Regular readers of Tax Foundation reports know that we publish estimates of the distributional impact of federal tax changes: that is, we estimate how a tax reform might affect the after-tax incomes of taxpayers at...
The facts on Louisiana’s Tax Climate
6%individual income taxTop rate
8%corporate income taxTop rate
$849property taxcollections per capita
Louisiana's Individual Income Tax System
Louisiana's individual income tax system consists of three brackets with a top rate of 6%. The top rate ranks 19th highest among states levying an individual income tax. Louisiana's state and local tax collections per person were $592 in 2013, which ranked 39th highest nationally.
50-State Table of Individual Income Tax Rates
Louisiana's Corporate Income Tax System
Louisiana's corporate income tax system consists of five brackets with a top rate of 8%. The top rate ranks 13th highest among states levying a corporate income tax. Louisiana's state and local corporate income tax collections per person were $55 in 2013 which ranked 44th highest nationally.
50-State Table of Corporate Income Tax Rates
Louisiana Sales and Excise Taxes
Louisiana levies a 5% general sales or use tax on consumers, which is below the national median of 5.95%. (The rate increased to 5%, from 4%, as of April 1, 2016.) The average local sales tax rate is an additional 5%. Louisiana's state and local governments collect $1,465 per person in general sales taxes and $535 per person in excise taxes, for a combined figure of $2,000, which ranks 5th highest nationally. Louisiana's gasoline tax stands at 20.01 cents per gallon, 41st highest nationally, while its cigarette tax stands at $0.86, 35th highest nationally.
50-State Table of State and Local Sales Tax Rates
Louisiana Property Tax Collections Relatively Low
Louisiana's state and local governments collected approximately $849 per person in property taxes in 2013, which ranks 42nd nationally.
Tax Freedom Day Arrives on April 7th in Louisiana
Tax Freedom Day is the day when Americans have finally earned enough money to pay off their total tax bill for the year. In 2016, Louisiana taxpayers have to work until April 7th (3rd earliest nationally) to pay their total tax bill.
Louisiana's State and Local Tax Burden Ranks 45th
Louisiana's 2016 Business Tax Climate Index Ranks 37th
Louisiana ranks 37th on the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes (38th), individual income taxes (27th), sales taxes (50th), unemployment insurance taxes (5th), and taxes on property (28th), including residential and commercial property.
State Business Tax Climate Index (full study)
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Related State Articles
- Lunch Links: House to Take Up Tax Break for Olympic Medal Winners; Trump Child Care Plan Unveiled; Louisiana Puts Off Tax Plans to Address Budget Deficit
- Louisiana Voters to Consider Amendment 3, a Corporate Tax Simplification Measure
- Lunch Links: Republican Plan Upcoming for Sales Tax on Internet Buys; Walmart Avoids Excessive Tax Proposed by Puerto Rico; Explaining Why States Should Index Tax Brackets for Inflation
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