Louisiana Vehicle Sales Tax & Fees

Louisiana Sales Tax

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 can affect the final purchasing price of your vehicle. Because of this potential expense, many people want to know if tax exemptions or buying a car out of state can help.

Here, we will look at the current state sales tax and other fees associated with purchasing a vehicle in Louisiana.

How Much Is the Car Sales Tax in Louisiana?

How Much is Louisiana Sales TaxThe current statewide sales tax in Louisiana is 4.45%. 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 4.45% 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 9.534%.

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 4.45%. 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 4.45%. 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 .0445 to get $1,691, which makes the total purchase price, $39,691.

Calculate Car Sales Tax in Louisiana Example:

  • Initial Car Price: $45,000
  • Sales Tax Rate: 4.45%
  • Trade-In Amount: $5,000
  • Rebate/Incentive Amount: $2,000

Sales Tax = ($45,000 - $5,000 - $2,000) * .0445
Sales Tax = $1,691

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 Sales Tax Calculator

Do I Have to Pay Sales Tax on a Used Car?

Yes. The 4.45% sales tax also applies to used vehicle sales.

Louisiana Highest And Lowest TaxWhich Parish Has the Highest Tax?

The parish 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 4.45%.

Car Sales Tax for Trade-Ins in Louisiana

Trade In LouisianaYou 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.

Car Sales Tax on Private Sales in Louisiana

The 4.45% 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 4.45% of that amount or $979 to the state. This would bring the total amount to $22,979.

Tax on Rebates & Dealer Incentives

Dealer Incentive LouisianaThe 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

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

Louisiana Tax ExemptionsYou 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 also exempt from state sales tax.

Louisiana EV Rebates & Incentives

Lousiana offers either 10% of the cost of the EV or $2,500 (whichever is less) as a tax credit for any electric vehicles purchased before July 1st, 2021. However, EV vehicles that are purchased in the state are eligible for federal tax credits, which can range from $2,500 to $7,500.

 

Tax information and rates are subject to change, please be sure to verify with your local DMV. 

Frequently Asked Questions

What is the sales tax on a car purchased in Louisiana?

The sales tax on a new car purchased in Louisana is 4.45%. However, local tax rates may bring that figure up to around 9%.

Do I have to pay sales tax on a used car in Louisiana?

Yes. There is a 4.45% state sales tax that applies for used vehicle purchases in the state.

Which parish in Louisiana has the highest tax?

The parish with the highest tax is Quachita, with Sterlington city having the highest tax rate in the state with 12.95%.

Which parish in Louisiana 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 4.45%.

Do I have to pay sales tax on a gifted car in Louisiana?

You do not have to pay state sales tax on any vehicle that is gifted to you.

How much is registration in Louisiana?

Vehicle registration in Louisana is based on the value of the vehicle. The registration fee can vary in cost from $20.00 up to $82.00.

Does a trade-in reduce sales tax 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.

How can I avoid paying sales tax in Louisiana?

You can avoid paying sales tax in Louisana by either receiving a vehicle as a gift or registering your vehicle in another state within 30 days of the sale.