How Much Is Property Tax in Louisiana?

Property taxes in Louisiana are a local tax supporting essential services provided by parishes and taxing districts. These funds support public education, law enforcement, fire protection, and infrastructure. The amount varies significantly by parish and taxing district. Understanding these taxes begins with property valuation.

How Louisiana Property Values Are Determined

Property valuation in Louisiana is handled by the parish assessor’s office, except for public service properties assessed by the Louisiana Tax Commission. This process determines the property’s fair market value, the price a willing buyer and seller would agree upon. Assessors use appraisal methods like comparable sales, replacement cost, and for commercial properties, income potential.

After fair market value is established, an assessment percentage is applied to determine the “assessed value,” the portion of the property’s value on which taxes are calculated. Residential properties are assessed at 10% of fair market value, while commercial properties are assessed at 15%. For example, a home with a fair market value of $200,000 would have an assessed value of $20,000 (10% of $200,000). A statewide reassessment occurs at least every four years, though individual property values may adjust between these periods due to market activity or property changes.

Understanding Millage Rates

Property tax rates are expressed in “mills,” where one mill equals $1 of tax per $1,000 of assessed value. Local taxing authorities, such as parish councils, school boards, and special districts, set millage rates to fund their services.

The total millage rate is the sum of all individual rates from the taxing districts a property falls within. Properties in different locations, even within the same parish, can have different total millage rates. Some base millages are levied without voter approval; additional millages typically require local voter approval. Millage rates can be adjusted after a statewide reassessment to prevent automatic tax collection changes due to property value shifts.

The Louisiana Homestead Exemption

The Louisiana Homestead Exemption reduces the taxable assessed value of a homeowner’s primary residence. This exemption applies to the first $7,500 of a homestead’s assessed value, or $75,000 of its fair market value.

To qualify, a homeowner must own and occupy the property as their primary residence by December 31st of the tax year. Only one homestead exemption can be claimed per individual. To apply, homeowners visit their parish assessor’s office with required documentation, such as a recorded act of sale and photo identification showing the property’s address. Once approved, the exemption generally remains in place as long as the homeowner continues to meet the eligibility requirements.

Calculating Your Expected Property Tax

To calculate property tax, combine the assessed value, any applicable homestead exemption, and the total millage rate. First, determine the assessed value of your property by taking 10% of its fair market value for residential properties. Next, subtract the $7,500 homestead exemption from this assessed value if you qualify, resulting in your net taxable assessed value.

Apply the total millage rate to this net taxable assessed value by dividing the millage rate by 1,000 and multiplying by the net taxable assessed value. For example, if a home has a fair market value of $150,000, its assessed value is $15,000 (10% of $150,000). With the homestead exemption, the taxable assessed value becomes $7,500 ($15,000 – $7,500). If the total millage rate is 100 mills, the property tax due would be $750 ($7,500 x (100/1,000)). Without the homestead exemption, the tax would be $1,500 ($15,000 x (100/1,000)). This calculation provides an estimate, as actual bills may include other local fees.

Managing Your Property Tax Payments

Property tax bills are typically mailed by the end of November and are due by December 31st of the current tax year. Failure to pay by the deadline can result in penalties and interest charges, usually at a rate of 1% per month on the unpaid amount. If taxes remain unpaid, the property may eventually be sold at a tax sale.

Payment options include online payments, mailing a check, or paying in person at the parish sheriff’s or tax collector’s office. It is advisable to contact the specific parish’s tax collector or sheriff’s office to confirm accepted payment methods and exact deadlines. Questions regarding the assessment should be directed to the assessor’s office, while payment inquiries go to the tax collector.

Other Tax Relief Programs

Louisiana offers additional property tax relief programs beyond the homestead exemption. One program is the Special Assessment Level, or “freeze,” which can prevent the assessed value of a homestead from increasing for qualifying seniors and individuals with disabilities. To qualify, the property owner must typically be 65 or older, or have a permanent and total disability, and meet income requirements. This freeze applies only to the assessed value, meaning the tax bill could still change if millage rates increase.

Veterans with service-connected disabilities may also qualify for additional exemptions. Those with a 50-69% disability rating may receive an additional exemption on $2,500 of assessed value, while those with a 70-99% rating may receive an additional $4,500 exemption. Veterans with a 100% service-connected disability rating can be fully exempt from ad valorem taxation, with some municipal tax exceptions. Eligibility and application procedures for these programs require specific documentation and should be confirmed with the local assessor’s office or the Louisiana Department of Veterans Affairs.