Louisiana’s Low Property Tax: How Much Can You Really Save?

https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585

Louisiana has somewhat infamously always kept property taxes low, at least since the 1974 version of the state's constitution. But just how much money are the people of Louisiana saving on their taxes?

Low Property Taxes Mixed With Low Property Value

Louisiana is tied with Tennessee for the 11th lowest real estate tax, only 0.06% higher than the third lowest rate in Colorado. Though Louisiana's low tax rate is appealing, the state still has one of the lowest median home values at $208,700.

A combination of a very low tax rate and low property value means Louisiana on average pays $1,146 a year for a home of the median value, though of course this could change depending on what local taxes may apply in areas of the state.

With the fourth lowest average annual taxes costing a Louisiana homeowner a little over a thousand dollars, Louisiana homeowners save a lot compared to a state like Oklahoma that pays $1,520 a year for property tax.

At the end of the year Louisiana homeowners are saving anywhere between a couple hundred up to $4,000 on their property taxes.

Sales Taxes Makeup For What Property Loses

With such a low property tax you might start to wonder where Louisiana's government is getting money to function if most other states have a higher rate, are the other states just pocketing the money that Louisiana misses out on? Well no, Louisiana still needs to rake in tax income so the state government can function.

Louisiana makes up for what they don't get form property tax with the state sales tax. The sales tax in Louisiana is 9.56% as of 2024, the highest sales tax rate out of all 50 states.