WGNO

Study: Louisiana buyers pay more in sales tax than any other state

(KLFY) — According to a study released Tuesday, Louisiana has the highest average sales tax of any state in the union.

The non-profit Tax Foundation, which has been tracking tax rates since 1937, reports that Louisianans pay an average combined sales tax of 9.55%, just ahead of Tennessee at 9.548%.

Louisiana has a statewide sales tax of 4.45%. Municipal governments in Louisiana are allowed to collect local sales taxes, so the total sales tax rate varies between cities, parishes (counties nationwide) and special districts. These rates are weighted by population to compute an average local tax rate.

According to the study, the lowest sales tax rate in Louisiana is 4.45% in four cities that do not levy a local sales tax, Creole, Cameron, Grand Chenier and Hackberry. The highest sales tax is 12.95% in two cities, Monroe and Sterlington.

The sales tax rate in Lafayette is 8.45%, and consists of the 4.45% state sales tax and 4% Lafayette city tax.

Here are some local tax rates, excluding special tax districts, according to the Louisiana Association of Tax Administrators:

Nationwide, the five states with the highest average combined state and local sales tax rates are Louisiana, Tennessee, Arkansas (9.46%), Alabama (9.25%) and Oklahoma (8.98%). The five states with the lowest average combined rates are Alaska (1.76%), Hawaii (4.44%), Wyoming (5.36%), Wisconsin (5.43%) and Maine (5.50%).

California has the highest state-level sales tax rate at 7.25%, but has an average local tax rate of 1.57%, for a total of 8.82%. Four states tie for the second-highest statewide rate, at 7%: Indiana, Mississippi, Rhode Island and Tennessee.

Five states do not have statewide sales taxes: Alaska, Delaware, Montana, New Hampshire and Oregon. Of these, only Alaska allows localities to charge local sales taxes.