Louisiana Sales & Use Tax 2025
Louisiana Sales Tax Guide for SaaS and E-Commerce Businesses 2025
2025-09-12
Louisiana imposes a Sales & Use Tax on most goods and services, including SaaS, digital products, and tangible goods. Beginning January 1, 2025, SaaS and cloud software are explicitly taxable. The base rate is 5% statewide, with additional parish/municipal sales taxes ranging from 0% to 7%.
This guide explains Louisiana’s SaaS and e-commerce taxability, nexus thresholds, filing rules, and how to register.
Last updated: September 2025
Quick Reference: Louisiana Sales & Use Tax (2025)
| Topic | Details |
|---|---|
| State base rate | 5% (What is the state sales tax rate?) |
| Local rates | 0%–7% depending on parish or municipality |
| Economic nexus threshold | $100,000 in gross revenue annually (Remote Sellers FAQ) |
| SaaS / Digital products | Taxable. (Prewritten software FAQ) |
| Filing frequency | Monthly or quarterly (assigned by LDR or the Remote Sellers Commission) |
| Filing due date | 20th of the month after the reporting period (General Sales & Use Tax) |
| Registration portal | Louisiana Sales & Use Tax Commission for Remote Sellers |
| Tax agency | Louisiana Department of Revenue |
SaaS & Software Taxability in Louisiana
Louisiana explicitly taxes prewritten computer software access services (SaaS) and digital products beginning Jan 1, 2025:
- SaaS / Prewritten software access: taxable as “prewritten computer software access services.” (FAQ)
- Digital products: taxable categories include audiovisual works, audio works, digital books, digital codes, apps/games, and periodicals/discussion forums. (FAQ)
- Subscriptions, streaming, and licenses: taxable whether permanent or subscription-based.
- Maintenance, updates, and support: taxable when bundled with digital software or SaaS.
- Custom software: Now taxable. (FAQ)
Exclusions & Exemptions
- Exemptions: Certain uses (e.g., exclusive commercial production, institutional/healthcare/financial services). (FAQ)
- Excluded products: Some categories remain excluded. (FAQ)
E-Commerce & Tangible Goods in Louisiana
Louisiana’s sales tax applies broadly to tangible personal property (TPP) and e-commerce transactions:
| Category | Taxable? | Notes |
|---|---|---|
| Tangible goods | Yes | Clothing, electronics, furniture, and other tangible property are taxable at 5% + parish/municipal rate. (General Sales & Use Tax) |
| SaaS & software | Yes | Prewritten computer software access services (SaaS) taxable starting Jan 1, 2025 |
| Digital products | Yes | Streaming, e-books, apps, games, subscriptions, digital codes |
| Exemptions | Some | Food for home consumption and prescription drugs are exempt (FAQ) |
| Services | Some | Professional services (legal, medical, accounting) remain exempt |
Louisiana uses a destination-based sourcing system, meaning tax is calculated based on the customer’s location, not the seller’s.
Who Must Collect Louisiana Sales Tax?
You must register if you meet any of these:
- Physical nexus: Office, employees, contractors, or inventory in Louisiana.
- Economic nexus: More than $100,000 in gross revenue into Louisiana (200 transaction rule removed). (Remote Sellers FAQ)
- Marketplace facilitator rules: Platforms like Amazon, Shopify, and Etsy must collect Louisiana sales tax on behalf of sellers. Marketplace sales also count toward your nexus threshold. (Remote Sellers FAQ)
Filing & Due Dates
- Filing frequency: Assigned by the Louisiana Department of Revenue or Remote Sellers Commission.
- Due date: Returns and payments are due by the 20th of the month after the reporting period.
- Example: April sales → file by May 20.
File via Louisiana Remote Sellers Commission or LDR General Sales & Use Tax portal.
Penalties & Interest
- Late filing penalty: Up to 5% per month (max 25%).
- Late payment penalty: 0.5% per month (max 10%).
- Interest: Accrues daily on unpaid balances.
See Louisiana Department of Revenue – Penalties.
How to Register for Louisiana Sales Tax
- Determine nexus (physical or $100,000 revenue economic nexus).
- Register online via the Louisiana Remote Sellers Commission.
- Collect the correct rate (5% state + parish/municipal add-ons).
- File returns on your assigned schedule.
- Remit payments by the due date through the LDR or Remote Sellers portals.
FAQs: Louisiana Sales Tax
Is SaaS taxable in Louisiana?
Yes. SaaS (prewritten computer software access services) is taxable starting Jan 1, 2025.
Is custom computer software taxable?
Yes. Custom software is taxable.
Are there exemptions for digital products?
Yes. Limited exemptions exist, see Are there any exemptions for digital products?
What is Louisiana’s economic nexus threshold?
Remote sellers must register once they exceed $100,000 in gross revenue.
Does Louisiana have local sales tax?
Yes. Parishes and municipalities may add 0%–7% to the statewide 5% rate.
Are tangible goods sold online taxable in Louisiana?
Yes. Most physical goods shipped to Louisiana addresses are subject to 5% state tax plus local parish/municipal tax. (General Sales & Use Tax)
Do marketplace facilitators have to collect Louisiana sales tax?
Yes. Marketplaces such as Amazon, Etsy, and Shopify must register and collect Louisiana sales tax if they exceed $100,000 in sales. (Remote Sellers FAQ)
Official Louisiana Resources
- Louisiana Dept. of Revenue — General Sales & Use Tax
- What is the state sales tax rate?
- What are prewritten computer software access services?
- What digital products are subject to sales and use?
- Are digital products subject to sales and use tax?
- Are there any exemptions for digital products?
- What digital products are excluded from taxation?
- Is custom computer software subject to tax?
- Louisiana Remote Sellers FAQ
- Remote Sellers Information Bulletin No. 20-002 (PDF)
- Act 216 of the 2020 Regular Session (PDF)
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