Once upon a time, the Louisiana sales tax rate was the highest in the nation. Now, Tennessee holds the crown. But only barely.
The Louisiana Sales Tax Rate
States without a state income tax often make up their budget from other revenue sources. Sales tax is among the most common form. It’s no surprise then that these states tend to have higher sales taxes.
Tennessee holds the title for the state with the highest sales tax rate, 9.46%. Tennessee also has no state income tax. At least not in the form that most of us are familiar with. Tennessee does not tax wages, though other earnings may be taxed.
The same cannot be said for Louisiana which has the second highest sales tax rate in the country at 9.45%. Louisiana also has a 6% personal income tax rate. Unlike Tennessee, Louisiana’s state income tax applies to wages.
These percentages are the combined state and local sales tax rates. What does that mean?
The Louisiana sales tax rate statewide is 4.45%. However, depending on the location, that swells to a high water mark of 9.45%, the average combined state and local sales tax rate.
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