Louisiana Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Louisiana in 2026, with political context.
No
No Income Tax
3.0% (flat, 2025 change)
Income Tax Rate
#24
Tax Burden Rank (1=highest)
#6
Property Tax Rank (1=highest)
Tax Policy Overview
Louisiana passed a major tax restructuring in November 2024, reducing income taxes to a 3% flat rate while expanding the sales tax base. Louisiana historically had among the highest local sales taxes nationally. Property taxes are very low.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 3.0% (flat, 2025 change) |
| No Income Tax | No |
| Sales Tax | 5.0% (+local up to 12.95%) |
| No Sales Tax | No |
| Corporate Tax | 5.5% |
| Property Tax Rank | #6 nationally (1=highest) |
| Overall Tax Burden Rank | #24 nationally (1=highest) |
Political Context
Louisiana’s 2024 tax reform represented a significant restructuring. Governor Jeff Landry (R) pushed through the flat income tax reduction. Critics argued the revenue replacement via sales tax expansion was regressive. The reform was passed as part of a special session.