Covering 180,000 km², Missouri stretches across the American Midwest and takes its name from the Missouri River. With eight neighboring states, no other US state has more; only Tennessee ties with the "Show Me State". The capital of this state of just under six million people is Jefferson City.
Missouri is the only state with two Federal Reserve Banks. Its many banks, insurers and tax advisory firms show just how strong its financial sector is.
St. Louis alone is home to 21 Fortune 1000 companies. Investment and financing are growing fast across the whole state. Missouri's two largest metro areas, St. Louis and Kansas City, rank among the 25 lowest-cost markets for a company headquarters. For setting up or expanding a business, Missouri is the best location in the region.
A focus on finance and insurance
Missouri has a major presence in finance and insurance. Bank of America and Mastercard, for example, have offices here. St. Louis has the third-highest location quotient in the nation for securities and commodity contract brokerage. The insurers Reinsurance Group of America and Generali USA together hold a 42 percent share of the national life insurance market. Swiss Re, another global leader in life insurance, is also based in Missouri.
The industry keeps growing, and numerous expansions, new facilities and startups have already been announced. Missouri is a top 10 state for job growth in finance. In 2014, the "Show Me State" was ranked the best state in the nation for banking.
Missouri is committed to the financial and professional services sector and offers a wide range of tax and financing incentive programs. Its low-cost business climate and incentives help you build your company.
Low taxes and cheap power
Part of Missouri's edge comes from low operating costs, which give companies here a higher return on investment. Thanks to the Missouri Advantage, companies such as VA Mortgage Center and Edward Jones have settled here.
Missouri's low tax burden is another key part of its appeal. Nationally, the state has the third-best corporate tax index, the eighth-best property tax index and a better business tax climate than all its neighbors (Tax Foundation). Missouri's tax climate boosts your return on investment and makes the state a great place to grow a business.
Missouri also scores with cheap electricity. Commercial power costs almost 20 percent less than the US average, and industrial power is more affordable here too (EIA, 2020).
A central location that pays off
Sitting in the heart of the Midwest and of North America, Missouri is a booming hub of trade. You can ship your goods anywhere via international airports, extensive river shipping routes or any of the Class 1 US railroads.
Missouri benefits from an excellent road network. You can reach more than half of the continental US within a day, and most other states in less than two.
A good location gets your goods where they need to go, fast. Based in Missouri, you can reach large parts of your target market within a single day.
Income tax in Missouri
Missouri levies income tax of up to 4.7% (top rate, tax year 2025). On top of that, you pay federal income tax.
Corporate tax in Missouri
Missouri levies corporate tax of 4%. On top of that, you pay federal corporate tax.
Sales tax in Missouri
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in Missouri
Missouri's state sales tax is 4,225%. Cities and counties add an average of 3.98%, for a combined average of 8.20%.
Missouri nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
January 1, 2023
Included transactions:
Gross receipts from taxable sales of tangible personal property delivered into Missouri
Treatment of exempt sales:
Exempt sales are not included in the threshold
Trigger:
Sales only
Sales/transaction threshold:
$100,000
Evaluation period:
Current or previous calendar year, measured quarterly
Additional information:
- Registration requirements: Register with the Missouri Department of Revenue (DOR) once you exceed the economic nexus threshold.
- SB 153
Missouri marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
January 1, 2023
Economic nexus threshold:
More than $100,000 in gross receipts from taxable sales of tangible personal property delivered into Missouri in the current or previous calendar year.
What counts are taxable sales of tangible personal property into Missouri in the current or previous calendar year.
Registration requirements:
- Remote multichannel sellers: Once you exceed the economic nexus threshold, you must register with the Missouri Department of Revenue (DOR) and collect Missouri sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You may need to register if you exceed the economic nexus threshold.
- In-state multichannel sellers: You must register with the Missouri DOR and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You may need to register with the Missouri DOR.
Compare other locations in our overview of US states, and find everything on opening an account for your US company under banking for US companies.
Our services for Missouri:
Planning a business with ties to Missouri? We'll work out which legal form and which state of incorporation suit you in a consultation. For a first overview, see our page on US company formation.