Louisiana State Tax
Louisiana Income Tax
Louisiana personal income tax rates follow a three-tiered bracket structure: 2% for taxable income less than $12,500; 4% for taxable income less than $50,000; and 6% for taxable income over $50,000. Companies, on the other hand, follow the five-tiered corporate income tax rates that range from 4% for the first $25,000 taxable income up to 8% for gross revenue greater than $200,000.
Residents who have lived at least six months of the taxable year are required to file their state income tax return to the Louisiana Department of Revenue. Companies, businesses, and non-residents are also subject to Louisiana income tax if they earn income from Louisiana sources.
Individuals over the age of 65 are granted with a tax immunity that exempts $6000 of retirement income from state tax. Louisiana likewise allows non-profit tax exemptions for labor unions, educational and scientific institutions, religious institutions, charities, and other non-profit organizations.
The State of Louisiana has the lowest property tax rates in the US. The state collects only 0.18% of a property’s fair market value. Property taxes make up about 0.45% of the Louisiana taxpayer’s annual income.
The Louisiana state sales tax is only 4%. However, the state has over 700 special sales tax jurisdictions while counties and cities can levy up to 6% additional local sales tax as well. Therefore, total Louisiana sales tax may vary and go up to 10% depending on the region you are in. Unlike in most states, purchases of groceries and prescription medicine are not exempted from sales tax.