Louisiana’s tax free weekend is this weekend, Friday, August 4 — Saturday, August 5. But it’s not really a tax free weekend, despite what many people might think. It’s actually a tax reduction holiday. It began at 12:00 a.m. on Friday and will end Saturday at 11:59 p.m. This means the annual sales tax holiday is going on right now.
The Following Qualify for Lower Taxes in Louisiana This Weekend
This weekend, the first $2,500 in the sales price of any eligible item is going to be subject to only a 3 percent sales tax. This means that Louisiana isn’t going completely tax free, but they are offering a lower tax rate that applies to more items. The state’s sales tax rate is typically 5 percent.
The tax holiday in Louisiana is far more expansive, with many more items qualifying than in most states. Typically, a state limits qualifying items to items related to school supplies or clothing. But in Louisiana, any purchase by a consumer of “tangible personal property” qualifies, up to $2,500 per item. This means that if you bought something for $2,800, the first $2,500 would only get a 3 percent tax and the last $300 would be taxed at 5 percent.
The Following Items Do NOT Qualify This Weekend
The following items do not qualify for a lowered sales tax this weekend:
- Any items that are being purchased for business purposes, a trade, or a profession do not qualify.
- Vehicles subject to license and title
- Meals that are purchased to be eaten on the premises, including to-go orders
- Local sales taxes may still apply (the reduction only applies to state taxes)
- Lease or rental of tangible personal property
- Taxable services such as hotel stays, amusement park tickets, recreational and athletic admissions
- Repairs to personal property
- Laundry, cleaning, pressing, and dyeing services
- Vehicle parking
- Cold storage space
- Printing services
- Telecommunication services
Louisiana Has a Second Tax Holiday Sept. 1-3
- Louisiana quickly follows up this sales tax holiday with a second one in September. But this second one is for a very different purpose. It’s a Second Amendment Sales Tax Holiday. This means that eligible purchases of firearms, ammo, and hunting supplies will be exempt from local sales taxes, and subject to a state sales tax of 3 percent.
For more information, see Louisiana’s website here.