Overview of Louisiana Taxes
Louisiana has a flat income tax rate of 3.00%. The average sales tax rate (including local and state) in the Bayou State is one of the highest in the country, at about 10.17%. However, Louisiana has one of the lowest effective property tax rates is the U.S.
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Your Income Taxes Breakdown
| Tax Type | Marginal Tax Rate | Effective Tax Rate | 2025 Taxes* |
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* These are the taxes owed for the 2025 - 2026 filing season.
Your 2025 Federal Income Tax Comparison
- Your marginal federal income tax rate
- Your effective federal income tax rate
- Your federal income taxes
Total Estimated 2025 Tax BurdenIncome Tax $ Sales Tax $ Fuel Tax $ Property Tax$ Total Estimated Tax Burden $ Percent of income to taxes = % | $ |
- About This Answer
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
- First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
- Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer as well as dependents such as one’s spouse or children.
- Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year.
- Your location will determine whether you owe local and / or state taxes.
- Last Updated: January 1, 2026
When Do We Update? - We regularly check for any updates to the latest tax rates and regulations.
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Taxes in Louisiana
Louisiana State Tax Quick Facts
- Income tax: 3.00%
- Sales tax: 5% - 13.5%
- Property tax: 0.53% effective rate
- Gas tax: 20.93 cents per gallon of regular gasoline
Taxes in the Bayou State range from very low to very high, depending on the type of tax and your location. The state income tax of 3.00% is slightly lower than average among the 50 states. Meanwhile, state and local sales taxes average about 9.57%, which is the highest combined rate in the U.S. In some areas, sales taxes are over 12%, while other areas pay rates less than half that amount. Meanwhile, the typical homeowner in Louisiana has a property tax rate of 0.53%.
A financial advisor can help you understand how these taxes fit into your overall financial goals. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Louisiana Income Taxes
Unlike the federal income tax, the Louisiana state income tax is a flat rate of 3.00%.
These rate applies to Louisiana taxable income. This figure is calculated based on federal adjusted gross income (AGI), with some additions for sources of income that are taxable in Louisiana, as well as some subtractions for Louisiana deductions, exemptions and nontaxable income sources.
The main income source that must be added back to federal AGI to calculate Louisiana income tax is interest and dividend income. There are several income sources that can be subtracted, including Louisiana state employees’ or teachers’ retirement benefits, federal retirement benefits, Social Security income and up to $6,000 in retirement income from other sources for taxpayers ages 65 or over.
In previous years, Louisiana had a personal exemption and allowed the deduction of federal itemized deductions that exceeded the federal standard deduction on their federal tax return, but both of those allowances were discontinued with the transition to a flat income tax rate.
The state does still allow taxpayers to deduct school expenses for dependents who are currently in school.
Louisiana Sales Tax
Louisiana’s state sales tax rate is 5%. Alone, that is one of the lowest rates in the nation. Unfortunately for Louisiana consumers and visitors, that base rate is augmented by significant parish (what Louisiana calls its counties) and city sales tax rates. The table below shows the maximum combined state and local sales tax rates for every parish in Louisiana.
Those rates apply to the prices of all “tangible personal property” purchased in the state. That includes clothing, furniture, sporting goods and electronics. Select services are also taxable, such as admissions to athletic or amusement events, hotel rooms, parking services, laundry, certain repair services and telecommunications services.
On the other hand, a number of commonly purchased products are exempt from sales tax. Food for home consumption, prescription drugs, orthotic or prosthetic devices, wheelchairs and manufacturing machinery are all exempt – but only from the statewide rate. Local taxes may still be required, depending on the local rules.
Louisiana Property Tax
Property taxes in Louisiana are fairly low. In fact, the typical homeowner there pays just $1,187 annually in property taxes, equal to an effective rate (annual taxes paid as a percentage of home value) of 0.53%.
If you’re looking to refinance your home or make a move to the Pelican State, this mortgage guide is a good place to start to get the basics about getting a mortgage in Louisiana.
Louisiana Estate Tax
There is no estate tax in Louisiana.
Louisiana Capital Gains Tax
Both long- and short-term capital gains are taxed as regular income in Louisiana, meaning the flat 3.00% income tax rate. One exception to that is gains resulting from the sale of a non-publicly traded business or interest in such a business, including corporations, partnerships and limited liability companies. For the deduction to apply, the business must have been owned for a minimum of five years directly preceding the sale or exchange.
Louisiana Cigarette Tax
Louisiana’s state cigarette tax of $1.08 per pack of 20 cigarettes.
Louisiana Alcohol Tax
In addition to sales taxes, alcohol in Louisiana faces additional excise taxes. These add up to $0.40 per gallon of beer and $3.03 per gallon of distilled spirits (including additional fees and sales tax).
