Photo credit: ©iStock.com/DenisTangneyJr
Louisiana might be known for its delicious cuisine and vibrant culture, but it also offers some of the lowest property tax rates in the United States. Only Alabama and Hawaii residents pay less on average than the residents of the Pelican State. In fact, Louisiana boasts a generous property tax rate of just 0.55%, compared to the nationwide average of 0.99%.
How Louisiana Property Taxes Work
Property tax bills in Louisiana follow an annual cycle, with bills typically sent out in November and due by December 31st. If the taxes are not paid by that date, they are considered delinquent. The amount you owe in property taxes is determined by two factors: the assessed value of your property and your local tax rate.
To establish the assessed value, local assessors determine the market value of your property. This is often done using a sales approach, where they analyze the sales prices of comparable properties in your area. For residential properties in Louisiana, the assessed value is typically equal to 10% of the market value.
One major advantage for homeowners in Louisiana is the homestead exemption, which reduces the taxable value of owner-occupied properties by $7,500. This exemption can save homeowners hundreds of dollars each year. However, it's important to note that the homestead exemption does not apply to city taxes, so you must calculate city taxes using the full assessed value without the exemption.
Louisiana Property Tax Rates
In Louisiana, various local government entities have the power to levy property taxes, each with its own tax rates. These rates generate the revenue needed to operate these tax authorities. As a homeowner, your total tax rate is the sum of all the individual rates of the local tax districts that apply to your property.
The property tax rates in Louisiana are referred to as millage rates. A mill represents $1 of tax for every $1,000 of net assessed taxable value. For example, with a net assessed taxable value of $10,000 and a millage rate of 50, your taxes owed would amount to $500.
Property Tax Rates in Select Parishes
East Baton Rouge Parish
Photo credit: ©iStock.com/DenisTangneyJr
East Baton Rouge Parish, home to the state capital of Baton Rouge, has a property tax rate of 0.72%. While this rate is higher than the state average, it remains significantly lower than the national average.
Jefferson Parish
Located in southeast Louisiana, adjacent to the city of New Orleans, Jefferson Parish has a property tax rate of 0.59%, with a median home value of $193,600 and a median annual tax payment of $1,149.
Orleans Parish
Thinking about a move to New Orleans? Orleans Parish, which encompasses the city, has the second-highest property tax rate in Louisiana. However, the average effective property tax rate is still below the national average at 0.79%, with a median annual property tax payment of $1,972.
Caddo Parish
The typical homeowner in Caddo Parish pays an annual property tax of $909, less than half the national average. The median home value in the parish is $150,200.
St. Tammany Parish
St. Tammany Parish has the highest property taxes in Louisiana, with an average effective rate of 0.89%. The local schools in this parish received an A grade from the state in 2017, making it an attractive option for families.
Lafayette Parish
Photo credit: ©iStock.com/zodebala
Located in southern Louisiana, Lafayette Parish has an average effective property tax rate of 0.68%. With a median home value of $189,700, the annual property tax payment comes to around $1,299.
Calcasieu Parish
Calcasieu Parish, one of the most populous parishes in Louisiana, has an average effective property tax rate of 0.68%, making it one of the lowest in the country. The median home value is $160,800, with a median annual tax payment of $1,096.
Ouachita Parish
Ouachita Parish, situated in northeast Louisiana, has an average effective property tax rate of 0.62%. The median annual property tax payment for a typical homeowner is around $926.
Rapides Parish
Rapides Parish, located in central Louisiana along the Red River, has an average effective property tax rate of 0.55%, which aligns with the state average and is significantly lower than the national average.
Livingston Parish
Livingston Parish has a near-average effective property tax rate of 0.59% in Louisiana. With median home values at $173,200, residents in this parish can expect to pay around $1,028 per year in property taxes.
Understanding property taxes is crucial when considering purchasing a home or relocating to a new area. Consulting a financial advisor specializing in property taxes can help you make informed financial decisions. By leveraging the generous property tax rates in Louisiana, you can achieve your homeownership goals while keeping your financial well-being intact.
