Last checked Nov 10, 2026
Buying a car in Louisiana
The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Louisiana sources.
- State tax on vehicles
- 5%
- Trade-in lowers tax
- Yes
- Doc fee limit
- $436
- Deadline to title or register
- 40 days
details below
Sales tax on a car in Louisiana
Louisiana charges a state sales tax of 5% on vehicle purchases.
Parish and municipal sales taxes are added to the state rate and are based on where the vehicle is domiciled.
The Office of Motor Vehicles collects state and local tax when the vehicle is titled. The 5% state rate took effect January 1, 2025.
Does a trade-in lower the tax?
Tax is assessed on the sale price minus a qualifying trade-in from a dealer purchase. The trade-in must be titled in the buyer's name, and the credit cannot exceed the price of the vehicle bought.
Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,000. Without the trade-in it would be $1,500. Local taxes and fees are extra.
Dealer doc fees in Louisiana
The maximum documentary fee under La. R.S. 6:969.18(A)(2) is $436 for calendar year 2026. The base amount of $425 is adjusted each year for inflation, by no more than 3%, and published by the Louisiana Motor Vehicle Commission.
Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.
Title and registration
Titles and registrations are handled by the Louisiana Office of Motor Vehicles. Sales tax on a purchased vehicle is due within 40 days of the purchase or delivery date, after which penalty and interest apply. Title and registration are not issued until the tax is paid.
Also worth knowing
- A dealer that charges the documentary fee must disclose in writing that it is not a mandatory state fee.
- A lender may charge a separate documentation fee of up to $35 on a motor vehicle credit transaction.
Sources
- Louisiana Department of Revenue: What is the sales tax rate in Louisiana? (revenue.louisiana.gov)
- Louisiana Revised Statutes 6:969.18: Documentation and compliance fees (legis.la.gov)
- Louisiana Motor Vehicle Commission: Bulletin B-2026-001, 2026 Calendar Year Documentary Fee (lmvc.la.gov)
- Louisiana Office of Motor Vehicles: Policy 47.00, Sales Tax on Vehicle Transfers (public.powerdms.com)
- Louisiana Office of Motor Vehicles: Policy 47.01, Trade-Ins (public.powerdms.com)
- Louisiana Office of Motor Vehicles: New Title and Registration (expresslane.la.gov)
Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.
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