How taxes work in Louisiana
Sales tax. Louisiana charges a 5% statewide sales tax, and counties, cities and special districts add their own on top — which is why the average combined rate of about 9.56% is the number that matters at the till. Groceries are exempt from the state tax; parish/local taxes on food vary.
Property tax. At an average effective rate of about 0.55%, a $350,000 home in Louisiana carries roughly $1,925 a year in property tax before exemptions. Louisiana is a low-property-tax state, which quietly lowers the true cost of owning there. Local assessors set actual bills, so verify with the county for any specific property.
Income tax. Moved to a flat 3% income tax in 2025, paired with the state sales tax rising to 5%. If you are self-employed in Louisiana, you still owe federal self-employment tax plus quarterly state estimates where applicable.
Sales tax · average combined
Property tax · average effective
Chart: DailyFinance.tools · Rates are reviewed averages from our state tax dataset — your exact local rate may differ.
How Louisiana compares with similar states
The states closest to Louisiana on average combined sales tax. Property tax is the average effective rate; income tax shows the structure, not a single rate.
| State | Combined sales tax | Property tax | Income tax |
|---|---|---|---|
| Louisiana (this page) | 9.56% | 0.55% | Flat |
| Tennessee | 9.55% | 0.67% | None |
| Arkansas | 9.44% | 0.62% | Progressive |
| Washington | 9.38% | 0.87% | None |
| Alabama | 9.29% | 0.42% | Progressive |
| All-state average (51 entries) | 6.61% | 1.04% | — |
What this means for your money in Louisiana
Property tax is light in Louisiana: an average effective rate of 0.55% ranks 45 of 51, well below the all-state average of 1.04%. A $400,000 home carries about $2,200 a year. Low property tax lowers the fixed cost of owning, which partly offsets whatever the state's income and sales taxes take.
Read together: Louisiana combines an average combined sales tax of 9.56% (rank 1 of 51), an average effective property tax of 0.55% (rank 45 of 51) and a flat state income tax. A household comparing states should compare all three against its own pattern — a high earner who rents weighs the income tax most; a homeowner on a fixed income weighs the property tax most.
Major cities in Louisiana
New Orleans, Baton Rouge, Shreveport, Lafayette, Lake Charles. Combined sales-tax rates differ between these cities — sometimes by more than a full percentage point inside the same state — because county and city layers stack on the state base. The Louisiana sales tax guide breaks down the calculation and links the calculator where you can enter your exact local rate.
Calculators for Louisiana residents
- Louisiana Sales Tax Guide & Examples — what you actually pay, with worked amounts.
- Sales Tax & VAT Calculator — add or extract tax at any rate, including your exact Louisiana local rate.
- Mortgage Calculator — include Louisiana property tax in the monthly payment.
- Property Tax Calculator — estimate a specific property's bill.
- Self-Employment Tax Calculator — federal SE tax for Louisiana freelancers.