Quick Highlights on Missouri Sales Tax
| Detail | Value |
|---|---|
| State Sales Tax Rate Range | 4.225–10.1% |
| Base State Sales Tax Rate | 4.225% |
| Local Rate Range | 0–5.875% |
| Economic Nexus Sales Threshold | $100,000 |
| Reference Period | Current or Previous Calendar Year |
| Registration Deadline | Next transaction after threshold is crossed |
| Revenue Authority | Missouri Department of Revenue |
| Online Filing Portal | MyTax Missouri |
As a business, do I need to collect sales tax in Missouri?
Businesses are required to collect sales tax in Missouri if they have a sales tax nexus in the state. This includes having a physical presence or reaching a specific sales level, which establishes an economic nexus. This is why understanding Missouri state sales tax obligations is crucial for compliance.
Do I have a physical nexus in Missouri?
A physical nexus in the state of Missouri is established if your business has a physical presence in the state, like an office, warehouse, or store. Even temporary physical presence, like participating in trade shows or craft fairs, can create a nexus.
In Missouri, physical nexus is triggered by employees or contractors in any role — including back-office, administrative, and support functions, not just customer-facing roles.
How do I know if I have an economic nexus in Missouri?
An economic nexus in Missouri is determined by your sales volume. If your enterprise meets the threshold, you must register for a Missouri sales tax permit, collect tax on sales shipped to Missouri, and remit that tax to Missouri Department of Revenue.
In Missouri, economic nexus is established if your sales in the state exceed $100,000, based on Current or Previous Calendar Year.
Marketplace sales (e.g., Amazon, eBay) are included when calculating whether you've exceeded the Missouri economic nexus threshold.
Sales made for resale are excluded from the nexus threshold calculation for Missouri.
Non-taxable sales are excluded from the nexus threshold calculation for Missouri.
Once you cross the threshold, you must register by Next transaction after threshold is crossed.
Which goods are taxable in Missouri?
In Missouri, sales tax applies to:
- Retail sales of tangible personal property
- Prewritten (canned) computer software delivered on tangible media
- Utilities (electricity, gas, water)
- Hotel and lodging accommodations
- Certain amusement and entertainment admissions
Most services are not taxable in Missouri unless they involve the transfer of tangible personal property. Missouri does not tax digital goods or SaaS.
What items are exempt from sales tax in Missouri?
Missouri exempts the following from sales tax:
- Food and food ingredients for home consumption (reduced rate of 1.225%)
- Prescription drugs and medical oxygen
- Prosthetic devices and mobility-enhancing equipment
- Agricultural inputs (feed, seed, fertilizer)
- Manufacturing machinery and equipment
- Sales to government entities and qualifying nonprofits
Is SaaS taxable in Missouri?
SaaS and digital products (eBooks, downloadable video content, mobile apps) are not subject to sales tax in Missouri. SaaS is currently not taxable in Missouri. However, sales tax laws change frequently — always verify the latest guidance with your tax advisor.
How can a business get a sales tax permit in Missouri?
To obtain a sales tax permit in Missouri, businesses need to register with the Missouri Department of Revenue. Registration can be completed online through the MyTax Missouri.
You will need to provide detailed information about your business, including business type, ownership details, and the nature of your business activities.
When should a business file sales tax in Missouri?
Sales tax returns in Missouri are generally due on the Last day of the month following the reporting period for the previous period. Based on your annual tax liability, you may qualify for a less frequent filing schedule:
- Quarterly filing: Available if your annual tax liability is below $4,800 (returns due Last day of the month following the end of the quarter)
- Annual filing: Available if your annual tax liability is below $600 (returns due January 31st of the following year)
Note: Missouri was the last state to adopt economic nexus (effective January 1, 2023). Filing frequency is assigned based on annual tax liability: monthly if over $4,800, quarterly if $600–$4,800, and annual if under $600.
You can file your Missouri sales tax return through the MyTax Missouri at https://mytax.mo.gov/.
Does Missouri offer a timely filing discount?
Yes, Missouri offers a timely filing benefit for businesses that file and pay on time:
Missouri provides a vendor's collection allowance for timely filing and payment:
- 2% of the tax collected, capped at $140 per return
The allowance is applied automatically when the return is filed and paid by the due date.
What are the penalties for late filing in Missouri?
Missouri imposes the following penalties for non-compliance:
- Late filing/payment penalty: 5% per month of the unpaid tax, up to a maximum of 25%
- Minimum penalty: $25 for failure to file, even if no tax is due
- Interest: Accrues on unpaid tax from the due date at the statutory rate
Penalties may be waived for first-time violations or reasonable cause.
Is shipping taxable in Missouri?
In Missouri, the taxability of shipping and handling depends on how the charge is presented. Generally: • Taxable: If the shipping charges are mandatory or included in the price of a taxable item. • Non-Taxable: If shipping is separately stated on the invoice and provided as an optional service to the customer. Note: If you ship a mix of taxable and non-taxable goods in Missouri, the shipping charge must usually be prorated to determine the taxable portion. Confirm current rules with Missouri Department of Revenue at https://dor.mo.gov/.
Does Missouri have a Remote Seller program?
Missouri requires remote sellers who exceed the economic nexus threshold to register, collect, and remit sales tax using standard state rates.