BATON ROUGE — For the third year in a row, Louisiana has the highest combined sales tax rate in the country, according to new data from the Tax Foundation. The ranking is driven not just by the state rate, but by layers of local taxes that push the total well above 10% in many parts of the Baton Rouge area.
The state’s base sales tax rate is 5%, but when parish, city, and special taxing district rates are added, Louisiana’s average combined rate rises to about 10.1%, the highest nationwide. In some parts of the state, consumers are paying 11%, 12%, or even more on everyday purchases.
Louisiana’s sales tax system
Louisiana’s sales tax system is also among the most complex in the country. Rates can vary not just by parish or city, but by ZIP code, street, or even individual shopping centers, depending on which taxing districts apply.
Lawmakers increased the state sales tax in 2024 as part of a broader tax overhaul aimed at offsetting income tax cuts. However, Louisiana’s long-standing reliance on local sales taxes, particularly economic development districts, means the impact is felt unevenly across the state.
Unlike some states that cap or limit local sales taxes, Louisiana allows multiple layers of local authorities to stack taxes on top of one another. As a result, two shoppers just miles apart can pay very different tax rates on the same item.
Sales Tax Handbook data shows that some Louisiana communities approach or exceed 12% in combined sales tax, with the highest rates concentrated in specific cities and special districts. While these districts often target commercial corridors rather than residential neighborhoods, the taxes apply to everyone who shops there.
Baton Rouge area sales tax rates
In East Baton Rouge Parish, combined rates reach 12.5% in parts of Baton Rouge, making it one of the highest-taxed urban areas in the state. Livingston Parish tops out around 11.5%, particularly in fast-growing retail corridors like Juban Crossing.
Several parishes in the Florida Parishes region, including Tangipahoa, St. Helena, and East Feliciana, reach 11% in certain towns and municipalities. Smaller communities are not immune. St. Francisville in West Feliciana Parish reaches 10.5%, while parts of Assumption Parish and West Baton Rouge Parish climb above 10.5% as well.
Highest tax burden in Louisiana
While still well above the national average, Baton Rouge does not have the highest sales tax rate in the state. Portions of north Louisiana exceed 13%.
Monroe and Sterlington, both located in Ouachita Parish, have combined sales tax rates totaling 13.5%, among the highest in Louisiana.
In St. Landry Parish, Opelousas and Sunset have sales tax rates totaling 12.55%. And in Calcasieu Parish, Westlake and two different areas of Sulphur have a sales tax rate of 12.75%.
How other states rank
Ranked behind Louisiana is Tenneesee with an average sales tax rate of 9.61%. The biggest difference between the two states, Tennessee does not have an income tax.
Washington ranks third with a sales tax rate of 9.51%. Neighboring Arkansas ranks fourth with a 9.46% tax rate, and Alabama ranks fifth with a 9.46% tax rate. Texas’ tax rate, 8.20%, ranks 14th while Mississippi’s 7.06% tax rate ranks 23rd in the country.
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