Louisiana Tax Calculator 2026

Louisiana Income Tax

Louisiana imposes a graduated state income tax with three brackets for 2026: 1.85% on the first $12,500 of net income for single filers ($25,000 for married filing jointly), 3.5% on income up to $50,000 ($100,000 joint), and 4.25% on all income above those thresholds. Louisiana enacted a sweeping tax reform package in its 2024 special legislative session that fundamentally restructured the state’s income tax system. The reform lowered rates, eliminated the previously unique deduction for federal income taxes paid (Louisiana was one of the last states to allow this), and removed numerous other deductions and credits.

Prior to the 2024 reform, Louisiana’s tax code was widely regarded as one of the most complex and inefficient in the nation. The state allowed taxpayers to deduct federal income taxes paid from their Louisiana taxable income, which created an unusual interaction between state and federal liabilities. This deduction disproportionately benefited higher-income earners and made Louisiana’s effective rates considerably lower than the statutory rates suggested. By eliminating this deduction while simultaneously lowering rates, the reform aimed to create a more transparent and equitable system.

Louisiana’s income tax brackets for single filers in 2026 are:

Taxable Income	Rate
$0 – $12,500	1.85%
$12,500 – $50,000	3.50%
Over $50,000	4.25%

Louisiana Sales Tax

Louisiana has one of the highest combined sales tax rates in the United States, averaging approximately 9.55% when state and local taxes are combined. The state sales tax rate is 4.45%, but Louisiana’s 64 parishes (the equivalent of counties in other states) and hundreds of municipalities levy their own local sales taxes, which can add 5% to 7% on top of the state rate. Some areas, particularly in the New Orleans metro region, can see combined rates exceeding 10%. This patchwork of local taxing jurisdictions—over 300 in total—has historically made Louisiana one of the most challenging states for sales tax compliance.

Louisiana established the Louisiana Sales and Use Tax Commission for Remote Sellers to serve as a centralized collection authority for remote sellers, simplifying out-of-state vendor compliance. Food purchased for home preparation is subject to Louisiana sales tax, though at lower rates in some parishes. Prescription drugs are exempt from state and local sales tax. Louisiana does not participate in the Streamlined Sales Tax agreement, reflecting the complexity of its multi-layered local tax system.

Louisiana Property Tax

Louisiana has one of the lowest effective property tax rates in the entire nation at approximately 0.55%. This is due in large part to the state’s generous homestead exemption, which shields the first $75,000 of a homeowner’s assessed value from parish and municipal property taxes. Since residential property is assessed at only 10% of fair market value, a home worth $150,000 would have an assessed value of $15,000, and after the $7,500 homestead exemption (10% of $75,000), only $7,500 would be subject to local taxes. This structure means that many lower-value homes pay very little in property tax.

Property tax rates are set by individual parishes, municipalities, school boards, and special districts. Louisiana’s constitution limits the ability of local governments to raise property tax rates without voter approval. The state conducts reassessments every four years, which can result in significant value adjustments. Despite the low rates, property tax revenue remains an important source of funding for local services, particularly school districts. Commercial and industrial properties are assessed at 15% of fair market value and do not receive the homestead exemption.

Louisiana Parish Tax System

Louisiana’s parish system is unique in the United States and has significant implications for taxpayers. Unlike most states that use counties, Louisiana’s 64 parishes each function as independent taxing authorities with their own sales tax rates, property tax millages, and administrative structures. This creates enormous variation in tax burdens depending on exactly where within Louisiana a person lives or does business.

For example, the combined sales tax rate in Orleans Parish (New Orleans) is approximately 9.45%, while some rural parishes have combined rates closer to 8.5%. Conversely, property tax millage rates vary widely by parish and by the specific combination of school districts, levee districts, and special purpose districts that overlay a given property. Bossier Parish near Shreveport tends to have higher millage rates due to the number of special taxing districts, while some rural parishes in central Louisiana have lower total millages.

The parish system also impacts business taxation. Louisiana’s local sales tax collection was historically fragmented, with each parish operating its own collection office with its own forms, deadlines, and audit procedures. Recent reforms have moved toward greater centralization and uniformity, particularly for remote sellers, but local compliance remains more complex in Louisiana than in most other states. Businesses operating across multiple parishes must navigate different rate structures and exemption rules at the local level.

Louisiana vs. Neighboring States

• Louisiana vs. Texas: Texas has no state income tax, which is a major advantage for higher earners. However, Texas has considerably higher property taxes (averaging about 1.60%) compared to Louisiana’s 0.55%. Texas sales taxes average about 8.2%, lower than Louisiana’s 9.55%. For someone with a high income and expensive home, the overall burden may be similar.
• Louisiana vs. Mississippi: Mississippi has graduated rates up to 4.7%, slightly higher than Louisiana’s 4.25% top rate. Mississippi has a 7% state sales tax but lower combined rates (no local sales tax in most areas). Mississippi’s property tax rate of 0.65% is slightly higher than Louisiana’s 0.55%.
• Louisiana vs. Arkansas: Arkansas has graduated income tax rates topping out at 4.4%, comparable to Louisiana. Arkansas has a lower average combined sales tax rate of about 9.44% and higher property taxes at about 0.62%. Both states have complex local tax structures.
• Louisiana vs. Florida: Florida has no state income tax and lower sales taxes (averaging about 7.01%). Florida’s property taxes are higher (0.86%) but still moderate nationally. For most taxpayers, Florida offers a lower overall tax burden than Louisiana.