Louisiana state taxes

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State tax roundup

Louisiana

Louisiana collects income taxes using three rates: 2 percent, 4 percent and 6 percent. More on Louisiana taxes can be found in the tabbed pages below.

Income

Sales

Property

Estate

Other

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 $25,000 -- 6 percent on taxable income of $25,001 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.
	Pelican State taxpayers will find on 2007 returns an opportunity to claim a refundable tax credit as reimbursement for any assessments included as part of their homeowner's insurance premium and made to the Louisiana Citizens Property Insurance Program. Details in Louisiana Revenue Information Bulletin 07-015.

Sales tax
	The sales tax rate in Louisiana is 4 percent: a 3.97 percent Louisiana sales tax and a .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 level -- 64 parishes and 7 municipal districts -- and 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.
	The following classifications of property are subject to ad valorem taxation at the designated percentage of fair market value applicable: Land, 10 percent. Improvements for residential purposes, 10 percent. Electric cooperative properties, excluding land, 15 percent. Public service properties, excluding land, 25 percent. Other property, 15 percent.
	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
	Louisiana collects an inheritance tax. Each heir receives an exemption that is subtracted from their inheritance to determine the amount taxable.
	The amount taxable is then multiplied by the applicable tax rates. The exemption and tax rates to which each heir is entitled is based upon their relationship to the decedent.
	All estates that are subject to federal estate taxation under the U.S. Internal Revenue Code must file a Louisiana Estate Transfer Tax Return.

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.
	The Department of Revenue Web site maintains informaton on various federal and state tax relief programs related to natural disasters.
	Taxpayers can report suspected cases of tax fraud by filing online reports with the state.

Find out more on personal income tax rates at the Louisiana Department of Revenue's Web site.

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-- Updated: Feb. 4, 2008