Trying to nail down New Orleans’ sales tax rate turns complicated fast. A percentage here, another layer there, and suddenly customers across the street pay different rates. If you’re selling into Orleans Parish, getting the rate wrong means collecting too much, too little, or filing in the wrong place entirely.
New Orleans operates with overlapping tax jurisdictions. State, parish, and special district taxes combine to create rates between 10% and 11% depending on exact location. With Louisiana’s January 2025 rate change and the state’s notoriously fragmented filing system, accurate collection requires more than guessing.
That’s where Hands Off Sales Tax (HOST) comes in. We determine your nexus obligations, calculate the correct rate for every address, register you across all jurisdictions, and file on time. Whether you’re crossing Louisiana’s $100,000 economic nexus threshold or managing existing Orleans Parish obligations, we keep you compliant without draining your time.
What Is the Sales Tax Rate in New Orleans?
The standard combined rate is 10%, consisting of three layers:
State of Louisiana: 5% (increased from 4.45% effective January 1, 2025)
Orleans Parish: 5% (parish tax)
City/Special Districts: Varies by location (0% to 1%)
The 5% Louisiana state rate applies uniformly across all parishes. However, Orleans Parish’s local additions and special district taxes create variations within city limits.
Orleans Parish Tax Breakdown
Orleans Parish adds a 5% local sales tax on top of the state rate. According to the Louisiana Tax Assessors Association, Orleans Parish imposes local sales taxes that together equal 5%.
The combined state and parish rate reaches 10% in most New Orleans locations before any additional special district taxes apply.
Special Tax Districts Push Rates Higher
Some New Orleans areas face additional sales taxes beyond the 10% baseline. Four special tax districts operate within city limits, adding approximately 1% in specific geographic zones.
Certain New Orleans ZIP codes face an 11% combined rate when special district taxes apply. These districts typically fund tourism infrastructure, economic development projects, or enhanced public services in designated areas.
Notable special districts include the French Quarter (funding additional police patrols and public safety initiatives) and the Convention Center District (supporting tourism infrastructure). These district-specific taxes apply only to transactions within defined boundaries, creating address-level variations that catch sellers off-guard.
How Louisiana’s January 2025 Rate Change Affects New Orleans
On January 1, 2025, Louisiana’s state sales tax increased from 4.45% to 5%. This change was part of comprehensive tax reform legislation and impacts all Louisiana sales.
For New Orleans sellers, this meant:
Orders placed before December 31, 2024 used the old 4.45% state rate (combined: 9.45% baseline)
Orders placed January 1, 2025 or later use the new 5% state rate (combined: 10% baseline)
The 5% state rate remains through December 31, 2029, then drops to 4.75% on January 1, 2030.
Sales Tax Rates by New Orleans ZIP Code
New Orleans contains approximately 54 ZIP codes, many with identical rates but some facing additional district taxes.
Most Common Rate: 10%
The majority face the standard 10% combined rate (5% state + 5% parish). This includes residential neighborhoods, most commercial districts, and standard retail locations.
Higher Rate Zones: 11%
Certain ZIP codes face an 11% combined rate due to special district taxes. These typically include high-tourism areas, specific economic development districts, or zones with enhanced public services.
Address-Level Precision Required
ZIP codes alone don’t guarantee correct rates. Louisiana uses destination-based sourcing for out-of-state sellers. You calculate tax based on the customer’s delivery address. Two customers in the same ZIP but different special districts can owe different rates.
Quick Reference: New Orleans Sales Tax by ZIP Code
Common 10% Rate ZIP Codes:
- 70129 (New Orleans East)
- 70115 (Garden District/Irish Channel)
- 70118 (Carrollton/Riverbend)
- 70114 (Algiers/West Bank)
Higher 11% Rate ZIP Codes:
- 70113 (Central Business District/French Quarter area)
- 70130 (Warehouse District)
Calculation Examples:
At the standard 10% rate, a $100 purchase costs $110 total ($10 sales tax). At the 11% rate in special districts, that same $100 purchase costs $111 total ($11 sales tax).
For a $1,000 order: 10% = $1,100 total | 11% = $1,110 total
What Triggers Sales Tax Obligations in Louisiana
You’re required to collect New Orleans sales tax once you establish nexus in Louisiana. Nexus means the connection between your business and the state that creates tax obligations.
Economic Nexus
Louisiana’s economic nexus threshold is $100,000 in retail sales to Louisiana customers during the current or previous calendar year.
Louisiana eliminated its 200-transaction threshold effective August 1, 2023, simplifying nexus to focus solely on dollar amounts.
Once you cross $100,000:
- Register within 30 days
- Begin collecting tax once approved (no later than 60 days after exceeding threshold)
- File returns with Louisiana Department of Revenue and potentially individual parish collectors
Physical Nexus
Physical presence creates nexus at any sales level. You have physical nexus if you maintain offices, warehouses, retail locations, employees, representatives, or agents in Louisiana, or inventory stored in Louisiana facilities (including third-party FBA warehouses).
Marketplace Facilitator Rules
If you sell through Amazon, eBay, or Etsy, the marketplace collects Louisiana sales tax on your behalf for those platform sales. However, sales through marketplaces don’t count toward your $100,000 threshold since the marketplace handles collection.
Direct sales through your own website still count toward nexus thresholds and require you to collect independently.
Filing Requirements for New Orleans Sellers
Louisiana splits sales tax administration between the state Department of Revenue and 64 parish tax collectors. This fragmented system creates compliance headaches.
State Filing
All Louisiana sellers file through Louisiana File Online (LAFile) with the Louisiana Department of Revenue. Filing frequency depends on sales volume: monthly, quarterly, or annual.
Returns and payments are due by the 20th of the month following the reporting period.
Parish-Level Filing
Depending on your sales volume and locations, you may need to file separate returns with Orleans Parish tax collectors. Each parish maintains its own filing system and deadlines.
A business selling statewide could file 65 separate returns, one state return plus 64 parish returns.
Industry-Specific Considerations
Certain industries face additional requirements in New Orleans:
Restaurants & Food Service: Food establishments in Orleans Parish with over $200,000 in annual food and beverage sales must file monthly returns for the Ernest N. Morial New Orleans Exhibition Hall Authority (NOEHA) tax using Form R-1325.
Hotels & Lodging: Establishments with six or more guest rooms must file monthly returns for the New Orleans Exhibition Hall Authority Additional Room Occupancy Tax by the 20th of each month.
Tax-Exempt Items: While most goods are taxable, Louisiana exempts groceries (food for home consumption), prescription medications, and certain medical devices from state sales tax, though local taxes may still apply.
Common Sales Tax Mistakes in New Orleans
Using ZIP Codes Instead of Address-Level Rates
The most frequent error is assuming ZIP codes determine rates. With special districts creating address-level variations, relying on ZIP code alone leads to under-collection or over-collection.
Missing the January 2025 Rate Change
Sellers who didn’t update their systems from 4.45% to 5% state tax on January 1, 2025 are collecting incorrect amounts. Every transaction since January 1 using the old rate creates audit exposure.
Misconfiguring Sales Tax Software
Automation tools calculate rates, but only if configured correctly. Common software mistakes include treating wholesale transactions as retail, double-taxing due to system overlap, or incorrectly taxing exempt items.
HOST offers a Free Sales Tax Software Review to audit your configuration and identify costly errors.
HOST: Your Partner for New Orleans Sales Tax Compliance
Managing New Orleans sales tax pulls you away from growing your business. Between tracking rate changes, calculating address-level variations, and filing across multiple jurisdictions, the compliance burden adds up fast.
Hands Off Sales Tax eliminates that burden. We’ve focused exclusively on sales tax services for over 25 years.
What HOST Delivers:
Nexus Analysis: We analyze your sales data to determine exactly where you’ve met Louisiana’s $100,000 economic nexus threshold and whether you have physical nexus in New Orleans.
Complete Registration: We handle registration with the Louisiana Department of Revenue and all required parish tax collectors, completing paperwork and managing follow-up.
Automated Filing: We prepare and file all Louisiana state and parish returns on time. Monthly, quarterly, or annually based on requirements.
Rate Management: We monitor Orleans Parish for rate changes and update your systems automatically, ensuring you always collect the correct amount.
Notice Management: We handle confusing notices from the Louisiana Department of Revenue or Orleans Parish collectors, interpreting what they mean and responding appropriately.
Audit Defense: We’re your trusted, battle-tested partner in resolving Louisiana sales tax audits, organizing documentation and defending your position.
Voluntary Disclosure Agreements: If you discover past obligations, we file VDAs with states to limit look-back periods and abate penalties.
Through our parent company TaxMatrix, we’ve helped North America’s largest companies manage sales tax requirements. Now we bring that expertise to small and medium-sized e-commerce businesses navigating Louisiana’s fragmented tax system.
Ready to Take New Orleans Sales Tax Off Your Plate?
Tax compliance shouldn’t drain your time or create constant stress. Every hour spent researching Orleans Parish rates, filing returns, or responding to notices is an hour not spent growing your business.
Whether you’re crossing Louisiana’s economic nexus threshold, expanding into New Orleans markets, or managing existing obligations, professional help eliminates guesswork and prevents costly mistakes.
Contact us today to discuss your New Orleans sales tax needs or schedule a free consultation. Let us handle the tax so you can focus on sales.
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 New Orleans?
The standard combined sales tax rate in New Orleans is 10%, consisting of 5% Louisiana state tax and 5% Orleans Parish tax. Some areas face an 11% rate due to special district taxes.
When did Louisiana’s sales tax rate increase?
Louisiana’s state sales tax increased from 4.45% to 5% effective January 1, 2025. This change applies statewide and remains in effect through December 31, 2029.
Do I need to collect New Orleans sales tax as an online 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.
Why do some New Orleans ZIP codes have different sales tax rates?
Four special tax districts operate within New Orleans, adding approximately 1% in specific zones. These districts fund tourism infrastructure, economic development, or enhanced services, creating address-level rate variations.
Where do I file New Orleans sales tax returns?
You file through Louisiana File Online (LAFile) for state returns, with filing frequency assigned based on your sales volume. Additionally, you may need to file separate returns with Orleans Parish tax collectors depending on your sales volume and locations.
How does Louisiana’s economic nexus work?
Louisiana’s economic nexus threshold is $100,000 in retail sales to Louisiana customers during the current or previous calendar year. Louisiana eliminated its 200-transaction threshold effective August 1, 2023, simplifying nexus to focus solely on dollar amounts.
