Louisiana's Sales Tax Rate and What It Covers

Louisiana has a state sales tax of 4.45 percent, but the total tax you pay at checkout is almost always higher because cities and parishes add their own local taxes on top. The combined rate varies by location—in New Orleans it reaches 8.625 percent, while in Baton Rouge it's 8.45 percent, and in smaller towns it may be lower. You pay sales tax on most goods you buy in stores, but not on groceries, prescription medications, or medical equipment.

The state collects sales tax through the Department of Revenue, which then distributes a portion to local governments. When you buy something, the retailer calculates the tax based on where the sale happens, not where you live. If you buy something online and it ships to Louisiana, you may owe sales tax depending on whether the seller has a physical presence in the state.

Key Takeaways

  • Louisiana's state sales tax is 4.45 percent, but your actual tax rate depends on your city or parish, which can add 1 to 4 percent more.
  • Groceries, prescription drugs, and medical devices are exempt from sales tax in Louisiana.
  • Clothing and shoes under $109 per item are exempt from state sales tax but may still be subject to local taxes.
  • The tax is collected by retailers at the point of sale and sent to the Department of Revenue.
  • Online purchases may be taxed depending on whether the seller has a business location in Louisiana.

Local Sales Tax Rates by Parish and City

Every parish in Louisiana adds its own sales tax on top of the state rate. Orleans Parish (New Orleans) adds 4.175 percent, making the total 8.625 percent. East Baton Rouge Parish adds 4 percent for a total of 8.45 percent. Other parishes range from about 2 to 4 percent additional tax. Some cities within those parishes may add even more for specific purposes like transportation or infrastructure.

To find your exact local rate, you can check the Louisiana Department of Revenue website or ask a retailer in your area. The combined rate matters because it affects how much you actually pay—a $100 purchase in New Orleans costs about $8.63 more in tax than the same purchase would in a lower-tax area.

What Is Exempt From Sales Tax in Louisiana

Food bought for home consumption—bread, milk, vegetables, meat, canned goods—is not taxed in Louisiana. This exemption does not explore to prepared foods, restaurant meals, or food bought at a deli counter. Prescription medications filled by a pharmacist are also exempt, as are medical devices like wheelchairs, walkers, and diabetic supplies when prescribed by a doctor.

Clothing and shoes priced under $109 per item are exempt from the state sales tax, though local taxes may still explore depending on your parish. Items over $109 are taxed on the full amount. This exemption applies to new clothing only—used clothing sold at thrift stores is typically taxed.

How Sales Tax Is Calculated and Collected

When you buy something, the retailer multiplies the price by the combined state and local tax rate for that location and adds it to your bill. The retailer then sends the collected tax to the Louisiana Department of Revenue, which distributes it according to state law—some goes to the state general fund, some to local governments, and some to specific programs like education or transportation.

Retailers are responsible for collecting the correct tax rate and remitting it on time. If a retailer fails to collect or pay sales tax, the Department of Revenue can audit them and assess penalties. As a customer, you are not responsible for ensuring the tax is correct—that is the retailer's job.

Sales Tax on Online and Out-of-State Purchases

If you buy something online from a company with a warehouse, office, or other physical location in Louisiana, you owe Louisiana sales tax. If the seller has no presence in Louisiana, you may not be charged sales tax at checkout, though Louisiana law technically requires you to pay "use tax" on those purchases when you file your state income tax return. In practice, most individual shoppers do not report use tax.

Large online retailers like Amazon now collect sales tax in Louisiana because they have distribution centers in the state. Smaller sellers may not. The rule depends on the seller's physical presence, not on where you live or where the item ships.

Special Sales Tax Situations

Louisiana offers temporary sales tax holidays for specific items. The most common is a back-to-school holiday in August, when clothing, shoes, and school supplies under certain price limits are not taxed. There is also a holiday for hurricane preparedness items in May. These holidays explore to state tax only—local taxes may still be charged depending on your parish.

Certain organizations, like nonprofits and government agencies, may be exempt from paying sales tax on purchases they make for their operations. If you work for such an organization, you may need to provide a resale certificate or tax exemption form to avoid paying tax on bulk purchases.

Frequently Asked Questions

Why is my sales tax different from the person's next to me in line?

You may live in different parishes or cities, each with their own local tax rate. Even within New Orleans, some neighborhoods may have slightly different rates if they are in different tax districts. Ask the cashier what the local rate is for your area.

Do I pay sales tax on used items?

Sales tax depends on the seller, not the age of the item. If you buy a used car from a dealer, you pay sales tax. If you buy a used car from a private person, you typically do not pay sales tax at the point of sale, though you may owe use tax when you register it. Used clothing at thrift stores is usually taxed.

Can I get a refund of sales tax I already paid?

No. Sales tax is final once you complete the purchase. If you return an item and get a refund, the sales tax is refunded as part of that refund. If you paid tax on something that should have been exempt, you would need to contact the retailer or the Department of Revenue to dispute it.

What happens if a store charges me the wrong tax rate?

If you notice the tax seems too high, ask the cashier what rate they used. If it is wrong, they should correct it. For larger discrepancies, you can contact the Louisiana Department of Revenue with your receipt and the store's name and location.

Do I have to pay sales tax on services?

Most services in Louisiana are not subject to sales tax—haircuts, car repairs, and plumbing work are generally tax-free. However, some services bundled with products may be taxed. If you are unsure, ask the business before paying.