Louisiana

 
 

The facts on Louisiana’s Tax Climate

Louisiana's Individual Income Tax System
Louisiana's personal income tax system consists of three brackets and a top rate of 6%. That rate ranks 21st highest among states levying an individual income tax. Louisiana's state and local income tax collections per person were $506 in 2012 which ranked 13th lowest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Louisiana's Corporate Income Tax System
Louisiana's corporate income tax system consists of five brackets and a top rate of 8%. That rate ranks 17th highest among states levying a corporate income tax. Louisiana's state and local corporate income tax collections per person were $43 in 2012 which ranked 7th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita

Louisiana Sales and Excise Taxes
Louisiana levies a 4% general sales or use tax on consumers, which is below the national median of 5.95%. The average local sales tax rate is an additional 4.89%. Louisiana's state and local governments collect $1438 per person in general sales taxes and $581 per person in excise taxes, for a combined figure of $2018, which ranks 3rd highest nationally. Louisiana's gasoline tax stands at 20¢ (12th lowest nationally), while its cigarette tax stands at $0.36 (3rd lowest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita

Louisiana Property Tax Collections Relatively Low
Louisiana's state and local governments collected approximately $776 per person in property taxes, which ranks 8th lowest nationally.
State and local property tax collections per capita by state

Tax Freedom Day Arrives on March 30th in Louisiana

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2014, Louisiana taxpayers worked until March 30th (earliest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Texas, April 13th (ranked 19th earliest nationally); Arkansas, April 12th (ranked 19th earliest nationally); and Mississippi, April 2nd (ranked 2nd earliest nationally).

Louisiana's State and Local Tax Burden Below National Average

Louisiana's 2011 tax burden of 7.58% ranks 5th lowest out of 50 states, and is below the national average of 9.8%. Louisiana's taxpayers pay $2872 per capita in state and local taxes.
Louisiana's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009

Louisiana's 2014 Business Tax Climate Index Ranks 33

Louisiana ranks 33rd in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes, individual income taxes, sales taxes, unemployment insurance taxes, and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Texas, 11th, Arkansas, 35th, and Mississippi, 17th.
50-State Comparison of Business Tax Climates (data only) (2013)
2014 State Business Tax Climate Index (full study)

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