Personal income tax
Louisiana collects income taxes from its residents utilizing three tax brackets.
For single taxpayers, they are:
- 2 percent on the first $12,500 of taxable income.
- 4 percent on taxable income between $12,501 and $50,000.
- 6 percent on taxable income of $50,001 and above.
For married persons filing joint returns, the rates remain the same but the income brackets are doubled.
Residents need to file Form IT-540, which is due by May 15.
The sales tax rate in Louisiana is 4 percent: a 3.97 percent Louisiana sales tax and a 0.03 percent Louisiana Tourism Promotion District sales tax.
Political subdivisions also levy their own sales tax in addition to the state fees.
The state also has a use tax of 8 percent applied toward goods purchased out of state, which includes 4 percent to be distributed by the Department of Revenue to local governments. The use tax is in lieu of the actual local rate in effect in your area, and is payable regardless of whether the actual combined state and local rate in your area is equal to, higher than or lower than 8 percent.
Personal and real property taxes
Property taxes are assessed and collected at the local (parish or municipality) level, not by the Louisiana Department of Revenue. The Louisiana Tax Commission has a regulatory role regarding property assessments.
Taxpayers having property in the state of Louisiana are required to file a property tax return with the assessor of any parish and any municipality levying a tax on or before April 1 or within 45 days of receipt of the return form, whichever is later, furnishing values as of Jan. 1.
Property subject to ad valorem taxation is listed on the assessment rolls at its assessed valuation, which, less some exceptions, is a percentage of its fair market value. The percentage of fair market value is uniform throughout the state upon the same class of property.
Louisiana offers a homestead exemption on the first $7,500 of the value of a person's primary residence. The exemption, however, does not usually apply to municipal taxes.
Inheritance and estate taxes
The Louisiana inheritance tax was repealed effective Jan. 1, 2010. However, individuals who inherited property before the tax's repeal and did not file an inheritance tax return may be subject to taxes and penalties that have since accrued.
All estates that are subject to federal estate taxation under the U.S. Internal Revenue Code must file a Louisiana Estate Transfer Tax Return. Since the phaseout of the federal estate tax credit, however, no state estate tax is imposed.
Other Louisiana tax facts
The Louisiana Department of Revenue offers eligible taxpayers the option of free Internet filing.
Once residents have filed, they can go online to check their refund status.
Athletes, even those who are not full-time residents of Louisiana, who received income from Louisiana sources must file a state tax return, reporting their state income.
Taxpayers can report suspected cases of tax fraud by filing online reports with the state.