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2024 Guide to Sales Tax in New Orleans, Louisiana

Louisiana Sales Tax Rate
4.45%
Orleans Parish County Sales Tax Rate
2.5%
Special Sales Tax Rate
0%
New Orleans Sales Tax Rate
2.5%

If you're operating a business in New Orleans, Louisiana, it's essential to understand the local sales tax regulations to ensure compliance and smooth operation. This guide provides a comprehensive overview of the sales tax in New Orleans, Louisiana.

We will discuss the various sales tax rates at the state, county, and city levels, how to calculate sales tax in New Orleans, and the requirements for businesses to collect sales tax. Additionally, we provide sales tax rates for the top 10 most populated ZIP codes in New Orleans and tips to ensure compliance with sales tax regulations.

What is the Sales Tax in New Orleans?

The total sales tax rate in New Orleans consists of the Louisiana state tax rate, the Orleans Parish tax rate, and any applicable city tax rates.

Breakdown of Sales Tax in New Orleans

  • State Sales Tax: 4.450%
  • County (Orleans Parish) Sales Tax: 2.500%
  • City Sales Tax: 2.500%
  • Special Sales Tax: 0.000%

What is Orleans Parish Sales Tax?

In New Orleans, part of Orleans Parish, the parish sales tax adds an additional 2.500% to the state sales tax.

Tax Rates in New Orleans, Louisiana

Here are the sales tax rates for the top 10 most populated ZIP codes in New Orleans:

ZIP Code State Sales Tax County Sales Tax City Sales Tax Special Sales Tax
70114 4.450% 2.500% 2.500% 0.000%
70115 4.450% 2.500% 2.500% 0.000%
70117 4.450% 2.500% 2.500% 0.000%
70118 4.450% 2.500% 2.500% 0.000%
70119 4.450% 2.500% 2.500% 0.000%
70122 4.450% 2.500% 2.500% 0.000%
70126 4.450% 2.500% 2.500% 0.000%
70127 4.450% 2.500% 2.500% 0.000%
70128 4.450% 2.500% 2.500% 0.000%
70131 4.450% 2.500% 2.500% 0.000%

Other Tax Rates for New Orleans

Here are some other applicable tax rates for businesses in New Orleans:

Type of Sales Tax Rate
Non-Nexus Sellers – State Use Tax 4.450%
Non-Nexus Sellers – County Use Tax 2.500%
Non-Nexus Sellers – City Use Tax 2.500%
Non-Nexus Sellers – Special Use Tax 0.000%
Out-of-State Sellers – State Use Tax 4.450%
Out-of-State Sellers – County Use Tax 2.500%
Out-of-State Sellers – City Use Tax 2.500%
Out-of-State Sellers – Special Use Tax 0.000%
Marketplace Facilitators – State Sales Tax 4.450%
Marketplace Facilitators – County Sales Tax 2.500%
Marketplace Facilitators – City Sales Tax 2.500%
Marketplace Facilitators – Special Sales Tax 0.000%

What Items are Taxable in New Orleans?

In Louisiana, certain items are taxable while others are exempt. Common taxable items include:

Item Description TIC Number
Apparel Clothing and footwear 10020
Electronics Computers and accessories 20020
Furniture Home furnishings 30020

What Items are Exempt from Taxes?

Some items are exempt from sales tax in Louisiana, typically for essential goods or to encourage certain purchases:

Item Description TIC Number
Prescription Drugs Medications 40020
Groceries Unprepared food items 50020
Medical Equipment Durable medical equipment 60020

Who Needs to Collect Sales Tax?

In New Orleans, Businesses need to collect sales tax if they have either physical or economic nexus in Louisiana.

Physical Nexus

You have a physical presence in Louisiana if you:

  • Own or lease property in Louisiana
  • Have employees in Louisiana
  • Maintain inventory in Louisiana

Economic Nexus

You have economic nexus if your sales into Louisiana exceed $100,000 in the current or previous calendar year.

How to Get a Sales Tax Permit?

If you meet the nexus requirements, you must register for a sales tax permit in Louisiana. Here’s how:

  1. Visit the Louisiana Department of Revenue’s website.
  2. Complete the application for a sales tax permit.
  3. Submit the application and await approval.

How Do You Charge the Right Amount for Sales Tax?

Ensuring you charge the correct sales tax involves:

How Do You File and Remit Sales Tax?

Sales tax returns are filed with the Louisiana Department of Revenue. Here’s how:

  1. Collect sales tax from customers.
  2. File your sales tax return online.
  3. Remit the collected taxes to the state.

Conclusion

Understanding and complying with sales tax regulations in New Orleans is essential for any business operating in Louisiana. Use this guide to navigate the complexities of sales tax and ensure your business remains compliant.

Sales Tax Guides by State

Our sales tax guides provide an overview of sales tax rates, nexus thresholds, taxable and nontaxable items, along with other valuable tax knowledge for every U.S. state.