How does Louisiana’s tax code compare? Louisiana has a graduated state individual income tax, with rates ranging from 1.85 percent to 4.25 percent. Louisiana has a graduated corporate income tax, with rates ranging from 3.5 percent to 7.5 percent. Louisiana also has a 4.45 percent state sales tax rate and an average combined state and local sales tax rate of 9.56 percent. Louisiana has a 0.51 percent effective property tax rate on owner-occupied housing value.
Louisiana does not have an estate tax or inheritance tax. Louisiana has a 20.93 cents per gallon gas tax rate and a $1.08 cigarette excise tax rate. The State of Louisiana collects $4,856 in state and local tax collections per capita. Louisiana has $6,637 in state and local debt per capita and has a 74 percent funded ratio of public pension plans. Louisiana’s tax system ranks 40th overall on the 2025 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Louisiana is no exception. The first step towards understanding Louisiana’s tax code is knowing the basics. How does Louisiana collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures 2024: How Does Your State Compare?
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The State Tax Competitiveness Index enables policymakers, taxpayers, and business leaders to gauge how their states’ tax systems compare. While there are many ways to show how much state governments collect in taxes, the Index evaluates how well states structure their tax systems and provides a road map for improvement.
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Facts & Figures serves as a one-stop state tax data resource that compares all 50 states on over 40 measures of tax rates, collections, burdens, and more.
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Tax burdens rose across the country as pandemic-era economic changes caused taxable income, activities, and property values to rise faster than net national product. Tax burdens in 2020, 2021, and 2022 are all higher than in any other year since 1978.
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Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
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Graduated corporate rates are inequitable—that is, the size of a corporation bears no necessary relation to the income levels of the owners.
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Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for 32 percent of state tax collections and 13 percent of local tax collections (24 percent of combined collections).
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Passage of Louisiana Amendments 1 and 2, which are aimed at the sales tax and individual and corporate income taxes, respectively, would substantially simplify the Pelican State’s tax code and provide tax relief in both the short and long term.
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Louisiana legislators passed a tax reform plan that has received overwhelming support in both the House and Senate, but voters will get the ultimate say on whether that plan succeeds. In light of this, it may be valuable to walk through what is included in these reforms and what effect the changes will have on taxpayers.
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