Louisiana State Tax: Overview
Louisiana's state taxes are relatively low when it comes to owning property. The state has one of the lowest property tax rates in the nation. Sales taxes are high, but essential items such as groceries, diapers, and some feminine hygiene products are exempt at the state level. Louisiana only has three income tax brackets, with the highest being 4.25%. That's much lower than the highest tax bracket in many other states.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Louisiana Income Taxes
Louisiana tax on retirement benefits: There is no state income tax on Social Security retirement benefits or federal retirement benefits (includes military and non-military). Several state retirement benefits are also not taxed in Louisiana.
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Taxpayers age 65 and older can also exclude up to $6,000 of annual retirement income from their taxable income. If filing jointly, each spouse can exclude up to $6,000. However, only one exclusion is permitted if one spouse is under age 65.
Income Tax Range for 2023: Single filers
| Up to $12,500 | 1.85% |
| $12,501 to $50,000 | 3.5% |
| More than $50,001 | 4.25% |
Income Tax Range for 2023: Joint filers
| Up to $25,000 | 1.85% |
| $25,001 to $100,000 | 3.5% |
| More than $100,000 | 4.25% |
Louisiana Sales Tax
Income from federal government, designated Louisiana state and local government, and military retirement plans is fully exempt. Railroad Retirement benefits are also exempt.
- Groceries are tax-exempt at the state level
- Prescription Drugs are tax-exempt at the state level
- Diapers and feminine hygiene products are tax-exempt at the state level
How Much Are Property Taxes in Louisiana?
In Louisiana, the average effective property tax rate is 0.56%, which is currently one of the lowest property tax rates in the U.S.
Louisiana Property Tax Breaks for Retirees
Special Assessment: Eligible homeowners 65 and older can have the tax assessed value of their property frozen. To qualify, residents must meet income guidelines that are set each year. The freeze is permanent unless one of the following applies.
- You no longer live in the home
- The value of the property increases by more than 25% due to construction or renovation
Note: Homeowners under age 65 may also qualify for the property tax freeze, including those with a disability and surviving spouses of some Louisiana National Guard members (applies in only some circumstances).
Louisiana Motor Vehicle Taxes
Motor vehicle purchases are subject to state and local sales taxes.
Louisiana taxes gasoline at $0.20 per gallon and adds an additional $0.01 in local taxes and fees.
Louisiana Alcohol and Tobacco Taxes
| Cigarettes | $1.08 per pack |
| Cigars | 8% to 20% of manufacturer's price |
| Other tobacco products | 20% to 30% of manufacturer's price |
| Beer | $0.32 per gallon |
| Wine | $0.11 per gallon |
| Wine (sparkling) | $1.59 per gallon |
| Liquor | $2.50 per gallon |
(Note: Additional and local excise taxes may also apply to alcoholic beverages.)
Louisiana Estate and Inheritance Taxes
Louisiana is one of the many states with no estate or inheritance taxes.
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