2025 Louisiana Sales and Use Tax Updates

Article

New sales and use tax updates have gone into effect in the state of Louisiana as of January 1, 2025. Learn more about the tax implications here.

2 minute read

January 28, 2025

Blake Fuqua

Partner-in-Charge, State and Local Tax

Never miss a thing.

old french building with typical iron balconies in the french quarter in New Orleans, Louisiana

As Louisiana moves into the new year, significant changes to the state’s sales and use tax took effect on January 1, 2025, under Louisiana House Bill No. 8 and House Bill No. 10.

Key Updates Include:

Sales and use tax rate increase
Expansion of tax
Repeal of exemptions
Vendor’s compensation reduction

Rate Increase

Beginning January 1, 2025, the state’s base sales and use tax rate will increase from 4.45% to 5%. Local sales taxes imposed by individual parishes and municipalities will remain in place, so the combined total tax rate will depend on the state and the applicable local tax rates.

Expansion of Tax

A notable change is the extension of Louisiana sales and use tax on digital products, including digital audiovisual works, digital audio works, digital books and other digital products.

Additionally, state sales tax of 5% will be imposed upon all charges for telecommunications services, cable television services, direct-to-home satellite services, video programming services and satellite digital audio radio services in the state.

This expansion of the taxable base will require individuals and businesses to pay tax on purchases of these items and collect tax on sales of these items, effective January 1, 2025.

Repeal of Exemptions

In addition to the rate hike and expansion of the sales tax base, Louisiana will also repeal certain sales tax exemptions. The repealed exemptions include charges for separately stated transportation, leases of cranes and related equipment with an operator, certain installation charges, charges for repaired property delivered out of state and machinery used by glass container or motor vehicle manufacturers.

Vendor’s Compensation Reduction

Vendor’s compensation is allowed if the sales and use tax return is timely filed and paid. The vendor’s compensation for collecting sales tax will be reduced starting in 2025. The maximum vendor’s compensation will be reduced to $750 per month, even if a dealer operates one or more business locations within Louisiana.

If you need assistance in identifying how these changes may impact your operations, Weaver can help. For more information, contact us.