Louisiana

Tax Rate Range: Low - 2%; High - 6%
Income Brackets: * Lowest - $12,500; Highest - $25,000
Number of Brackets: 3
Personal Exemptions:** Single - $4,500; Married - $9,000; Dependents - $1,000; 65 and older - $1,000
Standard Deduction: Included in personal exemptions
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: Full
Retirement Income Taxes: Social Security, military, civil service, state/local government pensions are exempt. For qualified private pensions a person age 65 and older can receive a tax exemption of up to $6,000. If married and filing jointly, and each person has a private pension income, then up to $12,000 can be exempt. Out-of-state government pensions qualify for the private pension/retirement exemption.
Retired Military Pay: Not taxed.
Military Disability Retired Pay: Disability Portion - Length of Service Pay; Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless combat incurred. Retired Pay - Based solely on disability: Member on September 24, 1975 - No tax; Not Member on September 24, 1975 - Taxed, unless all pay based on disability and disability resulted from armed conflict, extra-hazardous service, simulated war, or an instrumentality of war.

State Tax Software

VA Disability Dependency and Indemnity Compensation: Not subject to federal or state taxes
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
* For joint returns, the taxes are twice the tax imposed on half the income.
** Combined personal exemption and standard deduction.

Sales Taxes

State Sales Tax: 4%; 3.8% for electricity, water utility services and steam; Interstate telecommunication services are taxable at 2%. Political subdivisions also levy their own sales tax that could bring the total to 10.75%. Food, drugs, wheelchairs and prosthetic devices are taxed locally.
Gasoline Tax: 20 cents/gallon
Diesel Fuel Tax: 20 cents/gallon
Cigarette Tax: 36 cents/pack of 20

Taxes are assessed and collected at the local level -- 64 parishes and 7 municipal districts. The Louisiana State Tax Commission has a regulatory role regarding property assessments. Property assessments are based on 10% of the fair market value of the property. Homeowners receive a homestead exemption in the amount of $7,500. Exemption is applied against the assessed value of the home which is equal to 10% of the fair market value. Therefore, only homes with a market value over $75,000 would be subject to the parish (county) property tax. However, this exemption does not generally apply to municipal taxes.
A Special Assessment applies to the homestead of persons who are 65 years of age and older if the adjusted gross household income is below a certain level. For the tax year 2006, that level was $58,531. The level may change from year to year, so it is advisable to check with the assessor's office to determine qualifications.. This special assessment will freeze the assessed value of the homestead for as long as the applicant owns and resides in the home and income does not exceed the maximum allowed. It will be lost if improvements in excess of 25% of the home's value are added. Call 225-925-7830 for details.

Heirs pay tax on the taxable value of their inheritance, legacy, and donation or gift in contemplation of death, at the following rates determined by their relationship to the deceased. Direct descendants by blood or affinity or ascendants - 2% the first $20,000 taxable value and 3% of the taxable value in excess of $20,000. Collateral relations of the decedent (including brothers and sisters by affinity and their decendents) - 5% of the first $20,000 taxable value plus 7% of the taxable value in excess of $20,000. If the amount of inheritance taxes paid to the state is less than the amount of the maximum credit for state death taxes set forth in Internal Revenue Code Section 2011(b), Louisiana levies an additional death tax, known as the Louisiana estate transfer tax, equal to the amount by which the maximum credit provided in Internal Revenue Code Section 2011(b) exceeds the amount of inheritance taxes levied. The estate transfer tax does not impose any additional tax burden on the decedent's estate, but merely shifts payment from the federal government to the state.
For further information, visit the Louisiana Department of Revenue site or call 255-219-0102. Additional information can be found at the Louisiana Tax Commission site.