What is the Louisiana Sales Tax Rate?
Louisiana imposes a statewide sales tax rate of 5%, while local jurisdictions may also levy additional taxes depending on the location of the transaction. Businesses operating in or selling into the state should understand Louisiana sales tax laws, nexus requirements, filing obligations and Louisiana use tax responsibilities to remain compliant.
What’s Taxable in Louisiana?
Sales tax in Louisiana applies to the sale, lease or use of tangible personal property, certain digital products and specifically enumerated services. Businesses that sell taxable goods or services may be required to collect and remit Louisiana sales tax.
Examples of taxable items and services include:
- Clothing
- Computer software, including SaaS
- Digital products, including video streaming, audio streaming, and games
Because Louisiana tax regulations can vary depending on the product type and jurisdiction, businesses should regularly review state guidance to ensure proper tax treatment.
Sales Tax Nexus in Louisiana
A seller is liable to collect and remit Louisiana sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
LA: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Louisiana.
LA: Economic Nexus
Louisiana sales tax laws require remote sellers to collect sales tax if they exceed the state’s economic nexus threshold. Businesses generally establish economic nexus if they have over $100,000 in sales during the current or previous calendar year;
Does Louisiana Tax Online Purchases?
Yes. Sales tax in Louisiana generally applies to online purchases when the seller has established nexus in the state. Remote sellers meeting Louisiana economic nexus thresholds are responsible for collecting and remitting applicable sales tax.
Louisiana Sales Tax Exemptions
Certain sales in Louisiana are considered generally exempt from state’s sales and/ or use tax obligations.
Exempt Products and Services
- Most services, unless Louisiana statutes state otherwise
- Food for home consumption state tax
- Prescription drugs
- Agricultural inputs, agricultural machinery and equipment, and other agricultural tangible personal property
Entity- or Use-Based Exemptions
Additionally, Louisiana exempts sales to certain entities from sales/use tax, including:
- Sales to Louisiana state and local government
- Retailers selling for resale
- Purchases by manufacturers of materials for further processing into articles of tangible personal property for sale at retail
How to Claim Sales Tax Exemption in Louisiana
To claim an exemption, an entity must provide an exemption certificate with the sale. The Treasury provides Resale Certificate information
Additional guidance on acceptable exemption formats can be found in the state’s Publications.
Louisiana Filing and Remittance Requirements
Businesses registered to collect sales tax in Louisiana must file returns and remit taxes according to Louisiana tax regulations and filing schedules assigned by the Department of Revenue.
Louisiana offers several filing methods:
Electronic Filing Options
Paper Filing Options
- Form 1029 Sales Tax Return
- Form 1031 Direct Marketer Sales Tax Return
Pursuant to the authority provided in La. R.S. 47:1519(B)(1) and 1520(A)(2), the Secretary of the Louisiana Department of Revenue (the “Department”) is amending its administrative rules to expand the electronic filing and payment mandates to include:
All sales and use tax returns, except the Louisiana Consumer Use Tax Return, the Fairs, Festivals, and Other Special Events Sales Tax Return, and the Watercraft Sales Tax Payment Certifications. For more information see Revenue Information Bulletin No 25-030.
How to Register for a Louisiana Sales Tax License
Louisiana businesses or individuals selling tangible personal property or certain services to Louisiana consumers may need register to collect sales tax when meeting qualifying requirements. More information may be found at Business Registration.
For more on registration, you may consult Louisiana’s Sales Tax FAQs.
Frequently Asked Questions
Is Louisiana a part of the Streamlined Sales Tax (SST) initiative?
No, Louisiana is not part of the Streamlined Sales Tax (SST) initiative. More information concerning SST may be found here.
Does Louisiana have sales tax holidays?
Yes, Louisiana does have a sales tax holiday. The Annual Louisiana Second Amendment Weekend Holiday offers shoppers sales tax exemption on select firearms, ammunition, and hunting supplies.
Does Louisiana charge any special point-of-sale fees?
Yes, Louisiana imposes several point-of-sale fees including the E911 Fee and Tire Fee.
Is Louisiana origin or destination based?
Louisiana is a destination-based state for sourcing sales tax.
For more information on U.S. sales tax compliance across all 50 states, check out our State-by-State Sales Tax Guide.