With a 4.25% top income tax rate and 0.55% property tax, Louisiana homeowners face a moderate combined tax burden. This calculator is pre-filled with Louisiana numbers: $210,000 median price, 0.55% property tax, $3,400/year insurance.
Last updated: March 13, 2026
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Monthly Payment (Louisiana)$0
Loan Details — Louisiana
Louisiana median: $210,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Louisiana average: 0.55%
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Louisiana average: $3,400/yr
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Property Tax
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Louisiana Metro Area Home Prices
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Yearly Amortization Schedule+
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Louisiana's Tax Landscape and Your Mortgage
Louisiana levies a flat 4.25% income tax on all taxable income. A household earning $150,000 pays approximately $4,781 in state income tax, which reduces the amount available for monthly mortgage payments by roughly $398/month.
At the state's median home price of $210,000, the $0.55% property tax rate adds $96/month to your mortgage payment. That's $1,155/year — below the national median of ~1.1%.
Property Taxes Across Louisiana
The 0.55% statewide average masks significant variation. Extremely generous homestead exemption ($75,000 assessed value) effectively eliminates property tax for many homeowners
Price ranges across the state: New Orleans has a median of $255,000, while Lafayette sits at $215,000 — a $40,000 gap that dramatically changes your monthly payment. At $0.55% property tax, that price difference alone means $18/month more in property tax in New Orleans.
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Homebuyer Programs and Exemptions
Louisiana offers several programs for homebuyers:
LHC Resilience Soft Second program
Market Rate GNMA program with competitive rates
Homestead exemption: First $75,000 of assessed value exempt from parish taxes (one of the most generous in the nation)
Louisiana-Specific Considerations
Extremely generous homestead exemption ($75,000 assessed value) effectively eliminates property tax for many homeowners
Insurance costs are among the highest in the nation due to hurricane risk — many insurers have exited the state
Flood insurance is required in many areas ($800–$5,000/year)
Low property taxes offset by very high insurance
Combined sales tax rates (state + local) often exceed 10%
Property tax rates vary by parish — Orleans Parish (New Orleans) ~1.0% vs many rural parishes under 0.5% due to generous homestead exemptions
Insurance Costs in Louisiana
At $3,400/year, Louisiana's average homeowners insurance premium is more than double the national average of approximately $1,500/year. That's $283/month added to your housing cost — a factor that's easy to overlook when comparing states. Insurance costs are among the highest in the nation due to hurricane risk — many insurers have exited the state
Compare Louisiana Mortgage Rates
See personalized rates from Louisiana lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
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1.04% property tax, no income tax. Median home: $340,000.
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Louisiana?
The average effective property tax rate in Louisiana is 0.55%. On a $210,000 home (the state median), that works out to approximately $1,155/year or $96/month added to your mortgage payment. Property tax rates vary by county and school district within Louisiana — always check your specific jurisdiction's rate. Homestead exemption: First $75,000 of assessed value exempt from parish taxes (one of the most generous in the nation)
How much does homeowners insurance cost in Louisiana?
The average annual homeowners insurance premium in Louisiana is approximately $3,400 ($283/month). This is well above the national average of approximately $1,500/year, largely driven by natural disaster risk in the state. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Louisiana?
LHC Resilience Soft Second program. Market Rate GNMA program with competitive rates. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Louisiana housing finance agency website for current eligibility requirements and application deadlines.
How does Louisiana's 4.25% income tax affect home affordability?
Louisiana's top income tax rate of 4.25% reduces your take-home pay, which affects how much mortgage you can comfortably carry. On a $150,000 salary, state income tax takes roughly $4,144-$5,419/year (effective rate is lower than the top marginal rate). The tradeoff: Louisiana's relatively low 0.55% property tax rate keeps the housing-specific portion of your tax burden lower. Use our paycheck calculator to see your exact take-home pay.
What is the conforming loan limit in Louisiana?
The 2026 conforming loan limit in Louisiana is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Louisiana state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.