Louisiana State Tax Guide

State tax rates and rules for income, sales, property, fuel, cigarette, and other taxes that impact Louisiana residents.

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.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

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.

Rocky Mengle
Senior Tax Editor, Kiplinger.com

Rocky was a Senior Tax Editor for Kiplinger from October 2018 to January 2023. He has more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, he worked for Wolters Kluwer Tax & Accounting and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky has a law degree from the University of Connecticut and a B.A. in History from Salisbury University.