Louisiana: Sales Tax Handbook
What purchases are exempt from the Louisiana sales tax?
While the Louisiana sales tax of 4.45% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Louisiana.
Sales Tax Exemptions in Louisiana
Examples of an exception to the Louisiana sales tax are certain types of prescription medication, farm and agricultural equipment, and some types of grocery items.
Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Louisiana:
These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.
Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":
Are services, shipping, installation, etc taxable in Louisiana?
The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Louisiana sales tax see the Louisiana sales taxability FAQ page.
Other tax-exempt items in Louisiana
This table lists a number of additional categories of goods and services that are exempt from Louisiana's sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in Louisiana.
|Food and Meals|
|Grocery Food||EXEMPT *|
|Leases and Rentals|
|Motor Vehicles||EXEMPT *|
|Manufacturing and Machinery|
|Utilities & Fuel||EXEMPT *|
|Medical Goods and Services|
|Medical Devices||EXEMPT *|
|Newspapers and Magazines|
|General Occasional Sales||EXEMPT *|
|Optional Maintenance Contracts|
|Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts||EXEMPT|
|Software and Digital Products|
|Custom Software - Delivered on Tangible Media||EXEMPT|
|Custom Software - Downloaded||EXEMPT|
|Customization of Canned Software||EXEMPT *|
|Vending Machine Sales|
* See notes in category taxability page for details
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