New Orleans homeowners may take some comfort in knowing that despite an almost 20% rise in housing prices compared to last year, the state of Louisiana still possesses one of the 4th lowest rates of property tax in the country.
This information comes via a 2022 report on national property taxes by the personal finance site WalletHub. This report compares home and vehicle taxes across the nation and features insights offered by a wide panel of experts.
To be specific, Louisiana's effective real estate tax rate is at .55%, while the annual tax cost on an average-value home sits at about $890. To put this in context, the average homeowner in the US spends about $2,471 annually, while the average vehicle tax payer spends another $445 annually (in contrast to Louisiana's average of $25). Currently, the highest rate of property taxes in the country is paid by residents of New Jersey, with a rate of 2.49% and the tax cost of living in an average-value home being $8,362, while the lowest rate belongs to Hawaii at .28% with $1,715 spent annually for a home priced at the state median.
These numbers obviously bode well for those considering purchasing property within Louisiana, but it also applies to renters, (who make up about 36% of the total population today). Whether directly or indirectly, all citizen homeowners pay their dues in property taxes as they impact rent costs in addition to the finances of state and local governments. Over the past decade, Louisiana has steadily maintained its position in the country as one of the states with the smallest rate of real estate tax. As per the 2022 study, the average home value in Louisiana is about $163,100 compared to the US median of $217,500.