Want to sell products in Louisiana? This guide to the Louisiana sales tax will help you understand their tax system and avoid paying penalties due to incorrect filings for your ecommerce business. Let’s get started.
Louisiana Sales Tax at a Glance
Louisiana Sales Tax Rates & Calculations in 2023
The Louisiana sales tax rate in 2023 is 4.45% to 11.45%. This comprises a base rate of 4.45% plus a mandatory local rate of up to 7%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 11.45%.
List of Local Sales Tax Rates in Louisiana
Here's a snippet of the sales tax rates in a few cities and parishes in Louisiana:
Recent Tax Rate Changes in Louisiana
The Louisiana state sales tax rate has remained the same.
FAQs
How do you calculate Louisiana sales tax?
To calculate Louisiana sales tax, multiply the total purchase price by the combined state and local tax rate.
For example, with a purchase price of $100 in New Orleans (11.45% rate), the sales tax would be $11.45.
What are the penalties for not paying Louisiana sales tax?
Penalties for late filing or payment can be 5% of the tax due plus 0.5% monthly interest. Additional penalties may apply for negligence or fraud.
Is the Louisiana sales tax destination-based or origin-based?
Louisiana is a destination-based sales tax state. Sales tax is determined by where the customer receives the product or service.
Is Louisiana a Streamlined Sales Tax state?
No, Louisiana is not a Streamlined Sales Tax state.
Louisiana Sales Tax Nexus
FAQs
Do I need a Louisiana seller's permit if I’m only a wholesaler?
Yes, wholesale sellers in Louisiana need a sales tax certificate if they have nexus.
Do I need a Louisiana seller's permit if I only sell temporarily in the state?
Yes, even temporary selling triggers the need to register if you meet the economic nexus thresholds.
Exemptions from sales tax in Louisiana:
- Most non-prepared food and groceries
- Prescription drugs
- Utilities like water and electricity
FAQs
Are groceries taxable in Louisiana?
Most non-prepared groceries are exempt from state sales tax but may be taxable locally.
Is clothing taxable in Louisiana?
Yes, clothing is generally taxable unless it qualifies for a specific exemption.
Are digital products taxable in Louisiana?
Digital products like software, ebooks, music, etc. are taxable.
Is software-as-a-service (SaaS) taxable in Louisiana?
Yes, SaaS services are considered taxable in Louisiana.
Are services taxable in Louisiana?
Some services like repairs, telecommunications, and utilities are taxable. Professional services are generally not taxable.
Excise Taxes in Louisiana
For full details on the excise taxes in Louisiana, check this page. Here’s a summary of the essential excise taxes to remember before starting your ecommerce business.
Food and Beverage Tax in Louisiana
- Most non-prepared food and prescription drugs are exempt from state sales tax.
- Local exemptions may differ.
Remote Sellers in Louisiana
- Remote sellers with over $100,000 in sales or 200+ transactions have economic nexus.
- They must register and collect applicable state and local sales taxes.
Prepaid Sales Tax Rates for Fuel in Louisiana
- Gasoline: 20 cents per gallon
- Diesel: 20 cents per gallon
- Aviation Fuel: 5 cents per gallon
Local Sales Taxes in Louisiana
- Local sales taxes up to 7% are assessed in various cities/parishes on top of the 4.45% state tax.
- Local sales tax rates vary widely across jurisdictions.
How to Collect Louisiana Sales Tax if Out-of-State (Remote Sellers)
Even without a physical presence in Louisiana, out-of-state sellers may have economic nexus based on:
- Having over $100,000 in sales or 200+ transactions delivered to Louisiana customers.
- Affiliate relationships with Louisiana businesses.
- Inventory stored in Louisiana, including with Amazon FBA.
Once economic nexus is established, sellers must register for a Louisiana sales tax certificate and begin collecting applicable state and local sales taxes on sales to Louisiana customers.
Registration can be done online through the Louisiana Department of Revenue's website.
Collecting Sales Tax on Shipping Charges in Louisiana
- Separately stated shipping and delivery charges are generally exempt from Louisiana state sales tax.
- Shipping included in the item's sales price is generally subject to sales tax.
Filing and Paying Louisiana Sales Tax
- Sales tax returns are filed monthly or quarterly based on assigned filing frequency.
- Returns are due by the 20th of the month after the reporting period ends.
- Returns can be filed online through the Louisiana Department of Revenue's website or by paper form.
- Any collected sales tax must be remitted when the return is filed.
Louisiana Sales Tax Return Due Dates
Let’s look at the filing period and the due dates for each period.
Monthly Filers
Quarterly Filers
Late Filing Penalties in Louisiana
- 5% of the tax due if the delay is not more than 30 days.
- An additional 5% for each subsequent 30-day period or fraction thereof, capped at 25%.
- In case of late payment, 0.5% of the unpaid tax for each 30 days or fraction thereof, capped at 25%.
FAQs
What are the Louisiana sales tax due dates?
See the monthly and quarterly due date tables above.
Do I need to file if no sales tax was collected?
Yes, you still need to file a $0 return each period.
Can I get a filing extension in Louisiana?
Yes, extensions up to six months may be granted if requested before the due date.
What is the late filing/payment penalty?
The late filing penalty is 5% of the tax due if you're up to 30 days late, with an additional 5% accruing for each subsequent 30-day period or fraction thereof, capped at 25%. The late payment penalty is 0.5% of the unpaid tax for each 30-day period or fraction thereof, also capped at 25%.
Louisiana Sales Tax Audit Process
Let’s take a quick look at the steps followed during the audit and appeal in Louisiana.
- The Louisiana Department of Revenue (LDR) will send a formal notice to your ecommerce business indicating the intent to audit. This notice will specify the records required and propose a date for the audit.
- Before the audit, gather all necessary financial records, invoices, tax returns, and other relevant documentation. You may also consult with a tax advisor for guidance.
- An auditor from the LDR will review your records to ensure that you have accurately collected and remitted sales tax. This process may include verifying individual transactions, examining exemption certificates, and cross-referencing your records with tax returns.
- After completing the audit, the auditor will issue a detailed report. This report will outline any discrepancies, additional taxes owed, or refunds due.
- If discrepancies are found, you can pay the owed amount or enter into a payment plan. Penalties and interest may apply.
Appealing Audit Results in Louisiana
- If you disagree with the audit findings, you can file an initial appeal with the LDR, providing supporting documentation to contest the results.
- The LDR will conduct an internal review of your appeal. If the appeal is denied at this stage, you have further options for escalation.
- You can escalate the matter to the Louisiana Board of Tax Appeals, an independent body that reviews tax disputes.
- If the Board of Tax Appeals also denies your appeal, you can take the case to the Louisiana District Courts for a judicial review.
- Throughout the appeals process, you can present additional context or documentation that could lead to the reduction or elimination of penalties and interest.
Sales Tax Registration in Louisiana
If you’re ready to register your ecommerce business for a sales tax permit in Louisiana, follow the steps below.
How to Register
- Visit the Louisiana Department of Revenue website
- Click on the logo for geauxBiz.com
- Then click “Sign in or create new account” and click “Create account” on the following page
- On the business registration page, enter the details required to register your ecommerce business with the state of Louisiana
- Receive a sales tax certificate to collect and remit applicable sales taxes
Requirements for Online Sellers
- $100,000+ in sales or 200+ transactions creates economic nexus
- Physical presence also creates nexus
- Actively targeting Louisiana customers may create nexus if you deliver products to them
Cost
- There is no fee to obtain a Louisiana sales tax certificate.
Agencies to Register With
- Louisiana Department of Revenue
- Local parish/city collectors if selling locally
More Information
- Louisiana Department of Revenue
- Phone: (855) 307-3893
- Website: revenue.louisiana.gov
There you have it—a comprehensive guide on Louisiana's sales tax regime. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
Louisiana Sales Tax at a Glance
Louisiana Sales Tax Rates & Calculations in 2023
The Louisiana sales tax rate in 2023 is 4.45% to 11.45%. This comprises a base rate of 4.45% plus a mandatory local rate of up to 7%. Depending on the local sales tax jurisdiction, the total tax rate can be as high as 11.45%.
List of Local Sales Tax Rates in Louisiana
Here's a snippet of the sales tax rates in a few cities and parishes in Louisiana:
Recent Tax Rate Changes in Louisiana
The Louisiana state sales tax rate has remained the same.
FAQs
How do you calculate Louisiana sales tax?
To calculate Louisiana sales tax, multiply the total purchase price by the combined state and local tax rate.
For example, with a purchase price of $100 in New Orleans (11.45% rate), the sales tax would be $11.45.
What are the penalties for not paying Louisiana sales tax?
Penalties for late filing or payment can be 5% of the tax due plus 0.5% monthly interest. Additional penalties may apply for negligence or fraud.
Is the Louisiana sales tax destination-based or origin-based?
Louisiana is a destination-based sales tax state. Sales tax is determined by where the customer receives the product or service.
Is Louisiana a Streamlined Sales Tax state?
No, Louisiana is not a Streamlined Sales Tax state.
Louisiana Sales Tax Nexus
FAQs
Do I need a Louisiana seller's permit if I’m only a wholesaler?
Yes, wholesale sellers in Louisiana need a sales tax certificate if they have nexus.
Do I need a Louisiana seller's permit if I only sell temporarily in the state?
Yes, even temporary selling triggers the need to register if you meet the economic nexus thresholds.
Exemptions from sales tax in Louisiana:
- Most non-prepared food and groceries
- Prescription drugs
- Utilities like water and electricity
FAQs
Are groceries taxable in Louisiana?
Most non-prepared groceries are exempt from state sales tax but may be taxable locally.
Is clothing taxable in Louisiana?
Yes, clothing is generally taxable unless it qualifies for a specific exemption.
Are digital products taxable in Louisiana?
Digital products like software, ebooks, music, etc. are taxable.
Is software-as-a-service (SaaS) taxable in Louisiana?
Yes, SaaS services are considered taxable in Louisiana.
Are services taxable in Louisiana?
Some services like repairs, telecommunications, and utilities are taxable. Professional services are generally not taxable.
Excise Taxes in Louisiana
For full details on the excise taxes in Louisiana, check this page. Here’s a summary of the essential excise taxes to remember before starting your ecommerce business.
Food and Beverage Tax in Louisiana
- Most non-prepared food and prescription drugs are exempt from state sales tax.
- Local exemptions may differ.
Remote Sellers in Louisiana
- Remote sellers with over $100,000 in sales or 200+ transactions have economic nexus.
- They must register and collect applicable state and local sales taxes.
Prepaid Sales Tax Rates for Fuel in Louisiana
- Gasoline: 20 cents per gallon
- Diesel: 20 cents per gallon
- Aviation Fuel: 5 cents per gallon
Local Sales Taxes in Louisiana
- Local sales taxes up to 7% are assessed in various cities/parishes on top of the 4.45% state tax.
- Local sales tax rates vary widely across jurisdictions.
How to Collect Louisiana Sales Tax if Out-of-State (Remote Sellers)
Even without a physical presence in Louisiana, out-of-state sellers may have economic nexus based on:
- Having over $100,000 in sales or 200+ transactions delivered to Louisiana customers.
- Affiliate relationships with Louisiana businesses.
- Inventory stored in Louisiana, including with Amazon FBA.
Once economic nexus is established, sellers must register for a Louisiana sales tax certificate and begin collecting applicable state and local sales taxes on sales to Louisiana customers.
Registration can be done online through the Louisiana Department of Revenue's website.
Collecting Sales Tax on Shipping Charges in Louisiana
- Separately stated shipping and delivery charges are generally exempt from Louisiana state sales tax.
- Shipping included in the item's sales price is generally subject to sales tax.
Filing and Paying Louisiana Sales Tax
- Sales tax returns are filed monthly or quarterly based on assigned filing frequency.
- Returns are due by the 20th of the month after the reporting period ends.
- Returns can be filed online through the Louisiana Department of Revenue's website or by paper form.
- Any collected sales tax must be remitted when the return is filed.
Louisiana Sales Tax Return Due Dates
Let’s look at the filing period and the due dates for each period.
Monthly Filers
Quarterly Filers
Late Filing Penalties in Louisiana
- 5% of the tax due if the delay is not more than 30 days.
- An additional 5% for each subsequent 30-day period or fraction thereof, capped at 25%.
- In case of late payment, 0.5% of the unpaid tax for each 30 days or fraction thereof, capped at 25%.
FAQs
What are the Louisiana sales tax due dates?
See the monthly and quarterly due date tables above.
Do I need to file if no sales tax was collected?
Yes, you still need to file a $0 return each period.
Can I get a filing extension in Louisiana?
Yes, extensions up to six months may be granted if requested before the due date.
What is the late filing/payment penalty?
The late filing penalty is 5% of the tax due if you're up to 30 days late, with an additional 5% accruing for each subsequent 30-day period or fraction thereof, capped at 25%. The late payment penalty is 0.5% of the unpaid tax for each 30-day period or fraction thereof, also capped at 25%.
Louisiana Sales Tax Audit Process
Let’s take a quick look at the steps followed during the audit and appeal in Louisiana.
- The Louisiana Department of Revenue (LDR) will send a formal notice to your ecommerce business indicating the intent to audit. This notice will specify the records required and propose a date for the audit.
- Before the audit, gather all necessary financial records, invoices, tax returns, and other relevant documentation. You may also consult with a tax advisor for guidance.
- An auditor from the LDR will review your records to ensure that you have accurately collected and remitted sales tax. This process may include verifying individual transactions, examining exemption certificates, and cross-referencing your records with tax returns.
- After completing the audit, the auditor will issue a detailed report. This report will outline any discrepancies, additional taxes owed, or refunds due.
- If discrepancies are found, you can pay the owed amount or enter into a payment plan. Penalties and interest may apply.
Appealing Audit Results in Louisiana
- If you disagree with the audit findings, you can file an initial appeal with the LDR, providing supporting documentation to contest the results.
- The LDR will conduct an internal review of your appeal. If the appeal is denied at this stage, you have further options for escalation.
- You can escalate the matter to the Louisiana Board of Tax Appeals, an independent body that reviews tax disputes.
- If the Board of Tax Appeals also denies your appeal, you can take the case to the Louisiana District Courts for a judicial review.
- Throughout the appeals process, you can present additional context or documentation that could lead to the reduction or elimination of penalties and interest.
Sales Tax Registration in Louisiana
If you’re ready to register your ecommerce business for a sales tax permit in Louisiana, follow the steps below.
How to Register
- Visit the Louisiana Department of Revenue website
- Click on the logo for geauxBiz.com
- Then click “Sign in or create new account” and click “Create account” on the following page
- On the business registration page, enter the details required to register your ecommerce business with the state of Louisiana
- Receive a sales tax certificate to collect and remit applicable sales taxes
Requirements for Online Sellers
- $100,000+ in sales or 200+ transactions creates economic nexus
- Physical presence also creates nexus
- Actively targeting Louisiana customers may create nexus if you deliver products to them
Cost
- There is no fee to obtain a Louisiana sales tax certificate.
Agencies to Register With
- Louisiana Department of Revenue
- Local parish/city collectors if selling locally
More Information
- Louisiana Department of Revenue
- Phone: (855) 307-3893
- Website: revenue.louisiana.gov
There you have it—a comprehensive guide on Louisiana's sales tax regime. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
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About the author
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Deb Mukherjee
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale through seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
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