The Tax Foundation

Tax Data

Louisiana

The Facts on Louisiana's Tax Climate

Here are some basic facts on Louisiana's tax system and how it compares to other states:

Tax Freedom Day Arrives on April 13 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 2008, Louisiana taxpayers had to work until April 13 (ranked 38th nationally) to pay their total tax bill, ten weeks earlier than national Tax Freedom Day (April 23). Neighboring states' Tax Freedom Days are: Texas, April 12 (ranked 40th); Arkansas, April 17 (ranked 30th); and Mississippi, April 7 (ranked 49th).

Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

Louisiana's State/Local Tax Burden Above Average in 2007
Between 1970 and 1999, Louisiana's state and local tax burden was well below the national average. Estimated today at 11.0% of income, Louisiana's state/local tax burden percentage ranks 17th highest nationally, equal to the national average of 11.0%. Louisiana taxpayers pay $3,808 per-capita for state and local taxes, and per capita state income is $34,501.
Louisiana's State-Local Tax Burden, 1970-Present

Louisiana's 2008 Business Tax Climate Ranks 32nd
Louisiana ranks 32nd 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 (8th), Arkansas (35th) and Mississippi (18th).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth 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 22nd highest nationally. Louisiana's 2005 individual income tax collections were $531 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 17th highest nationally. In 2006, state-level corporate tax collections (excluding local taxes) were $118.05 per capita and ranked 35th nationally.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

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 5.4 percent. State and local governments combined collected approximately $1,708 per capita in sales taxes in 2005, 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 43rd 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 and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

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 $2,223,465,000 in property taxes in fiscal year 2004, the latest year for which the Census Bureau has published state-by-state data. At the state level, Louisiana collected $39,739,000 in property taxes during FY 2004, making its combined state/local property taxes $2,263,204,000. Combined per capita collections in FY 2002 equaled $502 and ranked 5th lowest 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

Tax Data from The Tax Foundation