Louisiana has a flat 3.00 percent individual income tax rate. Louisiana has a flat 5.50 percent corporate income tax rate, a 5.00 percent state sales tax rate, and an average combined state and local sales tax rate of 10.11 percent—the highest in the nation. Louisiana has a 0.55 percent effective property tax rate on owner-occupied housing value. Louisiana does not have an estate tax or inheritance tax. Louisiana’s gas tax is 20.93 cents per gallon, and its cigarette excise tax is $1.08 per pack of 20 cigarettes.
Louisiana raises tax revenue primarily through general sales taxes (40.2 percent of total state and local tax revenue), other taxes (19.3 percent), and property taxes (18.5 percent). Louisiana collects $5,863 in state and local tax collections per capita, carries $6,304 in state and local debt per capita, and has an 82 percent funded ratio of public pension plans. Louisiana’s tax system ranks 31st overall on the 2026 State Tax Competitiveness Index.
Each state’s tax code is a multifaceted system with many moving parts, and Louisiana is no exception. Use the tabs below to compare Louisiana taxes with other states and to see how Louisiana raises tax revenue. You can also browse our tax maps, which are compiled from our annual publication, Facts & Figures 2026: 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.
2 min read
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?
9 min read
Retail sales taxes are an essential part of most states’ revenue toolkits, responsible for nearly a quarter of combined state and local tax collections.
18 min read
Forty-four states levy a corporate income tax, with top rates ranging from a 2 percent flat rate in North Carolina to an 11.5 percent top marginal rate in New Jersey. Four states—Georgia, Nebraska, North Carolina, and Pennsylvania—reduced their corporate income tax rates effective January 1, 2026.
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Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
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If the policy goal of taxing cigarettes is to encourage cessation, vapor taxation must be considered a part of that policy design.
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Which states have the highest property taxes in 2022? See how your state compares in property taxes across the United States
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The sales tax is too important a part of states’ revenue toolkits to be permitted further erosion, making sales tax modernization a vital project of the 2020s.
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Ranking unemployment insurance tax codes on the 2022 State Business Tax Climate Index. Learn more about state unemployment insurance tax code and systems.
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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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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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The FDA’s expected announcement of a national ban on menthol-flavored cigarettes and cigars with a characterizing flavor would carry significant revenue implications for both the federal government and state governments, with likely limited benefits in smoking cessation.
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