Sales Tax Fundamentals
Get up to speed on the basics of sales tax
Is food taxable in Missouri?
byJune 11, 2020
Every US state makes their own rules and laws around the taxability of certain products. Many states, Missouri included, treat certain food, like groceries, a little differently than other items when it comes to how much sales tax a business should charge.
This post will explain grocery, meal and beverage taxability in Missouri.
Are groceries taxable in Missouri?
In Missouri, groceries are taxed at a statewide reduced sales tax rate of 1.225%. This includes all food items that may be purchased with Food Stamps, seeds and plants used to produce food for personal consumption, and food items refrigerated or at room temperature.
While the Missouri statewide sales tax rate on food is reduced to 1.225%, local tax rates still apply. So if you buy groceries in a county with a 2% sales tax rate, you’d pay 3.225% sales tax on groceries in that Missouri county.
Read more about sales tax on groceries in Missouri here.
Are meals taxable in Missouri?
In most cases, meals are taxed at the full sales tax rate in Missouri.
Meals that are fully taxed include food or drink “sold by any establishment where the gross receipts derived from the sale of food prepared by such establishment for immediate consumption constitutes more than 80% of the total gross receipts of that establishment, regardless of whether such prepared food is consumed on the premises of that establishment, including, but not limited to, sales of food by any restaurant, fast food restaurant, delicatessen, eating house or café.”
To sum it up, most prepared meals will be fully taxable at the entire combined state and local sales tax rate in the state of Missouri.
You can read more about prepared food taxability in Missouri here.
Are beverages taxable in Missouri?
In Missouri, beverages are generally taxable depending on where they are sold. If beverages are sold at an establishment where food for immediate consumption constitutes more than 80% of the total taxable receipts (such as a restaurant) then drinks are also taxable.
However, any beverages that can be purchased with Food Stamps (see more here) are also taxed at Missouri’s reduced state sales tax rate when purchased elsewhere, such as at a grocery store.
How to Always Collect the Correct Amount of Sales Tax in Missouri
Do you sell groceries, meals or beverages? Are you required to collect sales tax in Missouri? Then this may sound like a huge headache.
That’s where TaxJar can help.
With the TaxJar API, you can be sure you’re collecting the right amount of sales tax on every transaction. Our product tax codes ensure you do collect sales tax on that soft drink but don’t collect sales tax on that plain coffee drink.
Not to mention, most eCommerce businesses have nexus in multiple states. For example, groceries are taxable in some states, but non-taxable in others. Or, like Missouri, they are taxable at a reduced rate. With TaxJar, you’ll collect the right amount of sales tax from every customer, in every state, every time.
Further food and meal taxability resources:
- Sales Tax by State: Are grocery items taxable?
- Sales Tax by State: To-Go Restaurant Orders
- Is the food I sell on my food truck taxable?
- Missouri Sales Tax Guide for Businesses
Ready to automate sales tax collection, reporting and filing? Click here for more on how TaxJar can take the headache out of sales tax in your food & beverage business.