Bottom Line
Middle-Class Families: Tax-Friendly (Go to the Kiplinger Tax Map for Middle-Class Families)
Retirees: Tax-Friendly (Go to the Kiplinger Tax Map for Retirees)
The Pelican State is homeowner-friendly, with a statewide median property tax rate that's among the lowest in the country. Income tax rates aren't too bad, either. And they were just lowered for most people starting with the 2022 tax year.
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But shoppers in Louisiana face the highest average combined state and local sales tax rate in country, according to the Tax Foundation. And localities are allowed to tax the sale of groceries, even though the state does not. Overall, though, the state's tax burden on residents is lower than average.
Louisiana Income Taxes
Louisiana Income Tax Range
Low: 1.85% (on $12,500 or less of taxable income for individuals, $25,000 for joint filers)
High: 4.25% (on more than $50,000 of taxable income; $100,000 for joint filers)
The personal income tax rates will be reduced beginning April 1, 2024, and each April 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 in the state constitution.
Louisiana Taxation of Social Security Benefits
Social Security benefits are not taxed by the state.
Louisiana Tax Breaks for Other Retirement Income
Income from federal government, designated Louisiana state and local government, and military retirement plans is fully exempt. Railroad Retirement benefits are also exempt.
In addition, taxpayers 65 and older can exclude up to $6,000 of other federally-taxable retirement income, including payments from private pensions, annuities and IRAs (up to $12,000 for joint filers).
Louisiana 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
Louisiana Real Property Taxes
In Louisiana, the median property tax rate is $552 per $100,000 of assessed home value.
Louisiana Property Tax Breaks for Retirees
Homeowners who are 65 or older with adjusted gross income of less than $100,000 can benefit from freezing the assessed value of their homestead. This benefit is lost if improvements in excess of 25% of the home's value are added.
Louisiana Motor Fuel Taxes
Gasoline: 20.01¢ per gallon.
Diesel: 20.01¢ per gallon.
Louisiana 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
Louisiana Estate and Inheritance Taxes
No estate or inheritance tax.
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