Missouri Put the Transfer-Tax Question in Its Constitution
Program and regulatory figures verified October 9, 2026. Details change; confirm your scenario with us.
Most states settle this with a statute a legislature can change. Missouri settled it in the constitution, with 83.73% of the vote.
The provision, verbatim
Missouri Constitution, article X, section 25 (Missouri Revisor of Statutes) — "Sale or transfer of homes or other real estate, prohibition on imposition of any new taxes, when":
"After the effective date of this section, the state, counties, and other political subdivisions are hereby prevented from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate."
Adopted 2 November 2010. Effective 2 December 2010.
★ Why constitutional matters more than statutory
A transfer tax created by statute can be raised by the next legislature. This one cannot be created at all without amending the constitution, which requires going back to the voters.
So for a physician buying in Missouri, this is not a rate that might change next session. It is a structural feature of transacting here.
★ What it does and does not say
We are going to be careful here, because the careless version of this claim is everywhere.
The section prevents imposing any new tax. By its own wording it is a bar on creating one, not a repeal of anything that existed before December 2010.
★ Some secondary sources assert that certain Missouri localities levy small transfer taxes pre-dating the amendment. We did not verify that at a primary source, so we are not publishing it either way. What we can tell you with certainty is the constitutional bar above, and that your closing statement is the authority on what you will actually be charged.
What this is worth, concretely
Michigan, which we researched the same day, charges $3.75 per $500 at state level plus a county rate — 0.86% combined, customarily the seller's.
| Purchase | Michigan combined transfer tax | Missouri |
|---|---|---|
| Kansas City typical value $327,320 | about $2,815 | ★ no state transfer tax to impose |
★ That is customarily a seller cost in Michigan, so it is not a line in a buyer's cash-to-close either place. It shows up in what a seller nets, which shows up in pricing. The Michigan statutes.
★ What you still pay in Missouri
A transfer tax is one closing cost among many, and its absence does not make a Missouri closing free. You will still see recording fees, title work, lender fees, prepaid taxes and insurance, and whatever the contract assigns to the buyer.
We publish no rate or payment figure on this site, so we are not going to estimate your closing costs here. On your actual file you get a real figure.
★ And the usual caveat: this is a constitutional provision, quoted so you can read it. It is not legal or tax advice, and your title company and attorney apply it to your transaction.
Mike Certo, NMLS #260555. (480) 296-6513 · mcerto@cfmtg.com.
Frequently asked questions
Does Missouri have a real estate transfer tax?
Article X, section 25 of the Missouri Constitution, adopted November 2, 2010 and effective December 2, 2010, prevents the state, counties and other political subdivisions from imposing any new tax, including a sales tax, on the sale or transfer of homes or any other real estate. By its wording it bars creating a new tax rather than repealing anything that pre-dated it.Why is Missouri's transfer tax rule in the constitution?
It was adopted by the voters as a constitutional amendment rather than enacted as a statute. The practical consequence is that a new transfer tax cannot be created by ordinary legislation; it would require amending the constitution, which means returning to the voters.How does Missouri compare with Michigan on transfer tax?
Michigan charges a state rate of $3.75 per $500 plus a county rate of 55 cents per $500, or 0.86 percent combined, customarily paid by the seller. On a purchase at Kansas City's typical value of $327,320 that would be roughly $2,815. Missouri's constitution prevents imposing any new tax on a real estate transfer.Are closing costs lower in Missouri because of this?
One closing cost is absent, but a Missouri closing still carries recording fees, title work, lender fees, prepaid taxes and insurance, and whatever the purchase contract assigns to the buyer. The transfer-tax provision removes a single line rather than making a closing inexpensive.Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content about physician mortgage financing, not a loan commitment and not legal, tax or financial advice. The Missouri Student Loan Repayment Program and the Health Professional Loan Repayment Program are administered by the Missouri Department of Health and Senior Services, not by Cornerstone; their terms, award amounts, eligible professions and application cycles are set by DHSS and change. Figures here carry the date we verified them against the programmes' own published pages. Physician-loan program terms, eligible degrees and overlays are set by the lender and change. All loans are subject to borrower, property and program qualification.