Missouri Car Sales Tax FAQs
01How does Missouri’s sales tax compare to other states?
The current known 4.225% sales tax in Missouri is relatively low compared to what’s charged in other states. For comparison, states that charge more (as of April 2024) include Texas (6.25%), Tennessee ( 7.00%), and Kansas (6.5%). Yet there are also states with lesser sales tax, such as Colorado (2.9% ) and Alabama (2.00% ). However, the differences in states’ taxes don’t equal loopholes drivers can exploit. Take note, the sales tax you pay doesn’t depend on where you buy the vehicle but rather where you register. When transporting it back to your home state, you need to bring a temporary registration card, the out-of-state title, and the bill of sale. To learn more, read How to Sell a Car in Missouri and Transfer Your Title.
02What documentation fees should you expect?
Some dealerships (but not all) charge a documentation fee which is essentially them passing along the expenses they are charged for filing contracts and tax documents. The specific cost will depend on the car or truck you’re purchasing, as well as the particular dealership. This doesn’t mean you should forego these upgrades, entirely. Just make sure that you factor gas mileage into your decision-making process about lifting your truck. For example, perhaps a three-inch height would provide the benefits you seek while saving you money compared to a six-inch.
03Can I finance the cost of the Missouri vehicle sales tax
Most auto dealerships allow you to finance your vehicle sales tax, including Bo Beuckman Quality Ford. However, if you’re paying for your new car or truck with a traditional loan, make sure to calculate the final amount you owe rather than just the initial sales price.
04Will the dealer collect the Missouri vehicle sales tax at the time of purchase?
During earlier years, the answer would have been not necessarily. Prior to summer 2021, it was due when you applied for the title and registration, a process that could be completed at the Missouri Department of Revenue. Now, tax is due at the time of the purchase. Thankfully, you can complete the transaction right at the dealership, sparing you a trip to the DMV. To read more, visit New Paper License Rules in Missouri.
05Can I set up a payment plan for my Missouri car sales taxes?
The good news is that you don’t have to pay the taxes on your newly purchased car all at once; in most payment plans, the amount due on taxes can be paid off monthly in equal increments. Missouri allows you to finance these fees along with the cost of your vehicle. This means you don’t have to worry about making a separate payment plan.
06Do I need to pay the Missouri sales tax if I purchased the car outside the state?
Missouri residents will need to pay the tax when obtaining a title, regardless of where you bought the vehicle. However, if you purchased the vehicle when living outside of Missouri and are now a new resident, the rules become more complex. If you acquired your car or truck within 90 days of moving to the state, you owe Missouri tax; if you bought it earlier than this, you owe the difference between what you paid in your previous home state and the sales tax in Missouri.
07Is the state sales tax the only sales tax I have to pay?
In addition to the Missouri auto sales tax, you will owe city and/or county taxes.
08Do I have to pay taxes on a car if it was a gift?
Good news! If you’re lucky enough to receive a vehicle as a gift, you will not have to pay taxes on the car or truck.
09Do I pay the same rate of taxes if buying an electric or hybrid vehicle in Missouri?
You perhaps heard about tax breaks for driving electric vehicles like the 2022 F-150 Lightning. This is indeed true, but expect for those incentives to apply as credits you can apply when filing your annual taxes rather than discounts during the upfront purchase.
10Can I get a tax break for selling my car in Missouri?
Yes! Most people will ultimately sell their vehicles for less than the original buying price, meaning that they take a hypothetical loss. You can document the difference between the two prices as a capital loss on your personal taxes. Plus, you don’t have to report any cash you make on your taxes.
11Are new and used cars taxed the same way?
The Missouri sales tax applies the same to both new and used vehicles. Moreover, this also applies to cars or trucks bought through private transactions (so don’t think buying outside of a dealership will open a tax loophole). If I trade in a vehicle, do I have to pay taxes on the whole value of the transaction or just for what I paid? You will be responsible for paying taxes on the value of the car or truck minus the value of the original trade-in.
Got Questions? Bo Beuckman Has Answers!
Whether you plan on buying a car or truck from Bo Beuckman or simply have questions, we can provide more information about paying the Missouri sales tax for your next vehicle purchase.
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