Missouri: The Show Me State

Missouri’s area of ​​180,000 km² stretches across the American Midwest. The state owes its name to the Missouri River. The eight neighboring states that Missouri has are not surpassed by any other US state. Only Tennessee is on par with the “Show Me State” in this category. According to ehuacom, the capital of the nearly six million populous state is Jefferson City.

Missouri is the only state with two Federal Reserve Banks. The large number of banks, insurance companies and tax consulting firms reflect Missouri’s strong financial sector.

The city of St. Louis alone is home to 21 Fortune 1000 companies. There is high growth in investment and financing throughout the state. Missouri’s two largest metropolitan areas, St. Louis and Kansas City, are among the 25 lowest cost markets to reside in. For corporate facilities and expansions, Missouri is the premier location in the region.

Missouri Location Map

FOCUS ON FINANCE AND INSURANCE SECTOR

Missouri has a significant presence in the financial and insurance sectors. Bank of America and MasterCard, for example, have offices here. St. Louis boasts the third highest location ratio for brokerage of securities and commodity contracts nationally. Insurance companies Reinsurance Group of America and Generali USA together have a 42 percent market share of national life insurance. With Swiss Re, another leading global life insurance specialist is represented in Missouri.

The industry continues to grow and numerous expansions, new facilities and start-ups have already been announced. Missouri is a top 10 state for financial sector job growth. In 2014, the “Show Me State” was the national best state for banking.

Missouri is committed to the financial and professional services sectors and offers numerous tax and funding incentive programs. Missouri’s cost-effective business climate and incentives will help you grow your business.

LOW TAXES AND CHEAP ELECTRICITY

Part of Missouri’s advantage comes from its low operating costs, which allow Missouri businesses a higher return on investment. Companies such as VA Mortgage Center and Edward Jones have established themselves here because of the Missouri Advantage.

Missouri’s low tax burden is also a key factor in its appeal. Nationally, the state has the third best corporate tax index, the eighth best property tax index and a better corporate tax climate than all surrounding states (Tax Foundation). Missouri’s tax climate increases your return on investment, making the state a great place for business growth.

Missouri can also score with low electricity prices. Commercial power is almost 20 percent cheaper than the US average, and industrial power is also more affordable to access (EIA, 2020).

CENTRAL LOCATION AS A LOCATION ADVANTAGE

Centrally located in the Midwest and central North America, Missouri is a booming commercial epicenter. You can ship your goods or products anywhere using international airports, the extensive river shipping lanes or any of the US Class 1 rail lines.

Missouri benefits from its excellent road network. You can reach more than half of the continental US in a day, most other states in less than two.

A good location enables you to get your goods to their destination quickly. With the Missouri location, you ensure that they reach large parts of your target market within a day.

MISSOURI INCOME TAX

Missouri charges an income tax of 1.5 – 5.4% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN MISSOURI

Missouri has a 4% corporate income tax. In addition, federal corporation tax is payable.

MISSOURI SALES TAX

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales tax rate in Missouri

The sales tax in Missouri is 4.225% at the state level. Municipalities or counties charge an average of 3.98% sales tax. Combined, an average of 8.20% is due.

Missouri Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

January 1, 2023

Transactions included:

Gross receipts from taxable sales of tangible personal effects shipped into Missouri

Treatment of tax-exempt transactions:

Exempted sales are not included in the threshold

Reason:

Sale only

Sales/Transactions Threshold:

$100,000

Evaluation period:

Current or previous calendar year, determined quarterly

Extra information:

  • Registration Requirements: TBD
  • SB 153

Missouri Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

January 1, 2023

Economic Nexus Threshold:

Greater than $100,000 in gross receipts from taxable sales of tangible personal property shipped to Missouri in the current or prior calendar year.

The Missouri Department of Revenue has not yet announced how the threshold will be calculated.

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Missouri Department of Revenue (DOR) and collect Missouri sales tax on sales that are not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold. Details TBD.
  • Remote Marketplace Sellers: You may need to register if you cross the Economic Nexus Threshold. Details TBD.
  • In-State Multichannel Sellers: You must register with the Missouri DOR and collect taxes on sales that are not taxed by a marketplace intermediary. Details TBD.
  • State Marketplace Vendors: You may be required to register with the Missouri DOR. Details TBD.