Missouri Sales Tax Rates

Total Range for 2024

4.225%–10.1%

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Why do you need to collect sales tax in Missouri?

If you’re selling goods and services in Missouri then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.

Two types of nexus exist:

  1. Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Missouri, triggers this type. If you do, you likely need to collect sales tax.
  2. Economic Nexus: This kicks in when your sales within Missouri exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.

Is what you’re selling taxable in Missouri?

Now that you’ve grasped the basics of Missouri’s sales tax and nexus thresholds, let’s delve into whether your specific products or services are taxable.

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How to register for sales tax in Missouri

You have two options to register for a sales tax permit in Missouri:

  1. Online Registration: This is the faster and recommended method. Visit the Missouri Department of Revenue’s website at https://dor.mo.gov/ and navigate to the Online Business Registration page. Select “start registration” and follow the steps, which will involve:
    • Agreeing to terms and conditions
    • Providing your contact information
    • Entering details for each business owner
    • Filling out your business information
    • Submitting the application
  2. Paper Application: You can download Missouri Form 2643, “Application for Missouri Sales Tax Registration and/or Use Tax Permit,” from the department’s website and mail it in with the required information.

How to collect sales tax in Missouri

  1. Collect the Tax:
  • Once you know the combined rate, add it to your sales price during checkout.
  • You can show the breakdown of the product price and the sales tax amount separately on your receipt.
  1. Keep Records:
  • It’s crucial to maintain good records of your sales and the amount of sales tax collected for each transaction.
  • These records will be necessary when you file your sales tax return.
  1. File and Pay Sales Tax:
  • The frequency of filing your sales tax return depends on your total sales amount.
Example:
  • You sell a $20 t-shirt online.
  • Customer is in St. Louis, Missouri (with an 8.775% sales tax).
  • You charge 8.775% x $20 = $1.75 sales tax.
  • Customer pays $20 + $1.75 = $21.75 total.
  • You collect and report the $1.75 sales tax to Missouri.

FAQs

Do you have a physical nexus in Missouri?

A business has a physical nexus in Missouri if it has a substantial enough physical presence in the state to create a connection that justifies them collecting sales tax. Here’s what qualifies as a physical nexus in Missouri:

  • Owning or leasing a physical location: This includes offices, warehouses, or even retail stores in Missouri.
  • Having employees in Missouri: If you have employees who work in Missouri for more than 2 days per year, it establishes a physical nexus.
  • Storing inventory in a Missouri warehouse: Even if the warehouse isn’t owned by you, keeping inventory there creates a nexus.
  • Making sales face-to-face in Missouri: Participating in trade shows or having salespeople physically soliciting orders in the state can trigger nexus.
Do you have an economic nexus in Missouri?

Since January 1, 2023, Missouri also has an economic nexus law. This means that even without a physical presence, you might need to collect sales tax if your business makes over $100,000 from selling tangible personal property delivered into Missouri within the previous or current calendar year.

What is use tax in Missouri?
  • Rate: The use tax rate in Missouri is the same as the state’s base sales tax rate of 4.225%.
  • Local Rates: On top of the base rate, many Missouri localities have additional local sales taxes. You’ll be responsible for paying the combined sales tax rate applicable to your location in Missouri (where the item is delivered).
  • Who Pays It: Missouri residents are responsible for reporting and paying use tax on eligible purchases they make from out-of-state vendors who haven’t collected sales tax.
Do you need a seller/reseller permit?

In Missouri, a seller’s permit, also known as a sales tax license, is generally required for any business selling or renting tangible goods or taxable services within the state. This means that if your business falls under either of these categories, you’ll need to obtain a seller’s permit:

  • Selling Tangible Goods: This applies to most physical items you sell, with some exceptions like groceries or certain agricultural machinery.
  • Taxable Services: While services are generally not taxable in Missouri, there are exceptions. If your service directly results in the creation or sale of a tangible good, it might be considered taxable.
How to get a sales tax permit/license in Missouri?

To get a sales tax permit in Missouri:

  • Apply online at the Missouri Department of Revenue website: https://dor.mo.gov/.
  • Provide your contact info, business details, and estimated sales.
  • It’s faster than mailing Form 2643.
  • You’ll get your permit number within 10 business days.
When are Missouri's Returns Due?

The due date for filing your Missouri sales tax return depends on the frequency with which you are required to file, which is determined by your total sales tax liability. Here’s a breakdown:

  • Monthly Filing: If you expect your sales tax liability to be $1,500 or more per month, you must file and pay electronically by the 20th of the month following the tax period.
  • Quarterly Filing: If your sales tax liability is expected to be less than $1,500 per month, but more than $150 per quarter, you must file and pay electronically by the last day of the month following the quarter.
  • Annual Filing: If your sales tax liability is expected to be less than $150 per quarter, you can file and pay electronically by January 31st following the previous calendar year.
How to file sales tax in Missouri

There are three ways to file sales tax in Missouri:

  • Online: This is the quickest and easiest option. You can file and pay your sales tax through the Missouri Department of Revenue’s website https://mytax.mo.gov/rptp/portal/home.
  • By mail: You can use Form 53-1 to file and pay your sales tax by mail. You can get this form from the Missouri Department of Revenue’s website or by calling them.
  • Third-party tax service: There are a number of third-party tax services that can automate the filing and remittance of your Missouri sales tax. This can be a good option if you have a complex tax situation or if you simply don’t want to deal with the hassle of filing yourself.
Is anyone exempt from sales tax in Missouri?

Yes, there are certain categories of people and organizations exempt from paying sales tax in Missouri. Here are some examples:

  • Government agencies: Federal, state, and local government agencies don’t typically pay sales tax on purchases they make for governmental purposes.
  • Some nonprofit organizations: Non-profit civic, social, service or fraternal organizations that qualify for tax-exempt status under Internal Revenue Code Section 501(c)(8) or (10) are exempt for their civic or charitable activities. There are also exemptions for similar organizations from other states under certain conditions.
  • Merchants purchasing for resale: Businesses that buy goods to resell them in the normal course of business are exempt from paying sales tax on those purchases. However, they typically need to provide a resale certificate to the seller.
  • Certain purchases: Some specific goods and services are exempt from sales tax. This can include things like prescription drugs, certain medical equipment, and sales between states.

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