Louisiana Residents Getting Crushed by Sales Tax Compared to Other States

(Baton Rouge, Louisiana) - Louisiana business owners and local residents have been feeling the burn from inflation for a while now.

While we don't have estate or inheritance tax, most people would agree that our state and sales taxes make up for it pretty easily.

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According to RSM Gov. Jeff Landry signed a tax reform legislation repealing the corporate franchise tax, flattening personal and corporate income tax rates, increasing the sales tax rate, and imposing sales tax on digital goods and services.

Read More: Lafayette Parish Property Taxes Increasing

The tax reform legislation was signed in December of last year, so it's not completely shocking that a recent report from the Tax Foundation shows Louisiana having the highest average taxes in the United States.

Louisiana Ranked #1 for the Highest Average State and Local Sales Tax in the U.S.

Louisiana's combined state and average local sales tax rates are a whopping 10.12%, compared to 5.50% in Maine.

Louisiana sales tax revenue funds public schools, salaries for first responders, road maintenance, and many other vital state resources.

• State Income Tax: Graduated rates from 1.85% to 4.25%
• Corporate Income Tax: 5.5%
• State Sales Tax: 4.45%
• Average Combined State & Local Sales Tax: 9.56% (Highest in the U.S.)
• Property Tax (Effective Rate on Owner-Occupied Homes): 0.51%

The Tax Foundation also reports that Louisiana's tax system ranks 40th overall on the 2025 State Tax Competitiveness Index and notes that it is "one of the most complicated sales tax regimes and a long list of unusual and uncompetitive taxes and tax provisions".  You can read their detailed breakdown here.

Learn more about Louisiana's recent tax reform here.