Expect to Pay More Taxes in Louisiana in 2025

On January 1st, sales taxes in Louisiana went up. In 2025, the state's sales tax went up from 4.45% to 5%. According to reports, that increase will make Louisiana's sales tax the highest in the nation. 5% may not seem a lot but when you combine it with the local parish/city sales tax, that number can go up pretty quickly. In fact, according to some reports, when combining the 5% tax with local taxes, Louisiana residents will now pay as much as 11.45% sales tax on items in the state - which can add up pretty quickly when making big purchases or buying groceries.

What will the sales tax be in Shreveport, Bossier and other parts of the state be in the new year? Let's take a look.

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New Sales Tax in Shreveport, Louisiana

With the 5% state tax and the 4.6% Shreveport sales tax, the new average sales tax rate for 2025 is 9.6%. We're calling it an 'average sales tax' because in some parts of town, the city/parish tax is higher than others. According to salestaxstates.com, the sales tax in 71104 is higher than 71102 zip code.

New Sales Tax in Bossier City, Louisiana

With the 5% state tax and the 5% Bossier City sales tax, the new average sales tax rate for 2025 is 10%. We're calling it an 'average sales tax' because in some parts of town, the city/parish tax is higher than others.

Why Did Taxes Go Up in Louisiana?

House Bill 10 (you can read the full thing here) is an all encompassing tax bill that was passed and signed into law by Governor Landry. The bill updated the sales tax rate, tax credits, tax exclusions, rebates and a whole lot more. Here are the two big notes from House Bill 10:

• Lowers personal income taxes to a flat rate of 3%
• Sets the state’s sales tax rate at 5.0% for 5-years, then reduces it to 4.75%

However HB10 wasn't the only tax law passed in 2024. There was HB2, 3, 5, 7 and 8. Those included the dropping of corporate taxes to a flat rate of 5.5% while eliminating many credits, deductions and exemptions; and "modernizing" digital taxes including upping sales tax on apps, streaming services and more. You can read more about what passed here.