What is the Louisiana sales tax? Louisiana: Sales Tax Handbook

Louisiana:

Louisiana Sales Tax Rate LA Sales Tax 2016

State Sales Tax Local Sales Tax Range Average Local Tax Average Combined Tax Max Combined Tax
5.00% 0.00% - 7.00% 4.621% 9.621% 12%

2016 Louisiana Sales Tax Handbook

These rankings show how the Louisiana sales tax compares to the other 49 states + DC. The state with the highest sales tax is ranked 1st, and states with the same sales tax have a tie rank.

Louisiana's Sales Tax By The Numbers:

Louisiana has a lower-than-average state sales tax rate of 5.00%, but the actual combined sales tax rates are higher than average when local sales taxes from Louisiana's 171 local tax jurisdictions are taken into account.


Rankings by Average State + Local Sales Tax:

  Ranked 2nd highest by combined state + local sales tax

  Ranked 5th highest by per capita revenue from state + local sales taxes ($1,451 per capita)


Rankings by State Sales Tax Only:

  Ranked 12th highest by state sales tax rate

  Ranked 38th highest by per capita revenue from the statewide sales tax ($612 per capita)



Download Louisiana datasheet Printable PDF Louisiana Sales Tax Datasheet

Louisiana has a statewide sales tax rate of 5.00%, which has been in place since 1938.

Municipal governments in Louisiana are also allowed to collect a local-option sales tax that ranges from 0.00% to 7.00% across the state, with an average local tax of 4.621% (for a total of 9.621% when combined with the state sales tax). The maximum local tax rate allowed by Louisiana law is 7.00%. You can lookup Louisiana city and county sales tax rates here.

This page provides an overview of the sales tax rates and laws in Louisiana. If you are a business owner and need to learn more about things like getting a sales tax permit, filing a sales tax return, or making tax-exempt purchases for resale see the Louisiana Sales Tax Handbook's Table of Contents above.

What is exempt from sales taxes in Louisiana?

Many states have special sales tax rates that apply to the purchase of certain types of goods, or fully exempt them from the sales tax altogether. Here's how Louisiana taxes five types of commonly-exempted goods:


Clothing

  5.%

Groceries

  EXEMPT

Prepared Food

  5.%

Prescription Drugs

  5.%

OTC Drugs

  5.%

For more details on what types of goods are specifically exempt from the Louisiana sales tax see Louisiana sales tax exemptions. To learn more about what types of transactions are subject to the sales tax to begin with, see what purchases are taxable in Louisiana? Taxation of vehicle purchases in particular are discussed in the page about Louisiana's sales tax on cars.

Are services subject to sales tax in Louisiana?

"Goods" refers to the sale of tangible personal property, which are generally taxable. "Services" refers to the sale of labor or a non-tangible benefit. In Louisiana, specified services are taxable.

About the Louisiana Sales Tax

The state of Louisiana has relatively simple sales tax system, with a 4% statewide sales tax (.05% of which is allocated to the state's tourism district). However, in addition to the flat state tax rate, there are Parish-level taxes of up to 5% and some local-option city taxes of up to 2%, which will vary significantly depending on which jurisdiction you are in. Local taxes are often used to fund economic development projects, school districts, etc.

The Louisiana Department of Revenue hires private companies to conduct sales tax audits, which results in higher sales-tax-audit activity compared to other states.

Is the Louisiana Sales Tax Destination-Based or Origin-Based?

Louisiana is a destination-based sales tax state, which means that sales tax rates are determined by the location of the buyer when the transaction is completed. This means that, for orders placed via the internet/mail by a customer within Louisiana from a Louisiana vendor, the vendor must collect a sales tax rate applicable at the buyer's address (including any applicable local sales taxes). This can significantly increase the complication of filing your sales tax return, because different sales tax rates must be charged to different buyers based on their location.

Is Louisiana a Streamlined Sales Tax State?

Louisiana is not a member of the Streamlined Sales and Use Tax Agreement. The SSUTA is an agreement adopted by about half of states that ensures that their sales tax laws are simplified to lower the costs associated with compliance.

Contact the Louisiana Department of Revenue

The Louisiana Sales Tax is administered by the Louisiana Department of Revenue. You can learn more by visiting the sales tax information website at revenue.louisiana.gov.

Phone numbers for the Sales Tax division of the Department of Revenue are as follows:

  • Toll-Free Phone: (855) 307-3893

Learn More: Our Book Recommendations

If you would like to learn more about how to manage your Louisiana sales taxes, we recommend the following books:


Small Business Taxes For Dummies

This introductury book assists both current and aspiring small business owners with important tax planning issues, and covers a wide variety of small business tax topics.

Buy on Amaxon

A Guide to Sales and Use Tax

This book provides information and insights on how to comply with a multitude of sales and use tax laws and regulations. This is our recommendation if you need an in-depth look into sales taxes.

Buy on Amaxon

Simplify Louisiana sales tax compliance! We provide sales tax rate databases for businesses who manage their own sales taxes, and can also connect you with firms that can completely automate the sales tax calculation and filing process. Click here to get more information.


Louisiana Sales Tax Rates by Zip Code:

Need an updated list of Louisiana sales tax rates for your business? Download our Louisiana sales tax database!


** This Document Provided By SalesTaxHandbook **
Source: http://www.salestaxhandbook.com/louisiana