Louisiana Sales Tax and Use Tax
What is the Louisiana sales tax?
Taxes in Louisiana are destination-based, meaning the Louisiana sales tax rate is based, or determined from, the destination location an item is shipped to. This complicates business for retailers who need to have the exact and up-to-date sales tax rate for every shipment they make.
To see a full breakout of Louisiana sales tax rates by state, county, city and special district, use our easy Louisiana sales tax calculator. After putting in any ZIP code, you can enter a retail price to calculate Louisiana sales tax totals.
What is the Louisiana use tax?
The Louisiana state use tax rate is the same as the state, county, city and special district rates.
If you reside in LA, use tax is due to the state on any and all transactions where sales tax has not been paid, even out-of-state internet sales.
Who has to pay Louisiana sales tax or use tax?
In general, a business must collect and remit all applicable Louisiana sales taxes if that business has nexus, a physical presence such as a brick-and-mortar location, within a given state. The presence of an employee or salesperson, delivery by the seller's vehicle, and storage of materials usually establishes nexus as well.
Louisiana says that an out-of-state seller is required to collect tax if they can be defined as "dealers". Louisiana does not currently have additional laws establishing nexus for other reasons such as out-of-state businesses using in-state affiliates, advertisers or vendors, or businesses that make internet sales or mail catalogs.
If you are not sure if you have established nexus in Louisiana, you can usually get free help by contacting the Louisiana Department of Revenue. Click here for an updated listing of direct phone numbers. You could also contact a qualified certified public accountant or lawyer who specializes in tax law in Louisiana. Click here for listing of recommended resources.
Special rules applying to Louisiana sales tax and use taxes
- Shipping is not taxable if separately stated and other specific terms are met.
- Finance charges are exempt from sales tax.
- Clothing is taxed at the same rate as the general sales tax.
- Louisiana Sales tax holidays are held for hurricane preparedness items, for the state tax portion of most retail sales in late summer, and for some hunting supplies.
Since Louisiana legislators can vote to change the Louisiana sales tax and use tax rates at any time, it is very difficult for individuals to keep track of the changes. The population of LA state is also rapidly changing, which can cause frequent updates to the ZIP codes and local municipality names and complicates the job of keeping track of Louisiana sales tax jurisdictions.