Does trading in my car reduce sales tax in Missouri?
Yes — in Missouri you generally pay sales tax on the difference between your new vehicle price and your trade-in value, which can save you money.
Quick Summary
Sales tax benefit:
- Tax is applied to the net difference after trade-in credit
- Can save hundreds or more depending on trade-in value
- State rules apply — consult us for exact calculations
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MO
Answered by Ryan Tharp
Last updated 10/29/2025, 1:21:04 PM
In Missouri, sales tax is typically calculated on the purchase price minus your trade-in credit. That means trading in a vehicle can reduce the taxable amount and save you money on your new vehicle purchase. Exact savings depend on the trade-in value and purchase price—our team can provide a precise breakdown during the transaction.
Ryan Tharp
General Manager, South County
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