Think You Pay a Lot of Tax in Louisiana? Well It’s Far Worse Than That
A survey or poll or study of Louisiana's combined state and local sales tax would only confirm what shoppers already know. We're paying close to 10 cents in tax for every dollar we spend and that has to be near the top nationwide.
Well, guess what? It is.
Louisiana once again ranks number one for the highest average combined state and local sales tax rate at 9.55 percent. According to a recently released study by the Tax Foundation Louisiana edges out Tennessee for the top spot, even though Tennessee does not have a state income tax. "Louisiana does have all of those major taxes," says tax analyst Janelle Cammenga, "Which means the residents (of the state) are paying a higher tax burden because of that combined (state and local) tax."
But is any relief in sight for taxpayers across the state? As it stands now the state’s sales tax will drop nearly a half percent, but not until July of 2025. Cammenga says if that happens Louisiana might drop from its number one ranking for highest combined state and local sales tax rate in the USA. "That will be some kind of revenue loss, says Cammenga, "So the state will need to plan accordingly for how it wants to make that up or if thinks it can do without that extra revenue."
Meanwhile, on the just-barely-brighter-side, the state ranks second behind Alabama for the highest average local sales tax rates. State sales taxes provide a substantial amount of money for the state’s general fund, but most will concede it’s a tax that’s harder on low-income wage earners.