Louisiana sales tax starts at 5% for the state portion, but that is rarely what you actually pay at the register. Parishes, cities, school boards, and special districts stack their own levies on top, pushing the combined rate past 10% across most of the state and as high as 12.5% in a few economic development districts inside East Baton Rouge Parish.
The State Rate
The state rate is 5%, effective January 1, 2025, up from the previous 4.45%.1Louisiana Department of Revenue. General Sales and Use Tax It applies to tangible personal property sold, used, stored, or consumed in Louisiana, and the tax is calculated on the gross sales price. Separately stated installation charges are excluded from the taxable amount; if a seller bundles installation into the price without breaking it out, the full amount is taxable.2Louisiana State Legislature. Louisiana Code RS 47:301 – Definitions
The matching use tax covers the other side of the transaction. If you buy something out of state and bring it into Louisiana, you owe the same tax you would have paid buying it locally.3Louisiana State Legislature. Louisiana Code RS 47:303 – Collection
What Louisiana Taxes
The tax base covers all tangible personal property unless a specific exemption applies: clothing, electronics, furniture, vehicles, and ordinary retail goods. Digital products joined the base on January 1, 2025, so downloads, streaming content, and electronically delivered software are now taxable.4Louisiana Department of Revenue. Are Digital Products Subject to Sales and Use Tax?
Services are taxed narrowly. Only ten categories are currently subject to sales tax:
- Lodging, including hotels and other sleeping accommodations
- Admissions to events, amusement parks, and similar venues
- Parking
- Printing and copying
- Laundry and dry cleaning, including alterations, pressing, and dyeing
- Cold storage
- Repairs and maintenance for tangible personal property and digital products
- Telecommunications
- Software access services (prewritten software accessed remotely)
- Information services
Services outside that list are generally not taxable, so hiring a lawyer, accountant, or landscaper does not trigger sales tax.5Louisiana Department of Revenue. How Many Services Are Subject to Sales Tax in Louisiana?
Key Exemptions
Groceries
Food sold for preparation and consumption at home is exempt from state sales tax. The exemption covers staples like bakery products, meat, and produce. Prepared food sold by restaurants, or ready-to-eat items from a deli counter, does not qualify.6Louisiana State Legislature. Louisiana Code RS 47:305 – Exemptions From the Tax
Prescription Drugs
Prescription drugs are exempt from both state and local sales taxes. The exemption covers drugs prescribed by a physician or dentist, including cancer treatment drugs administered in a doctor’s office and prescriptions filled under Medicare or Medicaid.6Louisiana State Legislature. Louisiana Code RS 47:305 – Exemptions From the Tax
Farm Equipment
Farm equipment gets a partial exemption from state sales tax. Only the portion of the price exceeding $50,000 per item is taxable, so a farmer buying a $70,000 tractor pays state sales tax on $20,000. The exemption covers tractors, harvesters, combines, irrigation equipment, grain storage facilities, and other implements used in food and fiber production. Local jurisdictions may or may not extend the same treatment, depending on resolutions adopted by their governing bodies.7Justia Law. Louisiana Code RS 47:305.25 – Exclusions and Exemptions; Farm Equipment
Resale Purchases
Businesses buying inventory for resale can purchase goods tax-free using a Louisiana resale certificate. Certificates are valid for one year from approval and must be renewed annually through LaTAP, the state’s online taxpayer access portal.8Louisiana Department of Revenue. Resale Certificate
Local Sales Tax on Top
Louisiana lets parishes, municipalities, school boards, and special taxing districts impose their own sales taxes above the state’s 5%. Municipalities alone can add up to 2.5% under state law, and once school boards, parish governments, and special districts stack their levies, the local portion often exceeds the state portion.9Louisiana State Legislature. Louisiana Code RS 47:338.1 – Tax Authorized; Rate; Sales Tax Districts; Certain Municipalities
Rates vary inside a single parish. In East Baton Rouge Parish, Baton Rouge’s standard combined rate is 10.5%, Baker and Central sit at 11%, and economic development districts like Harveston and Third-Florida reach 12.5%.10City of Baton Rouge. Sales and Use Tax Rates Effective January 1, 2025 Orleans Parish has a combined rate of 10% on tangible personal property.11City of New Orleans. Orleans Parish Sales Tax Rate
Because the correct rate depends on the delivery address, the Louisiana Uniform Local Sales Tax Board maintains a free tax rate lookup tool businesses can use to confirm the rate for any location.12Louisiana Uniform Local Sales Tax Board. About the Louisiana Uniform Local Sales Tax Board
Remote Sellers and Marketplaces
Out-of-state businesses selling into Louisiana must collect and remit sales tax once they cross an economic nexus threshold of $100,000 in gross revenue from Louisiana deliveries during the current or preceding calendar year. After crossing the threshold, a remote seller has 30 days to register with the Louisiana Sales and Use Tax Commission for Remote Sellers and must begin collecting within 60 days of approval.13Louisiana State Legislature. Louisiana Code RS 47:340 – Louisiana Sales and Use Tax Commission for Remote Sellers
Marketplace facilitators like Amazon, eBay, and Etsy face the same $100,000 threshold. Once crossed, the marketplace is treated as the dealer for every taxable sale it facilitates into Louisiana, regardless of whether the individual third-party seller would independently owe the tax.14Louisiana State Legislature. Louisiana Code RS 47:339.3 – Marketplace Facilitators; Collection and Remittance of State and Local Sales and Use Tax If you sell through a marketplace, those sales count toward the marketplace’s threshold rather than yours. Your direct sales determine whether you independently need to register.
Registering and Filing as a Seller
Any business making taxable sales in Louisiana needs a sales tax permit. Registration is free and handled online through the state’s GeauxBiz portal. You’ll need your federal employer identification number (or Social Security number for sole proprietors), business structure details, physical address, projected Louisiana sales, and industry code. Most applications are processed within three to seven business days. Depending on your business type, you may also need to register separately with your local parish tax collector, which can involve additional requirements or fees.
Returns and payments are due on the 20th of the month following the end of the reporting period. Most businesses file monthly, though some qualify for quarterly filing based on lower sales volume.1Louisiana Department of Revenue. General Sales and Use Tax You collect the tax from customers at the point of sale and hold it until the return is due, and you must keep detailed records of all taxable transactions in case of audit.3Louisiana State Legislature. Louisiana Code RS 47:303 – Collection
File and pay on time, and you keep a small slice as vendor compensation. Dealers who submit by the deadline can deduct 1.05% of the taxes levied under RS 47:302, 321, and 331. Those statutes make up 4% of the 5% state rate, so the effective compensation works out to roughly 0.84% of total tax collected, capped at $750 per month per dealer no matter how many locations you operate.15Louisiana Department of Revenue. Revenue Information Bulletin No. 25-006 – Vendor’s Compensation File or pay late, and you forfeit the compensation entirely for that period.
Penalties and Interest
The base penalty for filing or paying after the due date starts at 5% of the tax owed and increases by another 5% every 30 days until it hits a 25% maximum. The Department of Revenue can waive this penalty if you demonstrate reasonable cause rather than negligence.16Louisiana Department of Revenue. Penalties Interest also accrues on unpaid balances. For 2025, the annual rate is 11.25%, calculated as three percentage points above the judicial interest rate, and it is updated annually.17Louisiana Department of Revenue. Revenue Information Bulletin No. 25-001 – 2025 Interest Rate Collected on Unpaid Taxes
When the Department finds you underreported tax due to carelessness, it can assess a penalty of 20% of the deficiency. If the understatement exceeds 10% of your actual liability, that 20% penalty is presumed to apply unless you can show reasonable cause and good faith. Understatements exceeding 25% of actual liability carry an additional 10% penalty on top of the negligence penalty.18Louisiana State Legislature. Louisiana Code RS 47:1604.1 – Penalties for Tax Deficiencies
The harshest penalty applies when a taxpayer willfully disregards Louisiana tax law: 40% of the deficiency. Willful disregard is presumed when a business fails to remit tax it actually collected from customers.18Louisiana State Legislature. Louisiana Code RS 47:1604.1 – Penalties for Tax Deficiencies