Louisiana’s rich cultural heritage, world-renowned cuisine, and lively festivals make it one of the South’s premier travel destinations. From the jazz-filled streets of New Orleans to the historic charm of plantation country and the natural beauty of the bayous, the state attracts millions of visitors each year. Given this robust tourism market, short-term rentals have become an increasingly popular business venture. Although Louisiana does not impose a single statewide regulation on Airbnb and similar platforms, local governments play a key role in setting permit requirements, zoning rules, and taxes. This article outlines what property owners should know about starting a short-term rental in Louisiana, from essential state tax obligations to city-level policies.
Louisiana’s Definition of a Short-Term Rental
Unlike some states that provide a uniform definition, Louisiana does not define “short-term rental” in a single statute. Many parishes, cities, and towns treat any occupancy under 30 days as transient lodging, applying hotel or motel taxes. Some larger municipalities rely on specific short-term rental ordinances or interpret them within broader zoning guidelines. Because rules differ across the state, hosts should investigate local codes and ordinances in the exact parish or city where they plan to operate a vacation rental.
Starting a Short-Term Rental Business in Louisiana
Operating an Airbnb or other short-term rental in Louisiana typically begins with two layers of compliance: state tax obligations and local laws. At the state level, property owners must determine how Louisiana’s sales tax and any applicable parish taxes apply to nightly stays. If you establish a formal business entity—such as an LLC—you must register with the Louisiana Secretary of State.
At the local level, the city or parish may require an occupational license, a rental permit, or both. Zoning rules often regulate whether short-term rentals are permissible in residential neighborhoods or limit how many guests can stay at a time. Homeowners associations (HOAs) may also have specific restrictions that limit or ban short-term rentals under 30 days. Because local jurisdictions wield significant authority, checking with city hall or parish offices is a critical step before hosting.
Short-Term Rental Licensing Requirement in Louisiana
Louisiana does not issue a universal short-term rental license at the state level. Instead, municipalities and parishes adopt their own approaches to licensing or permitting:
- New Orleans: Requires a short-term rental permit for properties not classified as hotels, with additional regulations varying by zoning district (detailed below).
- Baton Rouge: Generally treats short-term rentals like other lodging businesses for tax purposes and may require an occupational license.
- Other Parishes or Towns: Some may only require that you follow local safety codes and collect the correct taxes. Others have introduced more detailed permit processes, zoning restrictions, or caps on the number of short-term rentals allowed in certain neighborhoods.
For any location, the consequences of noncompliance can include fines, forced closures, or revocation of a business license. Monitoring local council meetings or parish announcements helps ensure you remain up to date on evolving regulations.
Louisiana Short-Term Rental Taxes
Short-term rentals in Louisiana generally encounter multiple taxes, including:
- State Sales Tax: Currently 4.45% (though local sales taxes often increase the total to 9% or more, depending on the parish).
- Occupancy or Hotel/Motel Taxes: Parishes and cities can impose their own lodging taxes, which can range from a few percentage points to well over 10%.
- Tourism or Convention Taxes: Some jurisdictions add special taxes to fund local tourism boards, convention centers, or civic improvements.
If a booking platform does not handle these taxes for you, you must register with the Louisiana Department of Revenue and any relevant local tax authorities to file returns. Accurate tracking of rental income, cleaning fees, and nightly rates ensures you remit the correct amounts. Late or missing tax payments can lead to interest charges and possible penalties.
Vacation Rental Tax Deductions
Like short-term rental hosts in other states, Louisiana property owners can usually claim certain tax deductions if they rent out a property for more than 14 days a year. Commonly deductible expenses include mortgage interest, insurance, property taxes, utilities, cleaning fees, and maintenance. You may also depreciate the structure and its furnishings to reduce taxable income. Keeping detailed records, including receipts and the specific days rented, is vital. Reviewing the latest IRS guidelines or consulting a tax professional can help ensure that you follow all requirements.
Short-Term Rental Regulations by Major Locations in Louisiana
New Orleans
The Big Easy maintains some of the state’s most detailed short-term rental (STR) rules due to its heavy tourism. Hosts typically must apply for a short-term rental permit through the City of New Orleans, specifying whether the listing is owner-occupied or a whole-home rental. Additional restrictions apply in certain historic neighborhoods. Violations—such as advertising an unpermitted property—can result in substantial fines. New Orleans also imposes city lodging taxes on top of state and parish rates, meaning the effective tax rate can exceed 15%. Keeping your permit current and posting your permit number on listings is crucial for avoiding penalties.
Baton Rouge
Baton Rouge, Louisiana’s capital, has not enacted a citywide STR ban as of this writing, but it does regulate lodging businesses via occupational licensing. Hosts in East Baton Rouge Parish may owe local hotel/motel taxes. While full-home Airbnb operations are allowed, they must comply with parish zoning laws, which could limit short-term rentals in certain residential districts. Checking with city officials ensures you file any required paperwork and pay the correct local levies.
Shreveport
Shreveport, located in northwest Louisiana, applies standard parish and municipal lodging taxes to short-term rentals. Though there is no specialized short-term rental license in place at this time, operators should ensure their property meets local safety and zoning codes. HOAs in suburban neighborhoods might restrict rentals to avoid noise or parking issues, so verifying any private rules in your development is recommended. The city or parish may also require you to keep an occupational license if your rental income surpasses certain thresholds.
Lafayette
As a cultural hub of Cajun and Creole heritage, Lafayette attracts travelers interested in music, food, and festivals year-round. Short-term rentals are typically regulated through existing business licensing processes and local lodging taxes that fund tourism promotion. While full-home rentals are common, noise ordinances and parking requirements still apply. Staying abreast of city council conversations can help hosts anticipate any potential shifts in STR policies.
Lake Charles
Lake Charles is well-known for its casinos and proximity to outdoor activities, drawing visitors seeking a range of experiences. Operators of Airbnb or similar rentals must collect the parish lodging tax and the state sales tax, though no specialized STR permitting is currently in place. If your rental is part of a planned development or condo complex, however, you’ll need to review any HOA restrictions. As the city continues to diversify its economy, local government may revisit regulations on short-term rentals, so monitoring official announcements is wise.
Takeaway
Louisiana’s vibrant tourism economy and cultural wealth offer significant opportunities for short-term rental hosts—but also require careful attention to local ordinances and tax requirements. Because there is no comprehensive statewide STR license, success often hinges on verifying how your municipality or parish handles short-term rentals. In high-profile destinations like New Orleans, a specialized permit process and additional taxes apply, while smaller cities or unincorporated areas may only require collecting state and parish taxes.
Regardless of the location, maintaining accurate financial records and adhering to local zoning rules is critical. Staying connected with city or parish government updates will help you avoid penalties, potential shutdown orders, or unexpected changes to short-term rental policies. With the right approach, hosting travelers in Louisiana can be both enjoyable and profitable, enabling you to share the state’s distinct culture while supporting the local economy.
%201.webp)
%203.webp)
%201.webp)
.webp)
