HomeWhat is the sales tax when a car is transferred into Louisiana from another state?
Wiki User
Answered 2010-11-18 21:01:53
There is no sales tax involved in transferring a car. However, If you purchase it in Louisiana, you have to pay their sales tax.
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The state sales tax rate in Louisiana is 5.000%. With local taxes, the total sales tax rate is between 5.000% and 12.000%.
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Many states (California and Louisiana among them) have "use taxes" equal to the sales tax if you buy a car out of state and want to register it in your home state. This is old-fashioned protectionism for the state's car dealers and the state, who would otherwise lose sales (and taxes) because people bought cars in another state where the prices and taxes were lower. Some states reduce the amount to less than the total sales tax, but will still charge higher fees to register out-of-state vehicles.
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