Purchasing a new vehicle is an exciting experience, but understanding the associated costs, including sales tax, is crucial. In Missouri, like many other states, car sales are subject to tax, and it’s essential to know how much to expect to pay. This guide will explain everything you need to know about car sales tax in Missouri, ensuring you are well-prepared when buying your next vehicle.
In Missouri, you have a 30-day window from the date of purchase to title your newly acquired vehicle and pay the sales tax. Failing to title the vehicle within this period incurs a penalty. On the 31st day after purchase, a title penalty of $25 is applied, and this penalty increases by an additional $25 for every subsequent 30-day period of delay, up to a maximum penalty of $200.
When you buy a vehicle, you have options for operating it legally right away. You can obtain a temporary permit, transfer license plates from a vehicle you already own, or purchase new license plates. To help you estimate the taxes and fees involved, Missouri provides an online sales tax calculator.
Understanding Temporary Permits in Missouri
If you’ve just purchased a motor vehicle, trailer, or cycle and don’t have license plates to transfer, obtaining a temporary permit allows you to legally operate your vehicle. Missouri dealerships can issue these permits even to out-of-state residents buying vehicles from them.
Here are key points about temporary permits:
- Duration: Temporary permits are valid for 30 days from the purchase date.
- 60-Day Permits: In specific situations, certain qualified dealers can issue a 60-day permit.
- Single Permit: Only one temporary permit is allowed per vehicle.
- Validity: Once you’ve applied for the vehicle title, temporary permits are no longer valid and cannot be purchased.
- Exclusions: Temporary permits are not available for junk vehicles.
- Return Requirement: Upon receiving your permanent registration plates, the temporary permit must be returned to the Department of Revenue or its agent.
To get a temporary permit, visit any Missouri license office and bring the necessary documentation related to your vehicle purchase.
Fees for Temporary Permits:
- $5 Permit Fee
- $6 Processing Fee (if processed at a license office)
The temporary permit must be displayed clearly on the rear of the vehicle, trailer, or cycle, in the same manner as regular license plates, ensuring it is visible and not obstructed.
Transferring License Plates in Missouri
Missouri allows for the transfer of registration credit in many vehicle-to-vehicle registration scenarios. In some cases, you can even transfer your existing license plates to a new vehicle, eliminating the need to buy new ones.
Important Note: When a vehicle changes ownership completely, the seller’s license plates cannot be transferred to or used by the purchaser.
If you plan to transfer license plates from your old vehicle to your newly purchased one, you will need to visit a Missouri license office and bring the required documents.
Note: You might need to provide separate proof of an Identification Number/Odometer Reading Inspection (ID/OD) if the vehicle ownership was transferred to you using a title issued by another state or country. A current safety inspection can also satisfy this requirement.
Fees When Transferring License Plates:
- State Sales Tax: 4.225 percent of the purchase price, minus any trade-in allowance, plus your local sales tax. This is part of “How Much Is Car Sales Tax In Missouri” calculation.
- $8.50 Title Fee
- $2 Transfer Fee
- Registration (license plate) Fees: These vary based on taxable horsepower or vehicle weight and apply if you renew your registration during the transfer.
- Additional licensure fees if there’s an increase in horsepower.
- $6 Title Processing Fee
- $6 Registration Processing Fee for the transfer.
- $6 or $12 Registration Processing Fee depending on whether you choose a one-year or two-year registration, if applicable.
Estimating Taxes and Fees: Use the online tool to estimate your specific costs.
Trade-In from Out-of-State Dealer: If you purchased your vehicle from an out-of-state dealer and included a trade-in, you must provide proof of the trade-in to receive a tax credit when you title the vehicle in Missouri. Acceptable proof includes:
- A copy of the front and back of the title assigned from the owner to the dealer for the trade-in vehicle.
- A copy of the Secure Power of Attorney for the trade-in vehicle (if the title is held by a lienholder or a duplicate title is needed).
The trade-in amount should be recorded on the title assignment or the dealer invoice. If you have questions about transfer options, consult a clerk at a Missouri license office or contact the Motor Vehicle department.
Buying New License Plates in Missouri
If you’re purchasing new license plates for your vehicle, you will need to visit a Missouri license office and bring the necessary documentation.
Note: Similar to transferring plates, you might need to provide separate proof of an Identification Number/Odometer Reading Inspection (ID/OD) if the vehicle ownership was transferred to you on a title issued by another state or country. A current safety inspection will also meet this requirement.
Fees When Buying New License Plates:
- State Sales Tax: Again, 4.225 percent of the purchase price, less any trade-in allowance, plus your local sales tax is the base car sales tax in Missouri.
- $8.50 Title Fee
- Registration (license plate) Fees: Based on taxable horsepower or vehicle weight.
- $6 Title Processing Fee
- $6 or $12 Registration Processing Fee for one-year or two-year registration respectively.
Estimate your taxes & fees: Use the online calculator for an estimate.
Trade-In from Out-of-State Dealer: The same rules for trade-in proof apply as when transferring license plates if you purchased from an out-of-state dealer.
Payment Methods for Car Sales Tax and Fees
Missouri offers multiple payment options for your convenience:
- Cash
- Personal Check
- Cashier’s Check
- Money Order
- Credit or Debit Cards (Discover, American Express, VISA, and MasterCard only)
Personal checks must be made out to the Missouri Department of Revenue and must be preprinted with your name, address, bank code, and account number. Additionally, you must include:
- Driver’s license or non-driver’s license number
- Date of birth
- Daytime phone number
The Missouri Department of Revenue may electronically resubmit checks returned for insufficient or uncollected funds.
Credit / Debit Card Transactions: A “convenience fee” of 2.0% + $0.25 per transaction is charged by the card vendor for credit/debit card payments.
Protect Yourself from Curbstoning
Be aware of curbstoning, an illegal practice where unlicensed dealers pose as private sellers to evade regulations. These sellers often offload damaged, unsafe, or uninsurable vehicles, leaving buyers with significant problems and financial loss. Curbstoning is illegal in many states and defrauds numerous consumers each year.
Click here for more information about curbstoning.
If you suspect a curbstoning operation, report it to the Department of Revenue by submitting a completed Complaint Form 4683.
Utilize the New Auto Recall Search Tool
Automakers have launched a new tool to help increase consumer participation in auto recalls. This tool allows approved commercial and governmental entities, including state departments of motor vehicles, insurers, and dealers, to search for open recalls for numerous vehicles at once, free of charge.
Accessible at freeautorecallsearch.org, this search tool is a partnership between major auto manufacturer alliances and Carfax. It enables authorized users to check for recalls for up to 10,000 vehicles at a time, providing results quickly. This is a vital resource for improving recall participation rates, as studies show millions of vehicles on U.S. roads have unresolved recalls, despite free remedies being available to consumers. Read more about this initiative here.
Conclusion
Understanding “how much is car sales tax in missouri” involves knowing both the state rate and any applicable local sales taxes, as well as other fees associated with titling and registering your vehicle. Missouri’s system is designed to be straightforward, with resources like an online sales tax calculator and multiple payment options to make the process easier. By being informed about these aspects, you can ensure a smooth and compliant vehicle purchasing experience in Missouri. Remember to title and pay sales tax within 30 days of purchase to avoid penalties and take advantage of the tools and information provided by the Missouri Department of Revenue.
