Louisiana has taken a big step to remain competitive with Florida and Texas for boat buyers: effective July 1, 2025, the combined state and local sales and use tax on boats registered in Louisiana is now capped at $20,000 (Act 11 of 2025 ES3).
Boat Sales Tax Cap: Amended in conference and effective 7/1/25, the bill caps the combined state and local sales and use tax on boats registered in Louisiana at $20,000 (after reciprocity) if the tax is paid within 90 days of purchase, which implies that state and local sales tax owed on any boat costing more than about $200,000 will be reduced ($20,000/10% = $200,000).
Louisiana Sales Tax corrections from Act 11 of 2025 ES3
What This Means For You:
Cap Amount: $20,000 maximum sales tax on boat purchases in Louisiana if tax is paid within 90 days of purchase.
Applies To: Boats registered in Louisiana.
Effective Date: July 1, 2025.
Practical Impact: Boats costing over ~$200,000 will now see reduced effective tax rates, lowering your overall cost of ownership in Louisiana.
Example: An Excess 11 Catamaran purchased for $550,000 and registered in New Orleans, Louisiana, would have previously incurred $55,000 in sales tax at a combined 10% figure. With the new cap, the maximum sales tax you will owe is $20,000 – a potential savings of $30,000
So, Why Did Louisiana Make This Change?
Louisiana is following the path of Florida and Texas, which have long offered tax caps to encourage boat purchases and keep yacht buyers registering locally instead of seeking more favorable tax environments elsewhere.
This change makes Louisiana an attractive haven for boat buyers of all kinds: sportfishing boats, motor yachts, trawlers, cruising sailboats, catamarans, and more.
Work With Experienced Advisors
For over 50 years, we’ve helped Gulf Coast boaters navigate tax changes throughout Louisiana, as well as Texas, Mississippi, Alabama, and Florida. Contact the Murray Yacht Sales Team today to chart your most advantageous tax strategy while selecting the right vessel for your goals.