Louisiana Expands Grocery Tax Exemptions, Reduces Baton Rouge Household Costs

Louisiana House Bill 456 passed the state legislature on July 2 and now awaits the governor's signature. The measure adds baby formula, diapers, and certain over-the-counter medications to the list of items exempt from the state sales tax when purchased in stores or online for home delivery.

State lawmakers approved the bill during the regular session that ended June 30. The change responds to repeated requests from parish governments and local food banks that documented rising prices for basic goods in monthly reports filed with the Louisiana Department of Revenue.

Household Spending Changes

Baton Rouge shoppers who buy a case of infant formula each month will no longer pay the 4.45 percent state sales tax on that item under the new rules. Families with young children in the 70805 and 70806 zip codes stand to see the largest immediate difference at registers inside Walmart Supercenter locations on Airline Highway and Florida Boulevard.

Local advocates note that the average East Baton Rouge household spends roughly $180 per month on the newly exempted categories, according to purchase data compiled by the parish planning commission in its 2025 consumer survey. The exemption removes the state portion of the tax from those totals while leaving parish and city sales taxes in place.

The legislation states that the Department of Revenue must issue updated tax collection guidance to retailers by October 1. Stores must reprogram point-of-sale systems before the January 1, 2027 start date. Policy analysts say the department will conduct compliance checks at major chains in Baton Rouge during the first quarter of the new year.

Implementation will also require updates to the state's online sales tax portal used by third-party delivery services. Residents who order groceries through apps will see the adjusted totals reflected once the system changes take effect.