LA Sales Tax 101 States

Louisiana Sales Tax Guide for Business

by Mark Faggiano

Louisiana Sales Tax

This blog post may now be out of date. For our most up-to-date info on Louisiana sales tax, check out our “Louisiana Sales Tax Guide for Businesses.”

How does Louisiana go about collecting sales tax? When should you worry about it and when is it ok to ignore? If these questions are bothering you, we want to provide the answers! Here’s a quick guide to cover all the basics of sales tax in Louisiana. 

You’re a merchant living anywhere but Louisiana

Did you sell an item to someone in the state of Louisiana but your business itself has no sales tax nexus in that state? Congrats, you don’t have to worry about sales tax and can go about your day.

You live and/or operate your business in Louisiana

In this scenario your business either exists in Louisiana or otherwise has physical presence there. You must collect sales tax on sales within the state. Louisiana is a destination-based sales tax state which means you’re concerned only where the customer exists, not where your business is located.

So let’s say your business is located in Baton Rouge and you sell to a customer in Lafayette. You’re only concerned with the rate in Lafayette and not Baton Rouge since that is where the customer lives.

The state rate in Louisiana is 5%. However, each county (called “parishes” in Louisiana) has its own additions, which often more than doubles that rate. You can find each individual city in the Louisiana City to Parish Index.

You live-out-of-state but have inventory in Louisiana

Here we have a scenario where your business exists outside of the state but you otherwise have sales tax nexus. Perhaps you have an employee or office in Louisiana, or you house inventory in the state. In this case you have to collect sales tax. Again, the rate you should charge customers depends on where your customer lives rather than where your business presence exists.

What constitutes nexus in Louisiana? Check out the definition from the Louisiana Department of Revenue website:

A seller or lessor will qualify as a dealer subject to tax collection requirements if they lease, rent, or sell tangible personal property in the state, furnish services in the state that are taxable under the statute, hold property in the state for resale, maintain a business location in the state, operate in the state through full-time or part-time resident or nonresident salesmen or agents, maintain an inventory in the state of tangible personal property for lease or rental, or deliver in a vehicle owned or operated by the seller.

lousiana nexus

As mentioned above, the state rate for Louisiana is 5%, but most counties (parishes) have their own additions. Make sure to consult the City to Parish Index for full rates.

Filing sales tax in Louisiana

If you must collect sales tax in Louisiana, you must first register your business for a Louisiana sales tax permit. You can do this online for free at the Department of Revenue Business ID Number Application page.

As for how to pay, if you owe more than $5000 you MUST pay online at the Louisiana TaxPayer Access Point. However, you can also grab the proper forms on the DOR website. You’ll be assigned to pay file a sales tax return  either monthly or quarterly. Both options are due on the 20th of the month following the period in which they’re collected for.

Sales tax on shipping

Louisiana does not require sellers to charge sales tax on shipping costs.

Summary: Louisiana is a straightforward destination-based state with many local rates

Louisiana is a destination-based state, which means you charge sales tax based on the rate where the customer lives. If they live in Monroe, you only collect sales tax based on the Monroe rate. However, if you don’t have nexus and your business exists outside the state, you shouldn’t have to collect anything at all. The base rate is 5% but individual parishes (same as counties) add on additional taxes.

You must register before you can collect and remit payment to the state. It’s easy enough to do online, but you can also grab the proper forms on the DOR website. You will pay either monthly or quarterly, on the 20th following the taxable period.

Do you have questions about collecting or remitting sales tax in Louisiana? Start the conversation in the comments.

  • Dana

    I’m assuming the same rules apply if selling through Etsy or your companies website?

  • That’s right. It doesn’t matter if you sell on your own website or an online channel like Etsy.

  • Mary

    Our company has recently established a nexus in LA. I’m reading that we need a S&U tax number for not only the state but also for each parish that we sell/ship something to? Should we get a number for each and every parish right away even though we may never ship/sell anything to one or more parishes?

    • Hi Mary,

      I can’t answer that one but can point you in the right direction. Contact the Louisiana Department of Revenue:

      Louisiana
      Phone Number: 855-307-3893
      Press 2 for Business Tax then 3 for Other Business Questions.

      I hope this helps!

    • YB

      https://parishe-file.revenue.louisiana.gov/default_1.aspx

      This website is an easy place to register for each parish. You do not need to register in parishes where you will have no sales.

    • YB

      https://parishe-file.revenue.louisiana.gov/default_1.aspx

      This website is an easy place to register for each parish. You do not need to register in parishes where you will have no sales.

  • KC

    Hi, i’d like to make sure that I have the correct understanding. We operate online and we are only based in Louisiana, which means we must only collect sales tax on orders shipped to a Louisiana address? Should we charge taxes on items that that are shipped to addresses outside of Louisiana? Also, when we pay our monthly taxes should we only acknowledge orders that were shipped to a Louisiana address (i.e. all orders for the month were shipped to others states, so we would file that we have $0 in income for the month)? Thanks so much!

    • Hi KC,

      You’re correct if you only have nexus in 1 state you should only charge sales tax to buyers in that state. Also, even if you don’t make any Louisiana sales, you should still file a sales tax return when it’s due, but indicate that your sales tax amount collected as zero. I hope this helps!

  • Jerry

    Quick question Mark. Are professional services taxable in Louisiana? We are a petrochemical company in Lake Charles and use professional engineers from Texas and from India. The vendors do not charge any sales tax so are we to file pay sales tax on these services? Also, we use a vendor from Texas for “technical support” and they send their people here. They are not repairing anything. Just helping us to file permits and such. Thanks for your help!

    • Hi Jerry,

      I don’t want to give you specific advice, but I can tell you that most services aren’t taxable in Louisiana. Short of contacting a CPA to make sure you’re not liable, I’d call the LA Department of Revenue to double check. Here’s their best number: https://blog.taxjar.com/state-sales-tax-phone-numbers/ Sorry I couldn’t give you a definitive answer, but I hope this points you in the right direction.

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