What is the sales tax in Louisiana? It’s more complicated than a single number. Between state rates, parish additions, and local variations across 64 parishes, Louisiana creates one of the most complex sales tax environments in the nation, with combined rates reaching 12% or higher in some areas.
Whether you’re launching an e-commerce store, expanding into Louisiana markets, or managing multi-state compliance, understanding how Louisiana structures sales tax determines whether you’re collecting correctly or leaving yourself exposed to audits and penalties.
That’s where Hands Off Sales Tax (HOST) specializes. We navigate Louisiana’s layered tax system so you collect the right amount in every parish, file on time across all jurisdictions, and stay compliant without drowning in administrative work. With nexus analysis, automated filings, and parish-level accuracy, knowing Louisiana’s state rate, parish variations, and local exceptions helps you price correctly, avoid overcharging customers, and protect against compliance gaps.
What Is the Sales Tax in Louisiana?
Louisiana imposes a 5% state sales tax, but no customer pays just 5%. Louisiana’s 64 parishes add their own local sales taxes ranging from 0% to over 7%, and municipalities add another 0.5% to 2%. Combined rates now exceed 10% in many areas, making Louisiana the state with the highest average combined sales tax rate in the United States.
The Louisiana Department of Revenue administers state sales tax while individual parishes collect and manage local portions. This split administration creates compliance complexity. You’re potentially filing with multiple parish tax collectors. For e-commerce, Louisiana requires destination-based collection, meaning every sale requires address-level tax calculation.
Louisiana State Sales Tax Rate
Louisiana’s state sales tax rate is 5%, applied uniformly across all parishes. This rate took effect January 1, 2025, as part of comprehensive tax reform legislation. The 5% rate remains through December 31, 2029, then decreases to 4.75% on January 1, 2030.
Louisiana taxes most tangible personal property sold at retail: clothing, electronics, furniture, and consumer products. Certain items receive preferential treatment: food for home consumption is exempt from the 5% state tax (though local taxes may apply), prescription medications are exempt, and manufacturing machinery plus agricultural equipment qualify for exemptions under specific conditions.
The state portion applies before parish and local taxes are calculated. This base rate remains constant. Variation comes entirely from local additions.
Parish Sales Tax: Where Complexity Multiplies
Louisiana’s 64 parishes each impose local sales tax-rates vary from 2% to 7%. Orleans Parish charges 5.00% parish tax, bringing combined state and parish to 10.00%. East Baton Rouge Parish charges 5.00%. Cameron Parish charges 2.45%.
Parish rates change through local ballot initiatives. Rates accurate six months ago may have shifted. Monitoring all 64 parishes is nearly impossible without specialized tools.
HOST’s sales tax filing services include automatic rate updates.
Local Sales Tax and Special Districts
Beyond state and parish rates, Louisiana municipalities impose additional local sales taxes, another 0.5% to 2%. New Orleans adds 0.06% city tax on top of 5% state and 5.00% parish rates, totaling 10.06%. Combined rates range from 5% to over 12%.
Louisiana also authorizes special taxing districts for tourism, economic development, and transit. Tourism districts in areas like the French Quarter impose extra taxes on hotels and restaurants, often applying only to specific transaction types.
Louisiana’s Unique Complexity:
Split Administration: Louisiana splits administration between the state Department of Revenue and 64 parish tax collectors. Each parish has its own filing system and deadlines. A statewide business might file 65 separate returns.
Destination-Based Sourcing: Tax calculation happens for every shipping address. Every order requires address verification and rate lookup.
Varying Filing Thresholds: Some parishes require separate registration for minimal sales. Others consolidate small sellers into state returns.
E-commerce sellers report spending 8-12 hours monthly on Louisiana sales tax administration, more than any other single state.
Economic Nexus: When You Must Collect
Louisiana requires out-of-state sellers to collect sales tax once they exceed $100,000 in gross revenue from Louisiana retail sales (excluding wholesale and resale transactions), measured over the previous or current calendar year.
Important: Louisiana eliminated its 200-transaction threshold on August 1, 2023. Nexus determination is now based solely on the $100,000 revenue threshold.
The 2018 South Dakota v. Wayfair Supreme Court decision authorized states to impose economic nexus on remote sellers. Louisiana implemented its rule July 1, 2020. Economic nexus applies regardless of physical presence. An online seller in California with no Louisiana employees, offices, or inventory still triggers nexus by selling $100,000 to Louisiana customers.
Marketplace facilitator laws add complexity. If you sell through Amazon, eBay, or Etsy, the marketplace collects and remits sales tax on your behalf for those sales. However, sales through your own website still count toward your nexus calculation and require you to collect independently.
HOST’s nexus analysis services review your sales data across all channels to determine exactly where you’ve triggered nexus obligations, including Louisiana’s thresholds.
Louisiana Sales Tax Exemptions
Louisiana provides exemptions for manufacturing machinery, agricultural equipment, purchases for resale, nonprofit organizations, and government purchases. Claiming exemptions requires proper documentation. Sellers must obtain and retain valid exemption certificates from buyers to avoid liability during audits.
How to Register for Louisiana Sales Tax
Before collecting Louisiana sales tax, register with the Louisiana Department of Revenue through Louisiana File Online (LAFile). You’ll need your federal EIN, business legal name, structure, ownership details, primary business address, and estimated monthly Louisiana sales. Depending on where you sell, you may need separate registrations with individual parish tax collectors, as requirements vary by parish.
Registration typically processes within 5-10 business days. HOST’s sales tax registration service handles the entire process across all required jurisdictions.
Filing Louisiana Sales Tax Returns
Businesses file monthly, quarterly, or annually with the Louisiana Department of Revenue based on assigned filing frequency. You may also file separate returns with individual parish tax collectors depending on the parish and your sales volume. Monthly returns are due by the 20th of the following month. Louisiana imposes a 5% penalty for late filing, plus 0.5% monthly interest on unpaid tax. Even with no sales, you must file zero returns to avoid penalties.
Between state returns, multiple parish returns, rate changes, and varying deadlines, businesses average 8-12 hours monthly managing Louisiana compliance. HOST’s automated filing services handle all Louisiana state and parish returns.
Common Louisiana Sales Tax Mistakes
Using outdated rates creates compliance gaps. Overcharging damages customer relationships while undercharging leaves you liable during audits. Missing parish filing requirements leads to delinquency notices. Misconfigured sales tax automation tools systematically overtax exempt items or double-tax due to system overlaps.
HOST offers a Free Sales Tax Software Review to audit your configuration and identify costly mistakes before they impact your business.
HOST: Your Partner for Louisiana Sales Tax Compliance
Louisiana’s multi-layered sales tax structure drains time without adding revenue. Whether you’re crossing economic nexus thresholds, expanding into Louisiana markets, or managing existing multi-parish obligations, professional help eliminates guesswork and prevents costly mistakes.
What HOST Delivers:
- Nexus Analysis: We analyze your sales data to determine exactly where you’ve met Louisiana’s economic nexus thresholds
- Complete Registration: We handle registration with the Louisiana Department of Revenue and all required parish tax collectors
- Automated Filing: We prepare and file all Louisiana state and parish returns on time
- Rate Management: We monitor all 64 parishes for rate changes and update your systems automatically
- Notice Management: We handle confusing notices from the Louisiana Department of Revenue or parish collectors
- Audit Defense: We’re your trusted partner in resolving Louisiana sales tax audits
- Software Optimization: We review and optimize your tax automation tools to calculate Louisiana’s complex rates correctly
We’ve been 100% focused on sales tax since 1999. Founded by Mike Espenshade, with parent company TaxMatrix serving North America’s largest companies, we bring enterprise expertise to e-commerce sellers of all sizes.
Ready to Simplify Louisiana Sales Tax Compliance?
Louisiana sales tax compliance should feel manageable and completely off your plate. Whether you’re launching in Louisiana markets, expanding statewide, or managing existing multi-parish obligations, the right sales tax partner keeps your compliance seamless.
At HOST, we match deep Louisiana expertise with automated systems and personalized support. Contact us today to discuss your Louisiana needs and get your sales tax compliance on track.
Want to learn more? Get our “10 Sales Tax Mistakes E-Commerce Sellers Make” e-book.
Frequently Asked Questions
What is the sales tax rate in Louisiana?
Louisiana’s state sales tax rate is 5% (effective January 1, 2025, through December 31, 2029). Combined with parish and local taxes, total rates now exceed 10% in many areas, with some municipalities reaching 12% or higher. Louisiana has the highest average combined sales tax rate in the United States.
How many parishes does Louisiana have, and do they all charge different sales tax rates?
Louisiana has 64 parishes, and each sets its own local sales tax rate ranging from approximately 2% to 7%. Combined with municipal taxes, this results in hundreds of different tax rates statewide.
Do I need to collect Louisiana sales tax as an out-of-state seller?
Yes, if you meet Louisiana’s economic nexus threshold: $100,000 in annual Louisiana retail sales. Once you cross this threshold, you must register, collect, and remit Louisiana sales tax regardless of physical presence. Louisiana eliminated its 200-transaction threshold on August 1, 2023.
How do I file Louisiana sales tax returns?
You file through Louisiana File Online (LAFile) for state returns, with filing frequency (monthly, quarterly, or annual) assigned based on your sales volume. Additionally, you may need to file separate returns with individual parish tax collectors depending on where you made sales. Returns are typically due by the 20th of the month following the reporting period.
