Louisiana's sales tax rate and what it covers
Louisiana has a state sales tax of 4.45 percent, but the total tax you pay at checkout is almost always higher because cities and parishes add their own local taxes on top. The combined rate in most places ranges from 8.5 to 10.5 percent depending on where you shop. New Orleans, for example, charges 8.625 percent total; Baton Rouge charges 8.45 percent. You can look up the exact rate for your parish and city on the Louisiana Department of Revenue website.
The tax applies to most goods you buy in stores — clothing, electronics, groceries, furniture, and household items. However, Louisiana exempts certain things from sales tax: unprepared food you cook at home (like raw meat, vegetables, and bread), prescription medications, and medical equipment. Restaurant meals and prepared foods are taxed. Some services are also taxed, including repairs, haircuts, and dry cleaning.
Key Takeaways
- Louisiana's state sales tax is 4.45 percent, but your total tax rate includes local parish and city taxes, usually bringing it to 8.5 to 10.5 percent.
- Unprepared groceries and prescription medications are not taxed, but restaurant meals and prepared foods are.
- You can find your exact local sales tax rate on the Louisiana Department of Revenue website by entering your parish and city.
- Online purchases from out-of-state sellers may or may not be taxed depending on whether the seller has a physical location in Louisiana.
How local taxes stack on top of state tax
Every parish in Louisiana adds its own sales tax on top of the state rate. These parish taxes range from 3 to 5 percent depending on the parish. On top of that, many cities and towns add an additional local tax. This is why two people buying the same item in different parts of Louisiana pay different amounts of tax.
For example, in Orleans Parish (New Orleans), the state tax of 4.45 percent combines with parish tax of 4.45 percent and city tax of 0.375 percent to equal 8.625 percent total. In East Baton Rouge Parish, the state tax of 4.45 percent combines with parish tax of 4 percent to equal 8.45 percent. The Louisiana Department of Revenue publishes a complete list of rates by parish and municipality, and many parish tax assessor offices post their rates online as well.
What happens when you buy online or out of state
If you order from an online retailer that has no physical presence in Louisiana — no warehouse, office, or store — Louisiana cannot require that seller to collect sales tax from you. However, many large online retailers like Amazon now have distribution centers in Louisiana, which means they must collect Louisiana sales tax on your order.
If a seller does not collect Louisiana sales tax on your purchase, you are technically responsible for paying use tax to Louisiana when you file your state income tax return. In practice, most individuals do not report use tax, and Louisiana does not actively pursue individual taxpayers for small amounts. However, the obligation exists. If you buy a large item like a car or boat from out of state, you will owe sales or use tax when you register it in Louisiana.
Tax-free shopping periods and exemptions
Louisiana holds a sales tax holiday in August each year, typically lasting one week. During this period, most clothing, shoes, and school supplies under $100 per item are sold without sales tax. The exact dates change each year, so check the Louisiana Department of Revenue website in July to confirm when the holiday falls. Other states' tax holidays do not apply in Louisiana — you only get the break during Louisiana's official period.
Beyond the annual holiday, certain groups receive permanent exemptions. Nonprofit organizations registered with the state can purchase items for their operations without paying sales tax if they provide a resale certificate. Farmers buying equipment and supplies for agricultural use can also claim exemptions. These require documentation and registration with the state, not just a claim at checkout.
How sales tax is collected and reported
Retailers collect sales tax at the point of sale and hold it temporarily. They then remit the tax to the Louisiana Department of Revenue on a monthly or quarterly basis, depending on how much tax they collect. The state keeps the 4.45 percent state portion and distributes the local portions to the appropriate parish and city governments.
If you own a business in Louisiana, you must register for a sales tax permit with the Department of Revenue before you begin selling taxable items. You then collect tax from customers, keep records of what you collected, and file returns showing how much tax you owe. Failure to register or to remit collected tax can result in penalties and interest.
Frequently Asked Questions
Do I pay Louisiana sales tax on groceries?
No, not on unprepared food you cook at home. Raw meat, vegetables, bread, milk, and eggs are not taxed. But prepared foods — rotisserie chicken, deli sandwiches, hot pizza, and items from a salad bar — are taxed at the full rate because they are considered restaurant meals.
What is the sales tax rate in my city?
Go to the Louisiana Department of Revenue website and enter your parish and city name in their sales tax rate lookup tool. It will show you the exact combined rate. You can also call your parish tax assessor's office, which maintains the local tax rates.
Do I owe tax on items I buy from someone in another state?
If the seller has no physical location in Louisiana, they are not required to collect Louisiana tax. You are technically responsible for use tax, but it is rarely enforced for individual purchases under a few hundred dollars. For large purchases like vehicles or boats, you will owe tax when you register them in Louisiana.
Can I use a sales tax exemption certificate to avoid tax?
Only if you may have access to — nonprofits, farmers, and certain resellers can register for exemption certificates with the Department of Revenue. You cannot simply claim an exemption at checkout without documentation. Contact the Department of Revenue to see if your organization or business qualifies.