Study Shows Louisiana Combined Sales Tax Is Highest in America
For those in Louisiana who feel that we pay more in taxes than anyone, apparently you are right.
According to the findings of Tax Foundation, Louisiana's combined state and local sales tax is the highest in America.
Definitely not a statistic we should be proud of, Louisiana's average combined sales tax is 10.11 percent. The second highest sales tax is levied in Tennessee with 9.61 percent. Washington is third with 9.51 percent. Arkansas and Alabama are tied for fourth with 9.46.
Speaking with the Louisiana Radio Network, Policy Analyst Janelle Fritts says it’s a reputation that Louisiana has had to deal with for many years. "Louisiana has been in this not quite enviable spot the last couple of years. And even before it gained that top spot around 2022, it was always very, very close with Tennessee."
And while it would appear that Louisiana's combined sales tax is not terribly higher than that of Tennessee, there's a glaring issue with that comparison. Fritts explained, "Even though it does have a very high sales tax, just like Louisiana, Tennessee does not have an income tax. So the sales tax is how Tennessee makes up a lot of that loss revenue, whereas, Louisiana has all the major taxes.”
Consider the full extent of Louisiana's overall tax picture for the average resident. Out of the average dollar earned by citizens of the Bayou State, 14.5 percent is taken in the form of federal income taxes. Tack on an additional 3 percent in state income tax. There's another .53 percent in average property tax. Be sure to include fees for driver's license, vehicle registration fees and other state/local mandated fees or taxes and that dollar has been whittled down to about 81 cents.
Once you take that 81 cents to the store, we're paying another dime in sales tax, so overall our dollar is only worth about 71 cents. For that kind of money, you'd think that our schools would all be top shelf and our roads/bridges would be the envy of every other state. Obviously, that's just not the case.
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