Louisiana (LA) Vehicle Sales Tax & Fees [+ Calculator]
If you’re planning to purchase a vehicle in Louisiana, then you will need to be prepared to pay the state sales tax.
The state sales tax in Louisiana is 5% statewide. Counties can charge additional local tax, making the average sales tax 12%
Because of this potential expense, many people want to know if tax exemptions or buying a car out of state can help.
Here, we break down everything to know about sales tax in Louisiana.
Key Takeaways
- Statewide sales tax in Louisiana is 5%.
- Counties may also charge their own sales tax, making the average vehicle sales tax in the state 12%.
- The trade-in value of a car and dealer incentives or rebates are not taxed.
- In addition, you can expect to pay DMV fees of around $100 and dealership fees up to $200.
Understanding Car Sales Tax in Louisiana Video
How Much Is the Car Sales Tax in Louisiana?
- Statewide sales tax: 5%
- Local/ county sales tax: 4.45-8.95%
- Average combined sales tax rate: 12%
The current statewide sales tax in Louisiana is 5%. However, rates can vary depending on the location where the vehicle is purchased in the state.
An extra local or county sales tax is added to the base 5% state tax. Local tax rates can go up to 8.95%, with an average of 5.084%.
The max combined sales tax you can expect to pay in Louisiana is 12.95%, but the average total tax rate in Louisiana is 12%.
How to Calculate Louisiana Sales Tax on a Car
To calculate the sales tax on your vehicle, find the total sales tax fee for the city and/or county. The minimum is 5%. Multiply the vehicle price (after trade-ins and/or incentives) by the sales tax fee.
For example, imagine you are purchasing a vehicle for $45,000 with the state sales tax of 5%. You trade in a vehicle for $5,000 and get an incentive for $2,000. Louisiana does not charge tax on trade-ins and rebates, so you would subtract $7,000 from the car cost, to get $38,000, which is the taxable amount.
In this example, multiply $38,000 by .05 to get $1,900, which makes the total purchase price, $39,900.
Calculate Car Sales Tax in Louisiana Example:
- Initial Car Price: $45,000
- Sales Tax Rate: 5%
- Trade-In Amount: $5,000
- Rebate/Incentive Amount: $2,000
Sales Tax = ($45,000 – $5,000 – $2,000) * .05
Sales Tax = $1,900
Remember that the total amount you pay for a car (out the door price) not only includes sales tax, but also registration, and dealership fees.
Louisiana Vehicle Sales Tax Calculator
Do I Have to Pay Sales Tax on a Used Car?
Yes. The 5% sales tax also applies to used vehicle sales.
Which Parish Has the Highest Tax?
The place with the highest tax is Quachita, with Sterlington city having the highest tax rate in the state with 12.95%.
Which Parish Has the Lowest Tax?
The parish with the lowest tax is Cameron. There is no local or city tax in Cameron, so vehicle sales are taxed at the statewide rate of 5%.
Car Sales Tax for Trade-Ins in Louisiana
You do not have to pay a sale tax on the trade-in on your vehicle in the state of Louisiana.
In other words, when calculating sales tax, be sure to subtract the trade-in amount from the car price.
Let’s say that you’re purchasing a new car for $45,000, and your trade-in is valued at $12,000. This would put your new vehicle purchase price at $33,000, which is the taxable amount.uld put your new vehicle purchase price at $40,000, which is the taxable amount.
Car Sales Tax on Private Sales in Louisiana
The 5% state sales tax applies to private vehicle sales.
As an example, let’s say that you are going to purchase a used car for $22,000. Then you will have to pay 5% of that amount or $1,100 to the state. This would bring the total amount to $23,100.
Tax on Rebates & Dealer Incentives
The state of Louisiana does not tax rebates and dealer incentives. In other words, be sure to subtract the incentive amount from the car price before calculating the sales tax amount.
As an example, let’s say you want to purchase a new truck for $46,000, and the dealer provides a $4,000 rebate. You do not have to pay a sales tax on the $4,000 rebate. Therefore, the taxable amount is $42,000.
Louisiana DMV & State Fees
The state of Louisana charges the following DMV fees:
- Plate Registration Fee: $20.00 – $82.00 (based on the value of the vehicle at the time of purchase)
- Title Fee: $18.50
- Plate Transfer fee: $3
Louisiana Dealership Fees
- Doc. Fee: ~$155 ($200 Statewide Limit)
The average dealership fee in Louisiana is about $155. These are the fees that you will have to pay for the dealership to create the documents which need to be submitted to the state to finalize the sale of the vehicle.
When Sales Tax Is Exempt in Louisiana
You do not have to pay sales tax if the vehicle is registered in a different state within 30 days of purchase.
Also, vehicles that have been received as a gift is exempt from state sales tax.
Lastly, military personnel who paid similar taxes in another state may be exempt..
How Are Antique Cars Taxed in Louisiana?
Antique vehicles (over 25 years old) are exempt from Louisiana state and local sales tax.
However, this only applies if they are valued at less than $10,000 and not used commercially. Additionally, antique car buyers must pay at $1,000 licensing fee when purchasing one.
Louisiana EV Rebates & Incentives
Louisiana EV vehicles that are purchased in the state are eligible for federal tax credits, which can range from $2,500 to $7,500.
