Free guide for contractors
Do contractors charge sales tax in Louisiana?
General information, not tax advice. Tax rules change and depend on the details of each job. Confirm how they apply to your business with your accountant or the state's revenue department before relying on them.
LA Louisiana
Usually no tax on the invoiceNo, for work on real property. Louisiana contractors are presumed to buy materials as consumers, and labor on immovable property is generally untaxed.
Materials sold to a Louisiana contractor for building, altering or repairing immovable (real) property are presumed to be sales to the contractor as consumer, so the contractor is liable for the tax. A signed writing showing that title passed first can rebut that presumption.
Labor to construct, install, remodel or repair immovable property is generally not taxable; labor on movables is. Repairs and maintenance to a home are not taxable, but repairs to movables in a home are.
The state rate rose to 5% on January 1, 2025, until December 31, 2029. Contracts bid before December 4, 2024 may claim the old rate on Form R-1075 under R.S. 47:305.11. Each parish has one local collector, and the state's lookup covers any Louisiana address.
It turns on: whether the work is on immovable property or on movables; whether title to materials passed to the customer before installation, shown in a signed writing.
Watch out for
- A proposed change to LAC 61:I.4372 would make collecting tax from the customer create a presumption about what the parties intended (LDR Notice of Intent, July 10, 2026). It is a proposal, not the current rule.
“Repairs and maintenance to immovable property, such as a residence, are not taxable.”LDR Tax Reform FAQs (9.23.25), Q7