- Overview
- Regional Overview
- Vital Statistics
- Demographics
- Labor Force
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Louisiana ranks number four in Bloomberg’s annual rating of the “wealth-friendly” states. The rankings are compiled by comparing taxes across the nation, including levies on salaries, real estate, and personal property.
(Bloomberg Wealth Manager Magazine, June 2003, http://wealth.bloomberg.com/wealth/0603/jun.ft.states.pdf)
Louisiana Corporate Income Tax
Every corporation and every association having income allocable to the state of Louisiana is required to file an income tax return with the state.
- 4 % on the first $25,000 of taxable income
- 5% on the next $25,000
- 6% on the next $50,000
- 7% on the next $100,000
- 8% on net income above $200,000
| State | Rate |
| Kentucky | 8.25% |
| California | 8.84% |
| Minnesota | 9.8% |
| Louisiana | 8.0% |
| West Virginia | 9.0% |
| Wisconsin | 7.9% |
* Top rate for states with multiple brackets.
Source: Commerce Clearing House, 2005 State Tax Handbook.
Unemployment Insurance
After the initial 24-month "period of eligibility," each employer is taxed according to a rate established by his own labor turnover experience. The minimum rate is 0.1% and the maximum rate is 6.2%, assessed on the first $7,000 in annual wages for each employee. Manufacturing rates range between 1.20 and 3.12 based on the industry average.
Workers’ Compensation
The average workers’ compensation rate is $3.67 per $100 of payroll, but actual rates vary according to the risk of specified jobs and individual industries.
Louisiana State Sales and Use Tax
The Louisiana state sales tax is 4%. It is levied on the retail sale of personal property, goods used or stored for use in Louisiana, leases and rentals of tangible personal property, and certain services. Basic consumer commodities, such as food for home consumption and prescription drugs, are exempt from state sales taxes. Local governing bodies may levy up to an additional 5.0% sales tax with voter approval.
Corporate Franchise Tax
State corporate franchise tax is levied annually at the rate of $1.50 per $1,000 on the first $300,000 of capital stock, surplus, undivided profits, and borrowed capital employed in Louisiana. The rate is $3 per $1,000 after the first $300,000. The minimum tax is 10% per year.
Louisiana Individual Income Tax
The tax rates for an individual filing as single, married but filing separately, or as head of household are: 2% of first $12,500 of taxable income, 4% on the next $25,000, and 6% on taxable income above $37,500. For married persons filing a joint return, the dollar amount in each bracket is doubled.
Property Tax
Louisiana business owners pay only local property taxes, which vary from location to location.
Tax Related Links
Information on state taxes, forms & filing can be found on the Louisiana Department of Revenue Web site: Louisiana Department of Revenue.
To obtain information and forms on tax rates and collections in each parish (and localities within each parish), visit the Louisiana Association of Tax Administrators Web site.
Louisiana’s Department of Insurance can answer your questions about insurance liability in the state. Visit the LDI Web site to find frequently asked questions, forms, and publications.
