Everything You Need to Know About Louisiana’s New Sales Tax

Back in 2016, the state of Louisiana enacted a temporary 1% increase to the state sales tax that was set to expire on Saturday, June 30, 2018. However, the tax proved to only be mostly temporary, as the state legislature voted to keep part of it. The new tax will be .45 percent of the old tax, which translates to a whopping .55 percent savings for Louisiana residents.

The total state sales tax now stands at 4.45% in addition to local city and parish taxes, meaning Louisiana’s reputation as having the highest sales tax in the nation is still intact.

We’re #1, y’all!

So just how much does this windfall of tax savings translate to in actual dollars? Let’s take a look.

To determine the actual sales tax, we have to factor in local taxes, which vary by city. We’ll focus on Lake Charles, Lafayette, and New Orleans.

A Pound of Boudin - $6.24

Lake Charles
Old sales tax - 67 cents
New sales tax - 64 cents
Total savings: 3 cents

Lafayette
Old sales tax - 56 cents
New sales tax - 53 cents
Total savings: 3 cents

New Orleans
Old sales tax - 62 cents
New sales tax - 59 cents
Total savings: 3 cents

Boudin prices vary pretty wildly, but assuming a reasonable $6.24 per pound, you’ll save 3 cents this year over last year. That means that if you eat a pound of boudin once a week for the year, you’ll be able to buy a glass or two of sweet tea with your $1.78 savings.

Crunchy Taco - $1.19

Lake Charles
Old sales tax - 13 cents
New sales tax - 12 cents
Total savings: One penny

Lafayette
Old sales tax - 11 cents
New sales tax - 10 cents
Total savings: One penny

New Orleans
Old sales tax - 12 cents
New sales tax - 11 cents
Total savings: One penny

If you eat one taco every day for the entire year, you’ll save $2.39 over last year’s prices, although these savings will likely be offset somewhat by an increase in your household plumbing expenses.

Live Crawfish - $15 (10 pounds at $1.50/lb)

Lake Charles
Old sales tax - $1.61
New sales tax - $1.53
Total savings: 8 cents

Lafayette
Old sales tax - $1.35
New sales tax - $1.27
Total savings: 8 cents

New Orleans
Old sales tax - $1.50
New sales tax - $1.42
Total savings: 8 cents

Depending on the time of year, your location, and who you’re buying your crawfish from, the price can go up or down, but $1.50 seems like a respectable average. If you have three crawfish boils next year, you’ll save one whole quarter, which will buy you less than half a Coke at most vending machines. Congrats!

Pumpkin Spice Latte - $4.95

Lake Charles
Old sales tax - 53 cents
New sales tax - 50 cents
Total savings: 3 cents

Lafayette
Old sales tax - 45 cents
New sales tax - 42 cents
Total savings: 3 cents

New Orleans
Old sales tax - 50 cents
New sales tax - 47 cents
Total savings: 3 cents

You can expect to save three cents on your pumpkin spice lattes as soon as they go on sale this year. Assuming you have one a day from October through December, you’ll save exactly $2.51, which you can put toward a can of Community Coffee to brew at home like a normal person.

Ford F-150 - $27,705

Lake Charles
Old sales tax - 2,978.29
New sales tax - 2,825.91
Total savings: $152.38

Lafayette
Old sales tax - 2,493.45
New sales tax - 2,341.07
Total savings: $152.38

New Orleans
Old sales tax - 2,770.50
New sales tax - 2,618.12
Total savings: $152.38

Now we’re talking! With a bigger ticket item like a new truck, you’ll actually start seeing the savings. If you held off buying that F-150 last year, smart move! You’ll save $152.38 by buying it this year, which might almost fill up your tank after the next gas tax increase.

Now go out there and save, Louisiana!