State Income Taxes in Louisiana
The state of Louisiana does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale with multiple brackets (3). The tax rates range from between 2.00% to 6.00% for 2020. The highest bracket starts at $50,000.
State Business Taxes in Louisiana
The state of Louisiana has a Corporate income tax that is also based on a marginal scale. It has multiple brackets (5) that range from 4.00% to 8.00%. Louisiana also imposes the Corporate income tax on S Corporations, but only if any of the shareholder are not Louisiana residents. Other flow-thru entities, such as LLCs and Partnerships are not subject to the corporate income tax.
Franchise Taxes in Louisiana
Additionally, the state of Louisiana imposes a Franchise tax on the capital of all corporate entities. It’s tax rates are
- 0.15% for the first $300K of capital assets, and
- 0.30% for the value of all capital greater than $300K.
Sales and Property Taxes in Louisiana
Sales Taxes – like most states, Louisiana has both a state and local sales tax. Its state sales tax is 4.45% and it’s local sales tax has an average rate of 5.07% (which puts the state average 9.52%). Louisiana has the 2nd highest sales tax in the country behind Tennessee.
Property Taxes in Louisiana – the average property tax rate for residential property in the state of Louisiana is 0.52%, which is well below the national average of 1.05% (in fact, Louisiana has almost the lowest property tax rate in the country, behind Hawaii and Alaska).
Payroll Taxes in Louisiana
Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:
- Wage Base – Louisiana has a wage base of $7,700
- UI Rates – range from 0.10% to 6.20%
- Schedules – Louisiana has multiple rate schedules regarding UI
Louisiana Business Entities – LLCs
Louisiana is inexpensive in regards to opening an LLC. Here are some important facts:
- Louisiana’s annual LLC fee is $35.
- When you register with the state, you pay a one time fee of $100
- Secretary of State of Louisiana website – click here