How does Louisiana’s tax code compare? Louisiana has a flat individual income tax of 3.00 percent. Louisiana has a 5.5 percent corporate income tax rate. Louisiana also has a 5.00 percent state sales tax rate and an average combined state and local sales tax rate of 10.11 percent. 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 has a 20.93 cents per gallon gas tax rate and a $1.08 cigarette excise tax rate (per pack of 20 cigarettes). The State of Louisiana collects $5,497 in state and local tax collections per capita. Louisiana has $3,583 in state and local debt per capita and a 78 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. The first step toward 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 2025: 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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