State-by-State Guide to Taxes on Middle-Class Families
Tool | November 2020

Louisiana State Tax Guide for Middle-Class Families

State tax rates and rules for income, sales, gas, property, cigarette, and other taxes that impact middle-class families.

Louisiana

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The Bottom Line
Flag of Louisiana

Tax-Friendly

The Pelican State is homeowner-friendly, with property taxes among the lowest in the country. But, overall sales tax rates are the highest in country, according to the Tax Foundation. And localities are allowed to tax the sale of groceries, even though the state does not. Income tax rates aren't too bad, and they might be even lower depending on whether voters approve a rate cap in October. Louisiana is one of a handful of states that allow residents to deduct their federal income taxes (although that could change soon).

Income Tax Range

Low: 2% (on $12,500 or less of taxable income for individuals, $25,000 for joint filers)

High: 6% (on more than $50,000 of taxable income; $100,000 for joint filers)

On November 13, 2021, Louisiana voters will decide whether to cap the maximum rate at 4.75% starting in 2022. If that ballot initiative is approved, Louisiana's lowest personal income tax rate will be 1.85% and it's highest rate will be 4.75% beginning in 2022. In addition, each personal income tax rate will be reduced beginning February 1, 2024, and each February 1 thereafter through 2034, if the prior fiscal year's actual individual income tax collections exceed the actual tax collections for the fiscal year ending June 30, 2019, adjusted annually by the growth factor provided for in the state constitution.

Sales Tax

4.45% state levy. Localities can add as much as 7%, and the average combined rate is 9.55%, according to the Tax Foundation.

Groceries: Exempt from state tax, but local taxes may apply
Clothing: Taxable
Motor Vehicles: Taxable
Prescription Drugs: Exempt from state tax, but local taxes may apply

Real Property Taxes

In Louisiana, the median property tax rate is $534 per $100,000 of assessed home value.

Motor Fuel Taxes

Gasoline: 20.01¢ per gallon.
Diesel: 20.01¢ per gallon.

Sin Taxes

Cigarettes: $1.08 per pack
Smokeless tobacco: 20% of manufacturer's price
Smoking tobacco: 33% of manufacturer's price
Snuff: 20% of manufacturer's price
Cigars: 8% to 20% of manufacturer's price
Vapor products: $0.05 per ml

Beer: $0.40 per gallon
Wine: $0.76 per gallon (Sparkling: $2.08 per gallon)
Liquor: $3.03 per gallon

Annual Car Taxes and Fees

No annual vehicle tax or fee is imposed.

Estate and Inheritance Taxes

No estate or inheritance tax.


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