Congratulations Louisiana, we’ve done it. We’re finally first in something.
Louisiana has the highest combined state and local sales tax rate in the country. The Legislature and John Bel Edwards worked very hard to achieve this distinction.
According to the Tax Foundation, here are the top five states in the union when it comes to sales tax.
It should be noted that Tennesse and Washington do not have an income tax.
Louisiana’s neighboring states have significantly lower sales taxes. Texas (which doesn’t have an income tax) has an 8.19% sales tax rate and Mississippi has a 7.07% sales tax rate.
The most recent sales tax hike came this past March when the Louisiana Legislature approved and John Bel Edwards signed into a law a 1 penny sales tax hike. Louisiana’s sales tax consists of a state tax rate of 5% and a local sales tax rate of 4.98%. The local sales tax rate is the second-highest in the country.
Sales taxes tend to hit the poor the hardest because poor people spend nearly all of their income. Louisiana has state sales tax exemptions for things such as food, clothing, and medicine. But local and parish governments often charge sales on those essential items.