Louisiana

Sales Tax

  • Statewide: 5.0%
  • Counties can levy an additional sales tax of no more than 8.5%
  • Current average sales tax (with local taxes included): 10.2%
  • Common Exceptions at State Level:
    • Prescription Medicine: Exempt
    • Unprepared Foods: Exempt
    • Utilities: Exempt
  • Gasoline Tax: 39.33 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 45.33 cents/gallon (Includes all state, local, and federal taxes)
  • Unprepared foods and prescription medicine may be taxed at the local level.

Personal Income Tax

  • Personal Income Tax Rate Range: 3%
  • Standard deduction: $12,500
  • Personal Exemption Allowance: None
  • Itemized Deductions Allowed?: Yes, subject to limitations
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Federal and state exempt
  • Military Pay
    • Active Duty Pay: Taxed to the extent included in federal Adjusted Gross Income; exempt up to $30,000 if serving outside state for 120 consecutive days or more
    • Military Retirement Pay: Exempt
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Exempt.  

*Taxpayers 65 and older may exclude $6,000 of retirement income. Federal income tax deductible.

Property Tax

  • Local municipalities average .55% of the property's assessed value.
  • Calculation of assessed value: 10% of fair market value
  • Relief programs for:
    • Owner-Occupied: $75,500 of assessed value may be excluded.
    • 65 and Over/Disabled: Assessed value may be frozen if income is less than $100,000.
    • Disabled Veterans: Totally exempt if 100% disability rating. May receive an additional exemption if disability rating of 50% or more.
    • Servicemembers/Disabled Veterans/Surviving Spouses: May be eligible for deferral. 
  • Personal Property Tax: Yes. Rates and exemptions vary.

Inheritance & Estate Taxes: None

Department of Revenue Website: https://revenue.louisiana.gov/

More Financial Guidance From MOAA 

Premium and Life members can consult our financial staff for education and consumer advice.

 

Looking to get more out of your membership? MOAA has nearly 400 chapters around the country, along with several virtual chapters. Get involved by finding one and joining today!