Louisiana State Taxes
In general, Louisiana taxes residents and nonresidents alike on all income sources. However, the state's tax code differs from federal law in several ways
The state of Louisiana has a wide range of taxes. Individuals pay taxes on income, property, and sales. These taxes are a vital source of revenue for the state government. They also fund essential services for the public. Fortunately, residents of the state enjoy lower taxes than most other states.
Those who e-file their returns or file an extension can make estimated tax payments online through the Official Payments site. The service is free if you use your bank account and a small fee is charged if you use another method of payment.
The deadline for filing a Louisiana return is May 15. A federal extension can be used to extend the due date by six months to November 15. Late filing or payment penalties are assessed.
Louisiana Income Tax
Louisiana has a graduated income tax system, meaning the tax rate increases as your income rises. Rates range from 1.85% to 4.25%. This makes it one of the lowest in the country. Residents of the state can make their tax payments online or by mail. If they need more time, they can request an extension.
Residents and nonresidents who earn income in Louisiana must file a state individual income tax return, Form IT-540. If they expect their total Louisiana income tax liability after credits and taxes withheld to exceed $1,000 or $2,000, they must make estimated income tax payments throughout the year.
Louisiana Sales Tax
Louisiana’s state sales tax rate is 4.45%, but local jurisdictions can add additional sales tax on top of that, bringing the total rate up to 7% in some areas. Each parish in the state has its own local sales tax rate, which can be up to 7%. Certain items, such as food for home consumption, prescription drugs and orthotic or prosthetic devices, are exempt from the statewide sales tax. Those who use electricity, natural gas or steam to power their homes or businesses must pay a 2% energy tax. The state also imposes a cigarette excise tax of $1.08 per pack of 20 cigarettes. A 2% tax is also levied on the transportation of gas or oil by pipeline, riverboat, barge or truck.
Some common products are exempt from Louisiana Sales Tax, including food for home consumption, prescription drugs and orthotic or prosthetic devices. However, the state does charge a 2% tax on electricity, natural gas, steam and water. And local governments can levy their own sales taxes on top of the statewide rate.
Louisiana Property Tax
Property taxes are levied by local jurisdictions, so the rate you pay will vary depending on where you live. Louisiana has one of the lower property tax rates in the country. Local (parish and municipality) property taxes are based on assessed value, which is calculated using a market approach. Local assessors use comparable sales data to determine market values and then apply a percentage of that to your property’s value. The result is your assessed property tax rate. Local property taxes in Louisiana are among the lowest in the nation.
