Escrow & Title

Missouri does NOT impose a state real estate transfer tax. This means:

AAll transfers are exempt from taxes

BBuyers pay no federal tax on the purchase

CThere is no state-level tax on transferring real property, unlike many other states✓ Correct

DCounty transfer taxes apply instead

Explanation

Missouri is one of the few states with no state real estate transfer tax. Unlike states such as Illinois, buyers and sellers do not pay a state transfer tax when conveying real property.

People Also Study

Key Terms to Know

Transfer Tax

A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.

Net Operating Income (NOI)

The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.

Deed of Trust

A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).