Among states with combined state and local sales tax Louisiana ranks at the top of the list at 9.55%. That’s according to Tax Foundation’s state and average local sales tax rates for July 2022. Tax Foundation’s Janelle Fritts said it’s a distinction that most people do not find flattering.
“Louisiana has held the top slot in terms of sales taxes since July of 2021 at 9.55%. That’s not necessarily where you want to be number one, but Louisiana is holding on tight to that position,” said Fritts.
Fritts said the most likely reason Louisiana’s local sales taxes are higher than others is due to the fact that there isn’t as much control over the local tax structure compared to other states.
“In general US states tend to rely on sales taxes for about 23% of those state and local tax collections, but in Louisiana that gets closer to about 40% which is pretty high for states,” said Fritts.
But Fritts said consumption taxes, like a sales tax, tend to be less economically harmful than an income tax or a corporate income tax, but when a sales tax is high it still can be burdensome.
“Especially when goods are so expensive like right now. If people are in cities that are close to borders of different states they may think about shopping across state lines,” said Fritts.
In July of 2025, the state sales tax will drop from 4.45% to 4%.
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