Origin vs destination sourcing in MO
Missouri is split: in-state sellers use origin-based sourcing (charge buyer the rate at the seller's location). Out-of-state sellers and marketplace facilitators use destination-based sourcing (charge buyer the rate at the delivery address). This makes MO uniquely complex for multi-channel sellers.
The economic nexus law (SB 153, effective 2023)
Missouri was the last state to adopt economic nexus after Wayfair. Out-of-state sellers must register and collect once they exceed $100,000 in MO gross receipts in the prior 12 months. Marketplace facilitators (Amazon, Walmart, Etsy) collect MO tax on third-party sales since January 2023.
Reduced grocery rate (not exempt)
Missouri taxes grocery food at 1.225% state (vs 4.225% general), but local taxes typically still apply at the full local rate. So a grocery purchase in St. Louis is 1.225% + 5.45% ≈ 6.7%, not zero. Several 2024 ballot measures to fully exempt groceries failed.
FAQ
What's Missouri's state sales tax rate?
4.225% general. Reduced 1.225% on qualifying grocery food. Domestic utilities are exempt from the state portion.
Why are MO local rates so high?
Missouri permits stacking of county, city, transportation development district (TDD), community improvement district (CID), and special tax districts. Some St. Louis suburbs exceed 11% combined.
Does Missouri tax SaaS or digital goods?
Generally no — Missouri does not tax SaaS or most digital products as of 2026. Canned/prewritten software delivered on tangible media is taxable; SaaS, downloads, and streaming are exempt under current DOR guidance.
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