Louisiana SaaS sales tax at a glance
| Detail | Value |
|---|---|
| Is SaaS taxable? | Taxable |
| Downloaded software | Taxable |
| Base state sales tax rate | 5% |
| Typical combined rate | 5% to 11.45% |
| Local tax rates? | Yes |
| Economic nexus threshold | $100,000 in sales |
| Reference period | The previous or current calendar year |
| Revenue authority | Louisiana Department of Revenue |
Is SaaS taxable in Louisiana?
The rule
Louisiana treats SaaS as a prewritten computer software access service, taxed on the full charge at the state rate plus the parish rate.
The main exception
The business exemption is narrow: software is exempt only when used directly to produce taxable goods or services, so CRM, accounting, project management and collaboration tools stay taxable.
What to do
Register with the Remote Sellers Commission and charge the combined state and parish rate for each customer's delivery address on one monthly return.
Is your product taxable in Louisiana?
Whether a particular product is taxed in Louisiana can depend on two things: how the software reaches the customer and how you write the invoice.
Does it matter how the software reaches the customer?
In Louisiana, downloaded software is taxable. Software counts as downloaded when the customer installs a copy, such as a desktop app, an agent or an offline client, even if most of the product runs online.
Does it matter how you write the invoice?
In Louisiana, setup, implementation and training fees are not taxable if separately stated. Listing them on their own invoice lines, rather than inside one software price, is what lets them be treated separately.
How are other software products and services taxed in Louisiana?
SaaS rarely ships alone. This is how Louisiana treats the products and charges that usually sit next to it on an invoice.
| Product or charge | Treatment |
|---|---|
| Downloaded software | Taxable |
| Custom software | Taxable |
| Cloud infrastructure and platforms (IaaS, PaaS) | Not taxable For cloud storage and web hosting |
| AI tools and API access | Taxable |
| Digital goods (e-books, music, video) | Taxable |
| Maintenance and support | Taxable Unless it is support only and separately stated |
| Setup, implementation and training | Not taxable If separately stated |
Does Louisiana tax B2B and B2C SaaS differently?
No. Louisiana treats SaaS the same way for business and consumer buyers.
How much sales tax do you charge on SaaS in Louisiana?
SaaS is taxed at a base rate of 5%, and the typical combined rate is 5% to 11.45%.
Do cities or counties tax SaaS differently?
No. Cities and counties follow the state's rules for SaaS, so whether it is taxed does not change from one address to another.
General sales tax rates, including any local rates, are in our Louisiana sales tax guide.
Do you need to register for sales tax in Louisiana?
Physical and economic nexus
Registration follows nexus. Once you have nexus in Louisiana and sell something taxable there, you need to register. Nexus comes from a physical presence, such as an office, staff or inventory in the state, or from passing an economic threshold.
In Louisiana, the economic nexus threshold is $100,000 in sales over the previous or current calendar year. Exempt sales still count toward it. Our Louisiana nexus guide covers the rules in full.
Which address sets the rate
For remote sellers, the rate is based on where your customer is, not where your business or servers are. Louisiana has no multiple points of use certificate, so the full charge is taxed at the customer's location.
Buyers who do not pay tax
Some buyers can give you a certificate instead of paying tax. In Louisiana, that includes resellers, government agencies, FDIC-insured banks, licensed health care providers and businesses using the software directly to produce taxable goods or services. Collect the certificate at the time of sale and keep it, because in an audit it is the only thing standing between you and the tax.
How to register, collect and file in Louisiana
Register
If you need to register, do it with the Louisiana Department of Revenue through LaTAP, or the Louisiana Sales and Use Tax Commission for Remote Sellers portal (remotesellersfiling.louisiana.gov) if you have no physical presence in Louisiana. Note your account number and the filing frequency you are given, since both decide when and how you file.
Collect the right amount
Charge tax only on what Louisiana taxes. Collecting tax that is not owed creates its own refund and audit problems.
- List services on their own invoice lines, so each charge is taxed on its own terms.
- Describe each product on the invoice the way it actually reaches the customer: online access, a download or something shipped.
- Recheck the treatment whenever you add a desktop app, a hardware option or a new add-on, since each can change what is taxable.
File and keep records
Your filing frequency is assigned when you register: monthly for remote sellers filing through the Remote Sellers Commission; in-state dealers may be assigned a longer period depending on how much tax they collect. Returns are due by the 20th of the month after each period ends.
You must file a return for every period, even when no tax is due.
Keep invoices, exemption certificates and returns for at least three years after the end of the year the tax was due. That paperwork is what decides the taxable amount if you are audited years later.
What should SaaS businesses watch when selling in Louisiana?
Past sales where no tax was charged
If you should have been collecting and were not, the Louisiana Department of Revenue can assess the unpaid tax plus a late-filing penalty of 5% for each 30 days (up to 25%), a late-payment penalty and interest.
A voluntary disclosure agreement can reduce penalties if you come forward first. Work out which past sales were taxable before you come forward, so you know the size of the exposure.
Rule changes worth tracking
Nothing enacted or pending changes how Louisiana taxes SaaS.
The rules verified date at the top of this page shows when these rules were last checked.
How does Galvix help SaaS businesses manage Louisiana sales tax compliance?
We handle this
Sales tax in Louisiana is one line in a much larger problem. Most SaaS companies sell into 30 or 40 states, each with its own answer, threshold and filing calendar.
- We map each of your products and add-ons against every state's rules, including the ones that can change the answer in Louisiana.
- We watch your sales against every threshold and tell you before you cross one, not after.
- We handle registrations wherever you need one.
- We file and remit on each state's schedule, zero returns included.
- We collect and store exemption certificates so they are there when an auditor asks.