How to Figure Missouri Sales Tax on a Car
Some states have complicated auto-sales tax plans. Missouri, however, is not one of them. When you register a vehicle in Missouri, you pay a onetime sales tax that is based on the selling price of the vehicle, minus any applicable deductions. The value is not considered, and there is no additional annual tax to pay. If you're thinking about buying a vehicle, or if you've just bought one and need to register it, you'll need to determine how much you owe in sales tax.
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Instructions
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Determine the taxable value of the car. The taxable value is the selling price minus the manufacturer's rebate (for new cars only) and your trade-in allowance. For example, if the vehicle you are buying has a selling price of $20,000 and a manufacturer's rebate of $1,000, and you are receiving $3,000 for a trade-in, your taxable value would be $16,000.
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Determine the local sales tax in your jurisdiction. Although Missouri has a state-sales tax that applies to vehicle purchases, part of your sales-tax bill on a car comes from local taxes. Look up your county in the Missouri tax chart at dorx.mo.gov. Click on "Motor Vehicle License," then "Calculate Estimated Sales Tax."
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Add the local sales tax percentage to the Missouri state tax percentage. In 2010, the Missouri state tax percentage was 4.22 percent. For example, if you live in Butler county, which has a sales tax rate of 1.0 percent, you would add 1.0 percent to 4.22 percent, which equals 5.22 percent.
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Move the decimal place over two spots to prepare for the calculation. Using the sample, 5.22 percent should be displayed as 0.0522.
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Multiply the figure by the taxable value to determine the sales tax on the car. For the sample, the taxable value is $16,000. When multiplied by the total tax percentage, the result is $835.20, which would be the total tax due.
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Tips & Warnings
If you are replacing a vehicle that you sold outright, rather than traded in, you may be eligible for a tax break from the state of Missouri. Check with the Missouri Department of Revenue (dor.mo.gov) to learn more.
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