Louisiana has the highest average combined sales tax rate in the US at approximately 10.01% — driven by aggressive parish (county) and city taxes stacked on the 4.45% state base. New Orleans, Baton Rouge, and Shreveport all hit 9.45% combined. Despite the high rates, Louisiana exempts groceries and prescriptions at the state level.
Louisiana sales tax overview
| Component | 2026 Rate |
|---|---|
| State sales tax | 4.45% |
| Avg local add-on | 5.56% |
| Avg combined | 10.01% |
| Maximum combined | 12.95% |
Note: Louisiana has the highest avg combined sales tax rate in the US (~10%). State grocery exemption.
Louisiana sales tax by city
Combined state + local sales tax rates for major cities in Louisiana:
| City | Combined Rate |
|---|---|
| New Orleans | 9.45% |
| Baton Rouge | 9.45% |
| Shreveport | 9.45% |
What's exempt in Louisiana
Groceries
Exempt from Louisiana state sales tax. Local jurisdictions may still tax.
Clothing & footwear
Taxed at standard rate.
Prescription drugs
Exempt from sales tax (typical across most states).
Louisiana sales tax holidays
During a sales tax holiday, qualifying items are exempt from Louisiana sales tax. Some local jurisdictions may opt out — check with retailers near you.
2nd Amendment
1st weekend of September
Firearms, ammunition, hunting supplies
How Louisiana sales tax is calculated
Sales tax in Louisiana is calculated by multiplying the pre-tax purchase price by the applicable combined rate. The formula is simple:
Sales Tax = Purchase Price × 10.01% (avg combined)
Total = Purchase Price + Sales Tax
The exact rate depends on where the purchase occurs — the state base rate (4.45%) plus any local city or county add-ons. Louisiana allows local jurisdictions to add their own taxes, so the rate varies by location.
Quick calculation examples at average rate 10.01%:
$100 item
$10.01 tax
$110.01 total
$250 item
$25.02 tax
$275.03 total
$500 item
$50.05 tax
$550.05 total
$1,000 item
$100.10 tax
$1100.10 total
Additional tax-free items in Louisiana
Beyond the standard exemptions, Louisiana also provides sales tax relief on these categories:
Exemptions may have conditions. Always verify with the Louisiana Department of Revenue for complete rules.
Louisiana sales tax in context: rates, history, and neighbors
Louisiana has the highest combined average sales tax rate in the US — 10.01% — driven by aggressive parish (county) and municipal taxation on top of the 4.45% state rate. New Orleans 9.45%, Baton Rouge 9.95%, Shreveport 9.95%, Lafayette 8.45%. Some parishes hit 12.95% (the highest combined US rate). Louisiana's state rate dropped from 5% to 4.45% effective July 2018 (a temporary increase from 2016 was rolled back). Louisiana funds state government heavily through severance taxes (oil & gas), federal disaster recovery funds, and tourism taxes (the 5% Hotel and Lodging Tax in New Orleans is among the highest in the US). The state grocery exemption (4.45%) is meaningful but parish and city taxes still apply. Compared to neighbors: Texas (~8.20%), Mississippi (~7.07%), Arkansas (~9.44%) — Louisiana ranks #1 in combined sales tax burden.
Online shopping & Louisiana sales tax
Louisiana enacted economic nexus in 2020 — remote sellers with $100,000+ in Louisiana sales must register and collect Louisiana sales tax. Louisiana's sales tax system is notably complex: local parish and municipal taxes are collected separately from the state, meaning businesses may need to file with both the state (through Louisiana's Remote Sellers Commission) and individual local jurisdictions.
Use Tax reminder: If you purchase taxable goods online from a seller who does NOT collect Louisiana sales tax, you technically owe Use Tax — the same rate as sales tax, reportable on your Louisiana state tax return. Use Tax enforcement on consumers is rare but the obligation exists for significant purchases.
How much Louisiana sales tax on common purchases?
Using Louisiana's average combined rate of 10.01%:
| Purchase | Price | Sales Tax | Total |
|---|---|---|---|
| Grocery cart | $150 | Exempt | $150.00 |
| Clothing / shoes | $120 | $12.01 | $132.01 |
| Prescription drug | $80 | Exempt | $80.00 |
| Smartphone | $999 | $100.00 | $1099.00 |
| Laptop / tablet | $1,299 | $130.03 | $1429.03 |
| New car ($35,000) | $35,000 | $3503.50 | $38503.50 |
| Home appliance | $1,500 | $150.15 | $1650.15 |
| Restaurant meal | $60 | $6.01 | $66.01 |
Based on Louisiana's average combined rate of 10.01%. Exact tax depends on city/county. Use our calculator above for specific locations and amounts.
Collecting sales tax in Louisiana: business guide
If you sell goods or taxable services to Louisiana customers, here's what you need to know:
- Registration: Register for a Louisiana sales tax permit/license through the Louisiana Department of Revenue before making your first taxable sale. Most states process registrations online within a few days.
- Economic nexus (online sellers): If you have $100,000+ in Louisiana annual sales or 200+ transactions, you must collect Louisiana sales tax even without a physical presence in the state — per South Dakota v. Wayfair (2018). You must collect both state (4.45%) and applicable local rates.
- Destination vs origin sourcing: Louisiana uses destination-based sourcing for most sales — the tax rate where the buyer receives the goods applies. Always use the customer's delivery address to determine the rate.
- Filing frequency: Frequency depends on your Louisiana sales volume — monthly for high-volume sellers, quarterly or annually for low-volume sellers. Check with the Louisiana Department of Revenue for your specific filing schedule.
- Marketplace sales: If you sell through Amazon, Etsy, eBay, or similar platforms, the marketplace is required to collect and remit Louisiana sales tax on your behalf — you don't need to collect it separately on marketplace transactions.
- Resale certificates: Businesses purchasing goods for resale can provide a Louisiana resale certificate to suppliers to avoid paying sales tax on wholesale purchases. Keep copies of all resale certificates for audits.
Streamlined Sales Tax (SST): Louisiana is not currently a member of the Streamlined Sales Tax (SST) Agreement — check Louisiana Department of Revenue for filing specifics.
Louisiana-specific business compliance details
Louisiana sales tax compliance is uniquely complex — the state and parishes (counties) administer separate tax systems requiring separate filings. State sales tax filings go through the Louisiana Department of Revenue at revenue.louisiana.gov. Parish taxes go through the Parish Sales Tax Commissions or via the Louisiana Sales and Use Tax Commission for Remote Sellers (for out-of-state sellers — single-portal compliance). Filing frequency: monthly for most. Out-of-state sellers with $100,000+ in Louisiana sales (or 200+ transactions) register with the Remote Sellers Commission for unified filing. Marketplace facilitators collect on third-party sales. The dual state/parish filing burden makes Louisiana one of the most expensive states for multi-jurisdictional compliance. Penalties: 5% of unpaid tax per month, capped at 25%.
Louisiana sales tax frequently asked questions
Why does Louisiana have the highest average sales tax in the US?
Louisiana's parishes (counties) and municipalities have unusually broad authority to levy their own sales taxes, and they do so aggressively. The 4.45% state rate is actually moderate, but parish sales taxes of 4%–5% and city taxes of 1%–3% stack on top. In New Orleans, you pay 4.45% state + 5% Orleans Parish = 9.45%. Some specialized districts add even more. The result is an average combined rate over 10% — the highest in the country.
How much is the sales tax on a restaurant meal in New Orleans?
In New Orleans, restaurant meals are taxed at 9.45% combined (4.45% state + 5% Orleans Parish). On a $100 restaurant bill, you'd pay $9.45 in sales tax. Note that alcohol may be taxed at a higher rate in some jurisdictions. Compared to other major tourist cities, New Orleans is one of the more expensive for dining-out taxation.
Does Louisiana have a sales tax on food at grocery stores?
Louisiana exempts most grocery food from state sales tax (4.45%). However, parish (county) and city taxes may still apply to groceries — each local jurisdiction decides independently. In Orleans Parish, groceries face 5% local tax. In Baton Rouge's East Baton Rouge Parish, groceries face local tax as well. Truly tax-free grocery shopping requires a parish with no local grocery tax, which is rare in populated areas.