Statewide Tax Costs
The state corporate franchise tax is levied annually at the rate of $1.50 per $1,000 on the first $300,000 of capital stock, surplus, undivided profits, and borrowed capital employed in Louisiana. The rate is $3.00 per $1,000 after the first $300,000. The minimum tax is $10.00 per year. Waiver of the corporate franchise tax is allowable under incentive programs.
Corporate Income Tax
This tax ranges from 4% to 8% of the net taxable income. The effective rate of taxation is somewhat less because federal income tables are deductible in computing net taxable income.
- 4% up to $25,000
- 5% over $25,000
- 6% over $50,000
- 7% over $100,000
- 8% over $200,000
Individual Income Tax
Louisiana's individual income tax is one of the lowest in the nation. The tax rates for individuals filing as single, married but filing separately, or as a head of the household are 2% of the first $10,000 of taxable income, 4% of the next $40,000 and 6% on taxable incomes over $50,000. For married persons filing a joint return, the dollar amount in each bracket is doubled. The state simplified income tax law includes a combined personal exemption and standard deduction of $4,500 ($9,000 for heads of households and married taxpayers filing joint returns). The deduction for each dependent is $1,000.
There is no state property tax in Louisiana, but local city and parish governments may levy property taxes on facilities, land, equipment, and inventory. Assessors are required by state law to uniformly assess business and industrial property at 15% of fair market value (land at 10%). Because of different millages, property taxes vary from parish to parish, but the average statewide rate on property is 1% of fair market value.
Manufacturing facilities that qualify for Louisiana's industrial tax exemption enjoy freedom from property taxes on facilities and equipment for a period of ten years. Private residences are assessed at 10% of fair market value. However, a provision in the Louisiana constitution states that no property tax will be charged on the first $75,000 of fair market value of an owner-occupied home. (This legal provision is referred to as the "Homestead Exemption.")
State Sales Tax
The Louisiana state tax is 5%. It is levied on the retail sale of personal property, on goods used or stored for use in Louisiana, and on leases and rentals of tangible personal property and certain services.
Parish Sales Tax
Currently, there is a 5.0% Iberville Parish sales tax in place in Plaquemine.
State Law Provisions
Under provisions of state law, all state and most local sales taxes may be waived on the construction materials and operating equipment of companies located in the enterprise zones.
State Unemployment Tax Authority
Louisiana's unemployment insurance tax system currently spends the least among the states in terms of amount of weekly benefits paid. Louisiana has built its Federal Unemployment Trust Fund to a balance of more than $1 billion.
The primary rate is determined by Standard Industrial Classification (SIC) code applicable to the business or industry until sufficient data are available to compute a rate based on the employer's experience of taxable wages, taxes paid, and benefits paid out.
The average rates of the industry range from a maximum of 3.22% to a minimum of 1.0% for the calendar year 1997. By the end of the fourth year, a new business will have sufficient unemployment tax history to have reached its "computation eligibility".
Upon reaching "computation eligibility", the business is switched from the SIC classification method to a computed rate method having these parameters:
- Maximum unemployment tax level = 6.01% multiplied by $7,700 wage base (or $462.77 per employee)
- Minimum unemployment tax level = 0.30% multiplied by $7,700 wage base (or $23.10 per employee)