Louisiana

Sales Tax

  • Statewide: 4.45%
  • Counties can levy an additional sales tax of no more than 7.0%
  • Current average sales tax (with local taxes included): 9.162%
  • Common Exceptions at State Level:
    • Unprepared Foods: Exempt
    • Utilities: Exempt
  • Gasoline Tax: 38.41 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 44.41 cents/gallon (Includes all state, local, and federal taxes)
  • Cigarette Tax: $1.08/pack of 20
  • Unprepared foods and prescription medicine may be taxed at the local level.

 

Personal Income Tax

  • Personal Income Tax Rate Range: Three brackets from 2% to 6% (on income over $50,000)
  • Standard deduction: None
  • Personal Exemption Allowance: $4,500. Dependent Exemption: $1,000
  • 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. Retroactive to Jan. 1, 2021.

Income Tax Comments: *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: $7,500 of assessed value may be excluded.
    • 65 and over/Disabled: Assessed value may be frozen if income is less than $75,594.
    • Disabled Veterans: May receive an additional $7,500 reduction in assessed value if 100% service-connected disability.
  • Personal Property Tax: Yes. Rates and exemptions vary.

 

Inheritance & Estate Taxes: None

 

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

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