Total Range for 2025
| Base state sales tax rate | 4.45% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-7% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 4.45%-11.45% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Louisiana is 4.45%, but since the local rates range from 0-7% the total sales tax range is 4.45-11.45%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
Let’s say you’re selling a $60 game to someone in Lafayette, LA.
- Find Rate: Use a sales tax calculator (or similar service) to find Lafayette’s rate (let’s say 9.95%).
- Calculate Tax: Multiply price by rate: $60 x 9.95% = $5.97 (round to nearest cent).
- Total Price: $60 + $5.97 = $65.97
Nexus: Why do you need to collect sales tax in Louisiana?
If you’re selling goods and services in Louisiana then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Louisiana, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Louisiana exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
Services
Generally, services are exempt from sales tax in Louisiana. Exceptions include:
- Repairing tangible personal property
- Furnishing telecommunication services
Goods
- Generally, sales of tangible personal property are taxable in Louisiana, unless a specific exemption applies. This includes most physical items.
- Examples of taxable goods: furniture and appliances
Freight/Shipping
- Separately stated shipping charges are generally exempt from state sales tax. This means the customer can choose not to pay for shipping (by picking up the item themselves).
- Shipping charges included in the sale price are typically taxable.
Clothing
- Clothing is subject to sales tax in Louisiana
Electronics
- Electronics are taxable
SaaS
- SaaS is subject to sales tax as are cloud products
Digital Products
- Downloaded digital products such as music, movies, ebooks, or games are taxable
Software
The taxability of software can be a bit tricky. Here’s a general guide:
- Off-the-shelf software is generally considered tangible personal property and therefore taxable.
- Custom software development may be exempt as a service
How to register for sales tax in Louisiana
The Louisiana Department of Revenue’s Business Registration page offers a starting point. However, to register for a sales tax permit in Louisiana, you’ll need to go through the Louisiana Department of Revenue’s website, GeauxBiz.com (https://geauxbiz.sos.la.gov/).
Here’s a general process breakdown:
- Register Your Business: Since you’re likely setting up sales tax for the first time, you’ll need to register your business with the state if you haven’t already. GeauxBiz offers options for both new business registration and adding a Louisiana Department of Revenue business account to an existing business.
- Sales Tax Permit Application: Once your business is registered, you can proceed with the sales tax permit application. The website should guide you through the process.
How to collect sales tax in Louisiana
Here’s a breakdown of how to collect sales tax in Louisiana:
- Find Rate: It depends on the customer’s location (not yours). Use the LA Dept. of Revenue’s calculator or a reliable sales tax service.
- Charge the Tax: Add the rate to your prices. Show it separately on receipts.
- Keep Records: Track sales and collected tax for future tax filings.
- Next Steps: File & pay collected tax to the state (frequency depends on sales volume).
How to get a sales tax permit/license in Louisiana?
After registering your business, apply for a sales tax permit with the Louisiana Department of Revenue. This can be done online through the Louisiana Taxpayer Access Point (LaTAP). During the application process, you will need to provide details about your business operations, including the nature of your sales and estimated monthly sales.
When are Louisiana’s sales tax returns due?
Louisiana sales tax returns are due on the 20th of the month following the reporting period. This applies regardless of whether you file monthly or quarterly.
Here’s a breakdown for clarity:
- Monthly Filers: If you file monthly, your sales tax return and payment are due on the 20th of the next month. (e.g., Sales from January are due on February 20th)
- Quarterly Filers: If you file quarterly, your sales tax return and payment are due on the 20th of the month following the end of the quarter. (e.g., Sales from Q1 (Jan-Mar) are due on April 20th)
Is anyone exempt from sales tax in Louisiana?
While Louisiana doesn’t have a blanket exemption from sales tax for any single group, there are exemptions for certain purchases and situations. Here’s a quick rundown:
Exempt Items:
- Food for home consumption ( groceries)
- Prescription drugs and medical devices
- Utilities (electricity, gas, water)
- Certain educational materials
Exempt Organizations:
- Qualifying non-profit organizations may be exempt for purchases used for their charitable purposes.
- Government entities are generally exempt from sales tax.
