Missouri Car Sales Tax: Everything You Need To Know

in Car Buying Tips
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Investing in a vehicle is a critical choice for many people. Cars aren’t cheap. If you’re interested in buying a vehicle, there is more to consider than the price tag. Fees, insurance, and sales tax are a few additional considerations. Sales tax differs in every state. If you live in Missouri, you might wonder - what is the Missouri car sales tax?

If you’re interested in learning more about the Missouri car sales tax, you’ve come to the right place. Read on to learn about the standard rate, how to calculate the tax and exemptions to the car tax. The more you know about the fee, the easier it will be to prepare for this investment. 

What Is The Missouri Car Sales Tax Rate?

Vehicle purchases are some of the most common investments across the country and in Missouri. The sale’s size means there could be a significant tax placed on purchases like vehicles, making it critical to understand the sales tax rate before making a final decision. 

According to bobeuckmanford.com, the Missouri car sales tax rate is 4.225%. When considering the sales tax rate of every other state, this fee is very low - almost 2% lower than in states like Tennessee and Texas. However, there are lower states. Alabama and Colorado are about 2% lower than the sales tax.

It’s also critical to consider the state’s local tax, which can add up to 4.5% alongside the Missouri car sales tax. There are also fees, insurance rates, and other registration costs when investing in a vehicle.

Let’s say you want to trade in a car rather than purchase one outright. There are different taxes to consider if you decide to go this route instead of the traditional method. 

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Car Trade-In Taxes

Car trade-in taxes differ slightly from taxes that come with a traditionally purchased vehicle. According to salestaxhandbook.com, there isn’t a traditional tax rate on car trade-ins. Instead, owners will receive a credit against the cost of the vehicle on the market. 

For instance, a used car may cost $10,000. If the trade-in vehicle is worth $5,000, it will only cost the individual $5,000 to complete the purchase. Taxes are applied to the out-of-pocket cost.

The trade-in value is not considered in the sales tax. Only the final price after the trade-in cost is removed is calculated at the 4.225% tax rate.

Let’s say you want to purchase a vehicle in Missouri and desire to estimate the sales tax ahead of time. It’s critical to understand how to calculate an approximate tax to make the best choice.

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Calculating Missouri Car Sales Tax

If you’re planning an investment in a vehicle, it’s helpful to have an estimation of the cost. The sales tax is one of the most critical parts of the payment on top of the official price of the car you want.

There are simple ways to calculate this tax. Once you have the number, add it to the existing price point.

If you want to calculate your estimated sales tax for a car in Missouri, you should:

  • Locate the official cost of the vehicle
  • Multiply the number by .04225
  • Jot down the final answer

This number is the estimation for your Missouri car sales tax.

There are also many online calculators to complete the process if you don’t want to do the math yourself. Once you understand what to anticipate, you can feel more confident in your large investment choice.

With any fee or tax, there are exemptions to consider. Are there any available for those who own vehicles in Missouri? Let’s talk about it.

Are There Exemptions From Missouri’s Car Tax?

There aren’t any explicit exemptions to the sales tax on vehicles in Missouri. However, it’s possible to gain them. If you believe you are in a situation that permits a tax exemption, speak to your local DMV to determine if you qualify.

The clearest form of tax exemption exists in the trade-in process. When you trade a used car for a new one, the sales tax only applies to the resulting cost when the credit from the trade is removed. You are only taxed on part of the investment.

For a proper estimate, it’s critical to remember there are additional fees on top of the sales tax. Let’s go over a few costs to expect for your new or used car.

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Other Fees To Consider

The sales tax isn’t the only item to consider when investing in a new vehicle in Missouri. Although it’s the biggest one, the smaller fees will add up and take you by surprise if you are not careful. Let’s discuss the other potential costs.

According to greenlightautocredit.com, here are additional fees to consider for your Missouri vehicle:

  • Registration fees
  • Title fees
  • Processing fees

These go on top of the added sales tax and the original price of the vehicle.

It’s critical to consider as many potential fees as possible to determine an accurate estimate for your car. It’s always better to overestimate rather than underestimate. If you pay less, it will feel good. If you pay more, it will be discouraging. Consider additional fees on top of sales tax for your Missouri vehicle. 

Final Thoughts

If you purchase a vehicle in Missouri, it’s critical to anticipate a car sales tax and additional fees. It isn’t fun to be taken by surprise when presented with additional costs at the signing table. The Missouri car sales tax is 4.225%, about in the middle when compared to other states in the country. There are also local taxes and fees to add on top of this number.

We hope this information was helpful! The more you know about the taxes and fees associated with purchasing vehicles in a certain state, the easier it will be to prepare and save for your purchase. Investing in a car isn’t a choice most people take likely - understanding potential payments will help the process tremendously.

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