Article
Louisiana clarifies taxation of digital products and related services
Sept. 11, 2025 · Authored by Bob Johnson, Kristen Scherer
Louisiana’s H.B. Eight expanded sales tax to digital goods effective Jan. 1, 2025. Additionally, the Louisiana Department of Revenue (LDR) issued new guidance on Aug. 14, 2025, clarifying the taxability of these products and services.
Expansion of taxable services
Louisiana now imposes state and local sales and use tax on digital products transferred electronically, as well as on two newly enumerated services: prewritten computer software access services (SaaS) and information services. The LDR has issued detailed guidance defining taxable products and services, providing sourcing rules, examples, and exemptions.
Digital products
Taxable digital products include electronically delivered or streamed audiovisual works, including movies, TV, and events; audio works, including music, audiobooks, and ringtones; digital books; digital codes; apps and games, including in-app items; and digital periodicals or discussion forums. Both subscriptions and one-time purchases are included, regardless of whether the purchaser obtains permanent rights. Examples include monthly streaming subscriptions, downloaded e-textbooks or audiobooks, and in-app purchases.
SaaS
Software transferred electronically meets the definition of a digital good as of Jan. 1, 2025. SaaS covers charges to access vendor-hosted software such as productivity suites, CRM platforms, meeting and design tools, storage, or e-signature services.
Maintenance, updates, and support services may also be taxable if they are delivered in electronic form. Merely answering questions or troubleshooting are not taxable when separately stated. Support or maintenance that modifies or repairs the software functionality is taxable.
Examples of taxable services flagged by LDR include Office 365, Google Workspace, Zoom, Salesforce, DocuSign, Dropbox, market data subscriptions, newsletters with searchable archives, and curated lead lists.
Information services
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The information provided here is of a general nature and is not intended to address the specific circumstances of any individual or entity. In specific circumstances, the services of a professional should be sought. Tax information, if any, contained in this communication was not intended or written to be used by any person for the purpose of avoiding penalties, nor should such information be construed as an opinion upon which any person may rely. The intended recipients of this communication and any attachments are not subject to any limitation on the disclosure of the tax treatment or tax structure of any transaction or matter that is the subject of this communication and any attachments.