State Taxes at a Glance – Louisiana
|Type of Tax||2023|
|Individual Rates||1.85% to 4.25%|
|Corporate / Business Tax Rates||3.50% to 7.50%|
|Gross Receipts Tax||None|
|Sales Tax||9.55% (average)|
|Property Taxes||0.54% as a percentage of primary home|
|Estate or Inheritance Tax||None|
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 1.85% to 4.25%. 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 (3) that range from 3.50% to 7.50%. 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. Its tax rates were changed last year. Starting in 2022, the first $300K of capital assets are exempt from the franchise tax. Anything over $300K is subject to 0.275%.
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 its local sales tax has an average rate of 5.10% (which puts the state average 9.55%). Starting in 2022, Louisiana has the highest average sales tax rate in country.
Property Taxes in Louisiana – the average property tax rate for residential property in the state of Louisiana is 0.54%, which is well below the national average of 1.08% (in fact, Louisiana has almost the lowest property tax rate in the country, behind Hawaii and Alaska).
Louisiana DMV Fees
The state of Louisiana imposes a license plate fee paid based on the vehicles value. That means it is deductible on your federal tax return. You may look up your Louisiana DMV fees here.
Louisiana presumption is that it’s your permanent place of abode (domicile) if you’ve lived there for over 6 months within a taxable year.
State Tax on Social Security Benefits
Even though Louisiana has an income tax, social security benefits are not subject to state tax in “The Pelican State.”
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 0.09% 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