How Much Is Business Tax in Louisiana?

Louisiana Tax Overview

• Louisiana’s sales tax rate is 4.45 percent for retail sales.
• The state also has a use tax, complementary to the sales tax.
• The sales and use tax rate for taxpayers change often.

Small Business Tax in Louisiana

• Louisiana collects a state corporate income tax at a maximum marginal rate of 8%.
• Small businesses might use tax credits to offset their tax obligations.
• LLC profits aren’t taxed at the business level; owners pay self-employment and state income tax.

Sales Tax Information

• Small businesses need to collect and pay sales tax for physical products or services.
• Use the Sales Tax Calculator to determine your exact sales tax rate and total purchase amount.
• The city of Sterlington has the highest combined sales tax rate in Louisiana at 12.95%.

Compliance Guidelines

• To stay compliant, businesses must apply for a sales tax account and obtain a sales tax permit.
• Filing frequency for returns and tax payments can vary based on revenue, either monthly, quarterly, or annually.

Additional Tax Details

• Small business owners in Louisiana may also pay property taxes based on location and property value.
• Louisiana has an individual income tax with rates from 2% to 6%.
• Some cities in Louisiana levy additional local sales taxes up to 7%.