Louisiana Retirement
If you live in Louisiana and you are over 60 you can write up to $6,000 in retirement benefits off of your state income taxes. If a married couple is filing jointly, each spouse can write up to $6,000 in retirement income off. This write-off applies to Social Security, Railroad Retirement benefits and most government pensions. Private pensions and income from IRAs, annuities, and other private retirement vehicles is not covered by this exemption.
Most Louisiana residents will be able to take the full exemption because Social Security is included. Almost all other retirement income is taxable by the state of Louisiana.
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Louisiana Income Tax
All Louisiana residents that file a federal tax return are required to file a state tax return. Part time residents of the state that file a federal tax return are also required to file a Louisiana state tax return. Your income tax rate in Louisiana is based upon the adjusted gross income listed on your federal tax return.
The income tax rate in Louisiana is as follows: 2% for the first $12,500 in taxable income for singles and the first $25,000 for married couples filing jointly, 4% for singles with $12,500-$50,000 in taxable income and $25,000-$100,000 for married couples filing jointly, 6% for singles with over $50,000 in taxable income and married couples filing jointly with over $100,000 in taxable income. These rates could change because Louisiana's state legislature regularly changes the income tax laws.
It is possible that the Louisiana State Income Tax could be abolished in the near future. A bill to do just that is currently before the state senate. It is not clear if the bill could pass or how the state would make up for lost revenue if there was no income tax.
Louisiana Sales Tax
Louisiana has a state sales tax of 3.97% and a state tourism tax of .03%, making the effective state sales tax rate 4%. Phone service, internet service, satellite TV service, cable TV service, and prepaid phone calling cards are subject to a 3% state sales tax in Louisiana.
Medical equipment, medical supplies, insulin, wheelchairs and other devices for the handicapped and prescription drugs are not subject to sales tax. Food is subject to the sales tax in Louisiana.
Louisiana Property Tax
Property taxes in Louisiana are assessed, administered, and collected by parish governments. The property tax system is overseen by the /Lousiana Tax Commission which handles taxpayer appeals.
A parish is equivalent to a county in other states. You will have to contact your parish government in order to determine what the property tax on your property is. No homestead or senior citizens property credits or exemptions are available in Louisiana.
Louisiana Inheritance Tax
There is an inheritance tax in Louisiana the rate is 2% for the first $20,000 in inherited income and 3% in inherited income for relatives. Collateral relatives such as brothers and sisters are charged a rate of 5% for the first $20,000 in inherited income and 7% for inherited income over $20,000. Non-relatives are charged 5% for the first $5,000 in inherited income and 10% for more than $5,000 of inherited income.
| Capital: | Baton Rouge |
| Cost of Living Rank: | #21 |
| Sales Tax: | 4.0% |
| Income Tax: | 2.0% - 6.0% |
| State Website: | http://www.louisiana.gov |