Louisiana Ranks As The Third Most Tax-Friendly State In The U.S.
According to the personal finance magazine Kiplinger, Louisiana is the third most tax-friendly state in the nation.
Senior Associate Editor Sandy Block says Kiplinger's rankings were based on rates for income, sales and gas taxes. She says a big boost for Louisiana is its property taxes, which are the lowest in the nation.
"That's a big help for a lot of people, because up North in places like New York and New Jersey, property taxes can be 10 times what they are in Louisiana," said Block.
Property taxes can be 10 times what they are in Louisiana
Block says property in Louisiana is assessed at 10 percent of its fair market value. She also says the state's gas tax is well below average at 20 cents a gallon. Block says as a result, Louisiana is a very tax-friendly place for retirees.
"In a few weeks, additional issues will be addressed — such as whether or not social security is taxed," said Block. "And Louisiana continues to do well in all of those categories, too."
Block says the most tax-friendly state is Delaware, followed by Wyoming, then Mississippi and Alabama are ranked just below Louisiana.
She says Kiplinger has a tax map tool on its website, kiplinger.com, to help people make the most financially sound decision when considering a move to another state.
"This is a helpful tool to figure out just how much of your income would go to state and local taxes," said Block.