Research Areas
Louisiana
The Facts on Louisiana's Tax Climate
Last updated July 1, 2009
Here are some basic facts on Louisiana's tax system and how it compares to other states:
Tax Freedom Day Arrives on March 28 in Louisiana
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2009, Louisiana taxpayers had to work until March 28 (ranked 49th nationally) to pay their total tax bill, over two weeks before national Tax Freedom Day (April 13). Neighboring states' Tax Freedom Days are: Texas, April 6 (ranked 32nd); Arkansas, April 4 (ranked 37th); and Mississippi, March 28 (ranked 48th).
Full study of Tax Freedom Day, nationwide and in each state
Louisiana's State/Local Tax Burden Below National Average
Estimated at 8.4% of income, Louisiana's state/local tax burden percentage ranks 42nd highest nationally, well below the national average of 9.7%. Louisiana taxpayers pay $3,286 per capita in state and local taxes.
Louisiana's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008
Louisiana's 2010 Business Tax Climate Ranks 35th
Louisiana ranks 35th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Texas (11th), Arkansas (40th) and Mississippi (21st).
50-State Comparison of Business Tax Climates (data only)
2009 State Business Tax Climate Index, Sixth Edition (full study)
Louisiana's Individual Income Tax System
Louisiana's personal income tax system consists of three separate brackets with a top rate of 6%, kicking in at an income level of $50,000. Among states levying an individual income tax, Louisiana's top rate ranks 21st highest nationally. Louisiana's 2006 individual income tax collections were $572 per person, which ranked 38th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita
Louisiana's Corporate Income Tax System
Louisiana's corporate tax structure consists of five brackets and a top rate of 8% kicking in at a corporate income level of $200,000. Among states levying corporate income taxes, Louisiana's rate ranks 16th highest nationally. In 2007, state-level corporate tax collections (excluding local taxes) were $176 per capita and ranked 20th nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita
High Sales Tax Collections in Louisiana; Cigarette Taxes Low
Louisiana levies a 4% general sales or use tax on consumers, which is below the national median of 6 percent. State and local governments combined collected approximately $1,510 per capita in sales taxes in 2006, which ranks 4th highest nationally. Louisiana's gasoline tax stands at 20 cents per gallon and ranks 36th highest nationally. Louisiana's cigarette tax stands at 36 cents per pack of twenty, ranking 46th nationally. The sales tax was adopted in 1938, the gasoline tax in 1921 and the cigarette tax in 1932.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales Tax Collections Per Capita and Per Household
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita
Louisiana Property Taxes: Among the Lowest
Louisiana is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more. Louisiana's localities collected $ 554.79 in property taxes in fiscal year 2006, the latest year for which the Census Bureau has published state-by-state data. At the state level, Louisiana collected $ 10.43 per capita in property taxes during FY 2006, making its combined state/local property taxes $565.23 per capita, ranking 46th highest nationally.
State property tax collections per capita by state
Federal Tax Burdens and Expenditures: Louisiana is a Beneficiary State
Louisiana taxpayers receive more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of federal tax collected in 2005, Louisiana citizens received approximately $1.78 in the way of federal spending. This ranks the state 4th highest nationally and represents a rise from 1995 when Louisiana received $1.35 per dollar of taxes in federal spending (ranked 7th nationally). Neighboring states and the amount of federal spending received per dollar of federal tax collected were: Texas ($0.94), Arkansas ($1.41), and Mississippi ($2.02).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state
