Standard rate
The standard sales tax rate in Missouri ranges for 2024 from 4.225 to 10.1%.
Reduced rate
There is a reduced sales tax rate for 2024 of 1.225% to 4.225% for certain items.
Sales of tax-free products and services
The following products and services are tax-free in Missouri:
- Machinery and equipment used in manufacture, drilling (mining), fabricating, or producing a product used for final consumption and others.
Who is obliged to register sales tax in Missouri
Seller to have sales tax nexus in the state if you have any of the following in the state:
- An office for business;
- An employee;
- Goods in a warehouse;
- Delivery of merchandise in Missouri in vehicles owned by the taxpayer and others.
Threshold
Starting January 1, 2023, remote dealers with sufficient physical or economic presence for establishing nexus in Arizona need to be registered to collect and pay sales tax in Missouri. This includes online sellers or remote sellers that have $100,000 in annual Missouri gross sales.
Marketplace thresholds by state
The special rules apply to the SAAS business.
Software as Service Tax Thresholds by state.
Marketplace
Effective January 1, 2023, Marketplace facilitators located outside of the state must register for sales tax in Missouri when they have revenue from Missouri of more than $100,000 yearly. In such a case, Marketplace is obliged to calculate and remit all sales tax for sales via this marketplace.
Sales tax payment and filing date
Depending on your tax liability, determine your filing frequency – either annual, monthly, or quarterly:
- Annual – $0.00 to $33.00;
- Quarterly – $33.34 to $133.33;
- Monthly – $133.34 to $9,999.99;
- Monthly with Prepayment – $10,000.00 and up.
Returns are always due on the 20th or the last day of the month following the reporting period. If the filing due date falls on a weekend or holiday – due the next business day.
Penalty and interest
- Late Filing Penalty – 5% of the tax due per month or fraction (maximum – 25%);
- Late Payment Penalty – 5% of the tax due.
Discount
A 2% discount is allowed if your sales tax return is filed before the due date.
Missouri Sales Tax Holiday
The sales tax holiday begins at 12:01 am on Friday, August 2, 2024, and ends on Sunday, August 4, 2024.
Exemption Scope:
In 2024, both state and local sales or use taxes are exempt on qualifying items during the holiday.
This is a change from previous years where only state sales tax was exempt.
Qualifying Items:
- Clothing: There is no minimum price requirement for clothing to qualify for the exemption.
- School Supplies: Items must be intended for use by students in kindergarten through grade 12 and priced at $50 or less per item.
- Computers: Computers priced at $1,500 or less qualify for the tax exemption.
Missouri Sales Tax Nexus
- Physical Nexus: Physical Nexus in Missouri is created through physical presence, such as having offices, warehouses, or employees in the state.
- Economic Nexus: Missouri requires remote sellers to collect and remit sales tax if they have $100,000 in gross sales into the state annually. This threshold ensures tax obligations for businesses with significant economic activities.