Kiplinger: Louisiana Is Sixth Most Tax-friendly State
According to the personal finance website Kiplinger, Louisiana is the sixth most tax-friendly state in the US. Sandra Block with Kiplinger says Louisiana’s property taxes are the third lowest in the country, and the state also did well in other categories.
“Your gas taxes are well below the national average. You do have an income tax, unlike some of the other states on our list that have no income tax, but it’s very low,” Block said.
Louisiana’s gas tax is 10 cents below the national average, and the income tax rate is about 3%. Block says Louisiana did not do well in the sales tax category, as the state sales tax is now up to 5 cents.
“Often states that have low or no income tax will have to make it up somewhere else, and very often is does come out in state and local sales taxes,” Block said.
Wyoming came in first in the study as the most tax-friendly state, and California came in last. Block says there are tradeoffs in states with lower taxes, because there are less dollars for schools, public services, and roads.
“What we’re seeing across the country is states trying to balance the desire to keep taxes low and the need to improve their infrastructure, which in a lot of states is really in bad shape,” Block said.