Louisiana Tops Nation with Highest Sales Tax in 2025

(KPEL-FM) - And the beat goes on. According to a recent study by the Tax Foundation, Louisiana has the highest average sales tax of any state in the U.S.

Louisiana’s Sales Tax vs. Other States

The non-profit Tax Foundation, which has been tracking tax rates since 1937, revealed that Louisianians pay an average combined sales tax of 10.11%.

A mere two years ago, that rate was at 9.55%.

Louisiana’s 5% state tax plus a 5.11% local average brings the total to 10.11%.

Following the Bayou State with the highest average combined state and local sales tax rates are Tennessee (9.61%), Arkansas (9.48%), Washington (9.47%), and Alabama (9.44%).

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The five states with the lowest average combined rates are Alaska (1.82%), Hawaii (4.50%), Maine (5.50%), Wyoming (5.56%), and Wisconsin (5.72%).

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Municipal governments in Louisiana are allowed to collect local sales taxes, so there is a variance in the total sales tax rate throughout cities in the state, parishes, and special districts. These rates are weighted by population to come up with the average local tax rate.

Which Louisiana Cities Pay the Most (and Least)?

According to the study mentioned above, four cities in Louisiana do not levy a local sales tax -- Creole, Cameron, Grand Chenier, and Hackberry.

Sterlington in north Louisiana holds the state’s highest rate at 13.5%.

Why Louisiana’s Tax Rate Went Up in 2025

We're paying even more taxes in Louisiana because our state is the latest to raise its sales tax rate. Back in January, as you may recall, the state rate increased from 4.45 to 5.0 percent, reversing a prior reduction in July 2018.

The rate increase was part of a broader tax reform package led by Governor Jeff Landry that yielded a 3 percent flat individual tax income, a 5.5 percent corporate income tax, full expensing, and franchise tax repeal.