How Much Is Sales Tax on a Car in Louisiana: Rates, Exemptions, Fees

Sales tax on a car in Louisiana runs between roughly 6.85% and 12% of the purchase price, made up of a 5% state rate plus a local parish rate that ranges from 1.85% to 7%.¹² The exact amount depends on the parish where you live, the final price after any trade-in and rebates, and whether you’re buying or leasing.

The State Rate and Your Parish Rate

The state sales tax on vehicles is 5%, effective January 1, 2025 and set through December 31, 2029 under Act 11 of the 2024 Third Extraordinary Session. It replaced the earlier 4.45% rate.¹

On top of that, every parish and municipality adds its own tax, with local rates between 1.85% and 7%. Louisiana’s average combined state-and-local rate is 10.11%, the highest in the country, so most buyers end up near that figure. The rate that applies to you is set by where you live, not where the dealership sits. Buying in a low-tax parish doesn’t help if your home address is in a higher-tax one.²

A worked example: on a $25,000 vehicle, a buyer in a parish with a 5% local rate owes $1,250 in state tax and $1,250 in local tax, totaling $2,500. A buyer in a parish with a 3% local rate owes $2,000 total on the same car. You can look up your parish and municipal rates on the Louisiana Department of Revenue’s online tables.³

What the Tax Actually Applies To

Tax is calculated on the net purchase price, not the sticker. Two things commonly bring that figure down.

Trade-In Credit

When you trade in a vehicle, its market value is subtracted from the sale price before tax is figured.⁴ Buy a $30,000 car with a $10,000 trade-in and you pay sales tax on $20,000. Negative equity on the trade-in (owing more than it’s worth) can be rolled into financing, but it doesn’t raise the taxable price.

Manufacturer Rebates and Dealer Discounts

Dealer discounts lower the cash price and therefore the taxable amount. Louisiana also excludes manufacturer rebates. Under Louisiana Revised Statute 47:301(13)(b), the sales price of a new vehicle “shall not include any amount designated as a cash discount or a rebate by the vendor or manufacturer.”⁴ A $3,000 rebate on a $35,000 car leaves you paying tax on $32,000. Many states tax rebates; Louisiana doesn’t.

Leased Vehicles

If you lease rather than buy, Louisiana doesn’t collect sales tax on the vehicle’s full value upfront. The 5% state rate and your local rate apply to each monthly lease payment instead.³⁵ You never pay tax on value you aren’t using, which often means a lower total tax bill than a purchase, though it’s baked into every monthly payment.

When You Owe Nothing or Less

Gifted Vehicles

A vehicle transferred through an Act of Donation carries no sales or use tax, provided the recipient doesn’t assume an existing loan on it.⁶ Donor and recipient don’t have to be related. The donation must be notarized and witnessed by two people, and the recipient files the Act of Donation form (DPSMV 1699) with the Vehicle Application (DPSMV 1799) at the Office of Motor Vehicles.

Active-Duty Military

Active-duty military personnel stationed in Louisiana who bought and titled a vehicle in another state are exempt from Louisiana’s use tax when they transfer the registration here. The exemption covers only the 5% state portion, lasts as long as the owner remains on active duty and stationed in Louisiana, and requires that sales tax was actually collected in the original state.⁷

Credit for Tax Paid in Another State

If you move to Louisiana and already paid sales tax on your car elsewhere, you can claim a credit against Louisiana’s use tax. The credit equals the other state’s rate applied to the value Louisiana would tax,⁸ and it covers both the state and local portions here.⁹

Two limits matter. The credit can’t exceed the Louisiana tax owed, so there’s no refund if the other state’s rate was higher. And Louisiana only grants the credit when the other state offers a reciprocal credit of its own. Armed forces members with active-duty orders of two years or more get the credit regardless of reciprocity.⁸ Bring proof of the tax paid in the other state when you apply for your Louisiana title.

When and Where to Pay

You have 40 days from the purchase date to pay the sales tax and file your paperwork with the Office of Motor Vehicles. Miss it and the penalty is 5% of the unpaid tax for every 30 days (or part of a 30-day period) you’re late, capped at 25% of the total.²

Interest accrues on top. Louisiana sets the rate annually at the judicial interest rate plus three percentage points; for 2025, that was 11.25% per year. Interest runs until the balance is paid, and no title issues until the taxes and fees are satisfied.

You can pay at any OMV office or through a licensed Public Tag Agent. Public Tag Agents handle the same transactions and often have shorter waits, but charge a small convenience fee. Credit cards, debit cards, money orders, and certified checks are generally accepted. The OMV ExpressLane online portal handles registration renewals, not initial title transactions, so the first filing has to be done in person.¹⁰ When you buy from a dealer, the dealer often collects and remits the tax for you.

Other Fees on the Same Bill

Sales tax is the biggest line, but it isn’t the only one. Expect these as well:¹¹

Title fee: $68.50
Handling fee: $8.00
License plate for an automobile: 0.1% of the vehicle’s value per year, sold in two-year increments with a $20.00 minimum (a $30,000 vehicle costs $60.00 for a two-year plate)
License transfer from another vehicle: $3.00
Lien recording on a financed vehicle: $10.00 to $15.00

Electric and hybrid owners pay an annual road usage fee on top of standard registration: $110 for electric vehicles and $60 for hybrids, to offset the gas tax those vehicles don’t generate.¹²

1
Louisiana Department of Revenue. What Is the State Sales Tax Rate?
2
Louisiana Department of Revenue. Vehicles Brought into Louisiana by New Residents Motor Vehicle Sales Tax
3
Louisiana Department of Revenue. General Sales and Use Tax
4
Louisiana State Legislature. Louisiana Revised Statutes Title 47 RS 47:301 – Definitions
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LII / Legal Information Institute. Louisiana Administrative Code Title 61 Section I-4303 – Imposition of Tax
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Louisiana Department of Public Safety Office of Motor Vehicles. Basic Requirements for Obtaining a Certificate of Title
7
Justia Law. Louisiana Revised Statutes Title 47 RS 47:305.48 – Exemption for Automobiles Owned by Military Personnel
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Louisiana State Legislature. Louisiana Revised Statutes Title 47 RS 47:303
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Louisiana State Legislature. Louisiana Revised Statutes Title 47 RS 47:337.86 – Credit for Taxes Paid
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Louisiana Office of Motor Vehicles. New Title and Registration
11
Louisiana Office of Motor Vehicles. Vehicle Registration, Title and Plate Fees
12
Louisiana Department of Revenue. Electric and Hybrid Vehicle Road Usage Fee