Missouri’s Vehicle Sales Tax Process Will Soon Be Easier

I've never been a big fan of how the State of Missouri collects taxes on our vehicles. It seems to require a couple of extra steps to keep everything legal. Yet, starting in July 2026, at least paying your sales tax on your new or new-to-you truck or SUV will be a little easier than it has been, and perhaps for some, it'll be less of a struggle overall to pay the taxes.

KSHB says that starting in July 2026, the Department of Revenue will be connected to Missouri's auto dealerships, and Missourians will pay the sales taxes on their vehicle at the time of purchase rather than having to go to the License Office to pay those taxes 30 days later.

KSHB says one of the state's main goals with these changes is to crack down on drivers with expired temporary tags. I suspect the state also knows there's a good chance getting the taxes paid upfront means they'll see more tax revenue and fewer folks sitting in a courtroom over driving with expired temp tags because they couldn't afford to pay the taxes.

I've bought three vehicles in my life. In Texas and Illinois, I financed the cars I bought and never really worried about the taxes at purchase because they get rolled into the total purchase price with GAP Insurance and whatever other fees get added to the vehicle before you can drive it off the lot.

Yet the KSHB article didn't mention any of that and implies it will be more of a hardship not to be able to pay the taxes in 30 days. I can understand the sentiment for some, especially those buying a car outright without financing or someone who has saved a bit for a lower-priced vehicle but now has to come up with more cash before they buy the car.

Since the KSHB article didn't mention rolling the taxes into the vehicle's financing, I reached out to Ryan Ball from Rick Ball Ford Lincoln in Sedalia and asked if that would be possible.

Ryan told me yes, it would be possible, but it could have some restrictions pending the loan amount, credit, and vehicle value. He told me his store does that for people at times now by cutting them a check for the License Office, but he says it will be easier to do when they're collecting the tax.

Look, state and local taxes on vehicles are expensive. A $30,000 vehicle purchased in Pettis or Johnson County will cost the buyer just over $2,000 in taxes and a $20,000 vehicle just under $1,500. A $10,000 car is around $700, and a $7,000 vehicle is around $500.

I can sympathize with the car buyer buying a lower-cost vehicle outright and will have to come up with anywhere from a grand to $500 to pay the tax and drive the car off the lot.

Yet, you get into financing a car that costs 20-30K if you don't have a couple of grand to cover the taxes. I like the idea of rolling the taxes into the vehicle cost. If you're writing a check for a $30,000 car, I suspect there's a good chance you're not worried about what the taxes add to the purchase price.

For many, it'll make buying a car a little bit easier.