# Louisiana Contractor Taxes and Licensing: Sales Tax, LSLBC Licenses and Income Tax

In Louisiana, repairs and maintenance to immovable property such as a house aren't taxable, but repairs to movable property, like a refrigerator or washer, are. Contractors pay sales or use tax on materials, now at a 5% state rate since January 1, 2025, plus parish and city taxes. Government jobs are taxable too unless the agency provides Form R-1020.

## Key takeaways

- Immovable vs. movable decides it: home repairs aren't taxable; appliance and equipment repairs are.
- The state sales tax rate went from 4.45% to 5% on January 1, 2025, scheduled to run until December 31, 2029. Local taxes are added on top.
- LSLBC: home improvement registration over $7,500 up to $50,000; residential license over $50,000; commercial at $50,000 or more; commercial electrical, mechanical and plumbing over $10,000.
- Flat 3% individual income tax and flat 5.5% corporate tax from 2025; the corporation franchise tax is repealed for periods starting January 1, 2026.
- Workers' comp is required with even one employee.

## What makes Louisiana different for contractors?

Louisiana's civil law roots show up in its tax vocabulary: property is **immovable** (land and buildings) or **movable** (everything else). That line decides whether your repair work is taxed. Louisiana also just rewrote its tax code: a higher state sales tax from 2025, a flat 3% personal income tax, and the end of the corporation franchise tax. And contractor licensing runs on a ladder of dollar thresholds starting at $7,500 for home improvement.

This guide reflects official Louisiana Department of Revenue (LDR) and licensing board pages as of 2026-10-19. It's general information, not tax advice. Parish rules vary, so confirm with LDR, your parish collector and a CPA.

## Is labor taxable in Louisiana?

Labor on immovable property generally isn't. LDR says "repairs and maintenance to immovable property, such as a residence, are not taxable. However, repairs and maintenance of tangible personal property within a home (movable property) are subject to sales tax." Its examples of movable property include "refrigerators, washing machines, dryers and furniture." We found no residential vs. commercial distinction on these pages.

**Louisiana sales tax on common service jobs**

| Job | Property type | Taxable labor? |
| --- | --- | --- |
| Re-roofing a house | Immovable | No |
| Replacing a water line in a slab | Immovable | No |
| Repairing a customer's refrigerator | Movable | Yes |
| Fixing a washing machine | Movable | Yes |

_Source: LDR sales tax FAQs, verified 2026-10-19. Illustrative examples; equipment that becomes part of the building can be treated differently, so check with LDR._

## Who pays tax on materials in Louisiana?

The contractor does, as the consumer. That holds even on government work unless the agency issues **Form R-1020**. LDR told an HVAC contractor: "If the Louisiana state or municipal government agency did not provide you with the R-1020 with their contract then, yes," "you will owe the sales/use tax on the purchases," and "the fact that these purchases are for a state agency does not exempt you." Tools and consumables never qualify. For resale certificate forms, check with the department.

If you buy from out-of-state suppliers who don't charge Louisiana tax, you owe use tax; see [use tax for contractors](https://www.brix.so/learn/use-tax-for-contractors). For a multi-state comparison, read [sales tax on labor vs. materials](https://www.brix.so/learn/sales-tax-on-labor-vs-materials).

## What is the Louisiana sales tax rate now?

The state rate is **5%** from January 1, 2025, up from 4.45%, and LDR marks it "until 12/31/2029." "Sales and use taxes levied by political subdivisions of the state are in addition," so parish and city taxes stack on top. Local taxes are administered locally; the Louisiana Association of Tax Administrators publishes local rate information. Check the parish where materials are delivered and used.

## Which Louisiana contractor licenses do you need?

The Louisiana State Licensing Board for Contractors (LSLBC) uses dollar thresholds measured on labor and materials together. Plumbers are licensed separately by the State Plumbing Board, which says everyone doing plumbing or gas work must be licensed or registered as an apprentice.

**Louisiana contractor licenses by trade**

| Trade | Agency | License and trigger | Link |
| --- | --- | --- | --- |
| Home improvement | LSLBC | Home improvement registration, jobs over $7,500 up to $50,000 | [LSLBC FAQ](https://lslbc.louisiana.gov/faq/) |
| Residential construction | LSLBC | Residential license over $50,000 | [LSLBC](https://lslbc.louisiana.gov/types-of-licenses/) |
| Commercial | LSLBC | Commercial license at $50,000 or more | [LSLBC](https://lslbc.louisiana.gov/types-of-licenses/) |
| Electrical, mechanical (HVAC), plumbing on commercial jobs | LSLBC | Commercial license for projects over $10,000 | [LSLBC](https://lslbc.louisiana.gov/types-of-licenses/) |
| Plumbing (all work) | State Plumbing Board of Louisiana | Residential plumber limited, journeyman, master; gas fitter | [SPBLA](https://www.spbla.com/licenses/) |
| Mold remediation | LSLBC | License at $7,500 or more | [LSLBC](https://lslbc.louisiana.gov/types-of-licenses/) |
| Asbestos, lead, underground tanks | LSLBC | Commercial license at $1 or more | [LSLBC](https://lslbc.louisiana.gov/types-of-licenses/) |

_Sources: LSLBC and State Plumbing Board, verified 2026-10-19. Roofing and individual electrician licensing: check with LSLBC and your parish._

**Local licensing:** LSLBC warns that "an occupational license is NOT a contractor's license." Parishes and cities issue their own occupational licenses and permits, and some license electricians locally. Homeowners can build their own primary residence without a license, but not to rent or sell. More in our [contractor license guide](https://www.brix.so/learn/contractor-license).

## What are Louisiana's income and franchise taxes?

"For taxable periods beginning on or after January 1, 2025, the individual income tax rate is a flat 3%," says LDR. Corporations pay "a flat 5.5%," and the graduated brackets are gone. The corporation franchise tax "has been repealed for franchise tax periods beginning on or after January 1, 2026."

Individuals must file estimated payments when Louisiana tax after credits and withholding is "expected to exceed $1,000 for single filers and $2,000 for joint filers." Plan state and federal [quarterly estimated taxes](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors) together; the [quarterly estimated tax calculator](https://www.brix.so/tools/quarterly-estimated-tax-calculator) handles the federal piece.

## When do Louisiana contractors need workers' comp?

Right away. The Louisiana Workforce Commission's Office of Workers' Compensation says "employers in Louisiana are required to maintain workers' compensation insurance even if they only have one employee." A business owned by one person with no employees is exempt. Owners or officers holding at least 10% "may choose to exempt themselves," in writing to the insurer. See [workers' compensation for contractors](https://www.brix.so/learn/workers-compensation).

## Local taxes in Louisiana

- **Parish and municipal sales and use taxes**, administered locally on top of the 5% state rate.
- **Occupational licenses** from parishes and cities, separate from LSLBC licensing.
- **Permits and inspections** from local building departments.

## Neighboring state guides

Compare [Texas](https://www.brix.so/taxes/texas), which splits residential and nonresidential repair, [Mississippi](https://www.brix.so/taxes/mississippi), with its 3.5% contractor's tax, and [Arkansas](https://www.brix.so/taxes/arkansas).

BRIX tracks LSLBC licenses, occupational licenses, insurance and permits and flags renewals before they lapse. Quotes and invoices separate parts from labor, which helps when a service call involves taxable appliance repair. Tax decisions stay with your CPA.

- [Compliance and permit tracking](https://www.brix.so/#use-cases): Tracks licenses, safety documents and permits and flags renewals before they lapse.
- [Quotes and estimates](https://www.brix.so/features/quotes-estimates): Builds accurate quotes on site and follows up on every open estimate.
- [Invoicing and payments](https://www.brix.so/features/invoicing-payments): Turns finished jobs into invoices and politely chases unpaid ones until the money is in your account.

## Frequently asked questions

### Is labor taxable in Louisiana?

Labor to repair or maintain immovable property, like a house, isn't taxable in Louisiana. Labor to repair movable property, such as refrigerators, washers, dryers and furniture, is subject to sales tax. Ask LDR when equipment is attached to a building.

### What is Louisiana's state sales tax rate for contractors?

The state rate is 5% from January 1, 2025, up from 4.45%, and LDR notes it runs until December 31, 2029. Parish and city sales and use taxes are added on top and administered locally.

### Do contractors pay sales tax on government jobs in Louisiana?

Yes, unless the state or municipal agency provides Form R-1020 with the contract. Without it, LDR says the contractor owes sales or use tax on purchases, and working for a state agency doesn't exempt the contractor. Tools and consumables never qualify.

### When do you need a contractor license in Louisiana?

LSLBC requires a home improvement registration for jobs over $7,500 up to $50,000, a residential license over $50,000, and a commercial license at $50,000 or more. Commercial electrical, mechanical and plumbing work needs a license over $10,000. Plumbers also need a State Plumbing Board license.

### What is Louisiana's income tax rate?

Louisiana has a flat 3% individual income tax for taxable periods beginning on or after January 1, 2025. Corporations pay a flat 5.5%, and the corporation franchise tax is repealed for periods beginning on or after January 1, 2026.

### Do I need workers' comp for one employee in Louisiana?

Yes. Louisiana requires workers' comp even with one employee. A business owned by one person with no employees is exempt, and owners or officers with at least 10% ownership can exempt themselves in writing to the insurance company.

## Related

- [Do Contractors Charge Sales Tax on Labor or Materials?](https://www.brix.so/learn/sales-tax-on-labor-vs-materials)
- [What Is Use Tax for Contractors?](https://www.brix.so/learn/use-tax-for-contractors)
- [What Is a Contractor License?](https://www.brix.so/learn/contractor-license)
- [What Is Workers' Compensation Insurance?](https://www.brix.so/learn/workers-compensation)
- [Quarterly Estimated Taxes for Contractors: How They Work in 2026](https://www.brix.so/learn/quarterly-estimated-taxes-for-contractors)
- [Quarterly Estimated Tax Calculator for Self-Employed Contractors (2026)](https://www.brix.so/tools/quarterly-estimated-tax-calculator)
- [Texas Contractor Taxes and Licensing: Labor, Materials, Franchise Tax and Licenses](https://www.brix.so/taxes/texas)
- [Mississippi Contractor Taxes and Licensing: Contractor's Tax, Sales Tax and Licenses](https://www.brix.so/taxes/mississippi)
- [Arkansas Contractor Taxes and Licensing: Taxable Labor, Materials and Licenses](https://www.brix.so/taxes/arkansas)
- [Self-Employment Tax Calculator (2026)](https://www.brix.so/tools/self-employment-tax-calculator)

## Sources

- [LDR — Are repairs and maintenance to my home taxable?](https://revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax-reform/are-repairs-and-maintenance-to-my-home-taxable/) (checked 2026-10-19)
- [LDR — Do I have to collect sales tax on charges for labor?](https://revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax/do-i-have-to-collect-sales-tax-on-charges-for-labor/) (checked 2026-10-19)
- [LDR — What is the state sales tax rate? (5% from Jan. 1, 2025)](https://revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax-reform/what-is-the-state-sales-tax-rate/) (checked 2026-10-19)
- [LDR — What is the sales tax rate in Louisiana? (local taxes)](https://revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax/what-is-the-sales-tax-rate-in-louisiana/) (checked 2026-10-19)
- [LDR — HVAC contractor FAQ (Form R-1020, government jobs)](https://revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax/i-am-in-the-air-conditioning-and-heating-business-we-sell-service-and-install-heating-and-cooling-sy/) (checked 2026-10-19)
- [LDR — Individual income tax rates (flat 3%)](https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/what-are-the-individual-income-tax-rates-and-brackets/) (checked 2026-10-19)
- [LDR — Corporation income tax rate (flat 5.5%)](https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/what-is-the-corporation-income-tax-rate) (checked 2026-10-19)
- [LDR — Is the corporation franchise tax repealed?](https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/is-the-corporation-franchise-tax-repealed/) (checked 2026-10-19)
- [LDR — Declaration of estimated income taxes](https://revenue.louisiana.gov/individuals/general-resources/declaration-of-estimated-income-taxes/) (checked 2026-10-19)
- [LSLBC — Types of licenses](https://lslbc.louisiana.gov/types-of-licenses/) (checked 2026-10-19)
- [LSLBC — FAQ](https://lslbc.louisiana.gov/faq/) (checked 2026-10-19)
- [State Plumbing Board of Louisiana — Licenses](https://www.spbla.com/licenses/) (checked 2026-10-19)
- [Louisiana Workforce Commission — Workers' comp employer coverage FAQ](https://www.laworks.net/FAQs/FAQ_WorkComp_EmployerCoverage.asp) (checked 2026-10-19)

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Written by BRIX Editorial Team. Last updated 2026-10-19. General information, not tax, legal or financial advice.
Canonical: https://www.brix.so/taxes/louisiana