State Income Tax
: 2% to 6% State Sales Tax
: 4% Estate Tax/Inheritance Tax
For retirees, every day is like Mardi Gras in Louisiana. Social Security and military, civil service, and state and local government pensions are exempt from state income taxes, plus up to $6,000 per person of pension and annuity income. Personal income tax rates max out at 6% on taxable income over $50,000. Property taxes are among the lowest in the nation, according to the Tax Foundation. Assessments are based on 10% of the fair market value. Homeowners receive a homestead exemption of $7,500 of their home's assessed value, and homeowners 65 and older may qualify for a freeze on the value of their home. But sales taxes can be steep. The statewide sales tax is 4%, and local parishes and jurisdictions within those parishes can add their own sales taxes. Louisiana's average combined sales tax rate of 8.86% ranks third-highest in the nation, according to the Tax Foundation. But food and drugs are exempt from sales taxes throughout the state.
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: Kiplinger’s State-by-State Guide to Retiree Taxes 10 Things You Must Know About Social Security 12 Smart Year-End Tax Moves for 2012 The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.