Louisiana sales tax rate highest in the US, report says

    A new study confirms what many have long known: Louisiana residents pay more in sales taxes than residents of any other state in the country. According to the Tax Foundation, a nonprofit tax policy research organization, the combined average state and local sales tax in Louisiana is 9.99%. Though California’s state tax rate is technically higher, the study measures the combined average state and local sales tax.

    The state with the second-highest combined state and local rate is Tennessee, at 9.45%; followed by Arkansas, 9.3%; Alabama and Washington, D.C., both at 8.9%. Alaska has the lowest combined sales tax rate at 1.8%; followed by Hawaii, 4.3%; Wisconsin and Wyoming, both at 5.4%; and Maine, 5.5%.

    Louisiana has never fared well on the list. But it fell even lower this year, following two special sessions during which lawmakers passed more than $1.5 billion in new taxes—most of which is a temporary one-cent sales tax increase—to help fill a revenue shortfall.

    The study points out that sales tax differentials can affect where consumers shop and can also impact decisions about where companies choose to locate.

    Read the complete study.

     

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