Credit card processing and merchant services in New Orleans, LA
Hospitality is a big part of New Orleans business, and the tax table shows it: 10% on most sales, up to 17% on hotel rooms, and no debit card surcharges since August 1, 2026.
Most sales in New Orleans carry 10% sales tax, 5% for Orleans Parish and 5% for the state, according to the City's rate table. The same table lists a separate 4.5% Orleans Parish rate for food and drugs, 13% on parking, and two hotel rates. Properties with 10 or more rooms charge 15%, and those with nine or fewer charge 17%, because the state's share is lower for the larger hotels.
Hospitality is a big share of the local economy. The 2022 Economic Census counted $3.97 billion in accommodation and food services sales in New Orleans, against $5.45 billion in retail, in a city of 362,154 people by the Census Bureau's July 2025 estimate. If your bar or restaurant adds a card fee, Louisiana's new law matters: since August 1, 2026, a retail business can't put a surcharge on a debit card payment. Credit cards can still carry one, within Visa's 3% and Mastercard's 4% caps.
Your tax filing is split, too. The state's 5% goes to the Louisiana Department of Revenue, while the City collects the Orleans Parish tax through its own returns for sales, parking and hotel taxes. Put both due dates on your calendar.
Clearo prices on interchange-plus, which shows what each card costs you line by line. For bars and restaurants, our restaurant guide is a good start, and a free statement review will show where your current fees stand.
Rules that matter in New Orleans
Debit card surcharges
Since August 1, 2026, Louisiana's Act 751 bars a retail business from imposing a surcharge on a cardholder who pays by debit card. Credit card surcharges remain subject to Visa and Mastercard rules. If you add a fee at the bar or the register, make sure your terminal applies it to credit cards only.
Sources: Louisiana Legislature, Act 751 of 2026 (Senate Bill 254), enrolled text; Visa, U.S. Merchant Surcharge Q and A (PDF)
Hotel, parking and short-term rental taxes
The City's rate table lists 15% for hotels and motels with 10 or more rooms at one location and 17% for those with nine or fewer. Both include the 5% parish sales tax, a 4% Louisiana Stadium and Exposition District tax and a 3% Morial Convention Center tax; the state sales tax share is 3% for the larger properties and 5% for the smaller ones.
Parking carries 13% in total, and the City lists a 5% Orleans Parish gross rentals tax among its short-term rental taxes.
Sources: City of New Orleans, Orleans Parish sales tax rate; City of New Orleans, Pay sales, use and parking tax
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Common questions
What is the sales tax rate in New Orleans?
10% on sales of tangible personal property: 5% for Orleans Parish and 5% for the state. The City's rate table also lists a 4.5% Orleans Parish rate for food and drugs, 13% on parking, and 15% or 17% on hotel rooms, depending on how many rooms the property has.
Why do some New Orleans hotels charge 17% and others 15%?
The state sales tax share depends on size. The City's table shows 3% state tax for properties with 10 or more rooms at a single location and 5% for those with nine or fewer, on top of the 5% parish tax, a 4% stadium and exposition district tax and a 3% convention center tax.
Can my New Orleans bar add a fee for debit cards?
No. Visa and Mastercard rules don't allow surcharges on debit cards, and since August 1, 2026, Louisiana law also bars retail businesses from surcharging debit card payments. You can still surcharge credit cards within Visa's 3% and Mastercard's 4% caps, with disclosure, as long as your terminal can tell the two apart.
Where do I file Orleans Parish sales tax?
With the City of New Orleans, which collects the 5% Orleans Parish sales tax and has its own returns for sales, parking and hotel taxes. The state's 5% is filed separately with the Louisiana Department of Revenue.
What tax applies to short-term rentals in New Orleans?
The City's rate page lists a 5% Orleans Parish gross rentals tax under its short-term rental sales and occupancy taxes. Read the City's page for the full list before you set up your booking platform or payment links, and confirm the total with your accountant.
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Disclaimer: general information, not professional advice
This page is general educational information, not legal, tax, accounting or financial advice. Rules and rates vary by place and change, so confirm them with the official source and a qualified professional before you act. Full terms are in our Terms of Service.
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