Guide · Louisiana
Cost of living in Louisiana
Prices in Louisiana ran at 88.2% of the U.S. average in 2024, per the Bureau of Economic Analysis. Baton Rouge was 90.8, New Orleans–Metairie 92.6 and Lafayette 87.2. The median home value is $216,500 against $332,700 nationally. The state income tax has been a flat 3% since 2025, and electricity runs about 29% below the U.S. average. Sales tax is the exception: the average combined rate, about 10.1%, is the highest in the country. Figures checked October 29, 2026.
Reviewed by Nicole Gaudet, REALTOR®
Updated October 29, 2026
Prices
How Louisiana prices compare
Regional Price Parities set the U.S. average at 100. Lower means cheaper. These are 2024 figures; the 2025 update is due December 10, 2026.
| Area | Price level (U.S. = 100) | Year |
|---|---|---|
| Louisiana | 88.2 | 2024 |
| Baton Rouge metro | 90.8 | 2024 |
| New Orleans–Metairie metro | 92.6 | 2024 |
| Lafayette metro | 87.2 | 2024 |
| Louisiana rents (housing services) | 63.1 | 2024 |
Sources: BEA Regional Price Parities via FRED, Louisiana; Baton Rouge MSA; New Orleans–Metairie MSA; Lafayette MSA; Louisiana housing services; BEA release, February 19, 2026.
Housing
Housing costs: Louisiana vs. the U.S.
Census five-year averages (2020–2024). These describe what people already pay, not today’s asking prices.
| Measure | Louisiana | U.S. |
|---|---|---|
| Median value, owner-occupied home | $216,500 | $332,700 |
| Median monthly owner cost, with a mortgage | $1,604 | $1,963 |
| Median gross rent | $1,064 | $1,413 |
| Homeownership rate | 67.4% | 65.2% |
| Median household income | $60,756 | $80,734 |
Sources: U.S. Census Bureau QuickFacts, Louisiana; U.S. Census Bureau QuickFacts, United States.
Taxes
State and local taxes
| Tax | What it is | Source |
|---|---|---|
| State income tax | Flat 3% for all filers, for tax years from January 1, 2025. Standard deduction $12,500 single, $25,000 married filing jointly (2025). | Louisiana Department of Revenue |
| Retirement income | Up to $12,000 a year exempt for filers 65 and older (2025). | Louisiana Department of Revenue |
| Sales tax | State rate 5% since January 1, 2025. Local rates add an average of 5.13%, for an average combined rate of about 10.1%, the highest of any state (July 1, 2026). | Louisiana Department of Revenue; Tax Foundation |
| Homestead exemption | The first $7,500 of assessed value of your primary home is exempt from state, parish and special property taxes. Homes are typically assessed at 10% of market value, so that is about the first $75,000. City taxes are not covered except in Orleans Parish. | Louisiana Constitution, Art. VII, §20 |
| Property tax, by parish | Median taxes paid as a share of median home value: East Baton Rouge 0.63%, Ascension 0.51%, Livingston 0.44%, Orleans 0.85% (2024 five-year estimates). | Tax Foundation |
Sources: Louisiana Department of Revenue, income tax rates; LDR, 2025 IT-540 instructions; LDR, state sales tax rate bulletin RIB 25-007; Tax Foundation, 2026 midyear sales tax rates; Louisiana Constitution, Art. VII §20; LouisianaLawHelp, homestead exemption; Tax Foundation, property taxes by county.
Utilities and gas
Electricity, gas and insurance
Prices that change month to month; dates shown.
| Item | Louisiana | U.S. | When |
|---|---|---|---|
| Residential electricity | 12.87¢ per kWh | 18.16¢ per kWh | August 2026 (preliminary) |
| Regular gasoline | $3.749 a gallon (Baton Rouge $3.675) | $4.226 a gallon | October 29, 2026 |
| Homeowners insurance rate changes | +16.2% (2022), +14% (2023), +6.6% (2024), about +4% (2025), +0.1% (2026 through June) | — | Louisiana Department of Insurance data, as reported August 2026 |
Sources: EIA, Electric Power Monthly, table 5.6.A; AAA, Louisiana gas prices; KSLA, Louisiana insurance rates (Aug. 7, 2026).
Questions
Cost of living in Louisiana: questions
Is Louisiana cheaper than the national average?
Yes. In 2024 Louisiana's overall price level was 88.2% of the U.S. average, per the Bureau of Economic Analysis. The Baton Rouge metro was 90.8, New Orleans-Metairie 92.6 and Lafayette 87.2.
U.S. Bureau of Economic Analysis, via FRED
How much do homes cost in Louisiana compared with the U.S.?
The median value of an owner-occupied home in Louisiana is $216,500, against $332,700 nationally. Median gross rent is $1,064, against $1,413 (Census, 2020-2024).
U.S. Census Bureau QuickFacts
What is Louisiana's state income tax rate?
A flat 3% for tax years beginning on or after January 1, 2025. The 2025 standard deduction is $12,500 for single filers and $25,000 for married couples filing jointly.
Louisiana Department of Revenue
How much is the homestead exemption in Louisiana?
The Louisiana Constitution exempts the first $7,500 of assessed value of a primary home from state, parish and special property taxes, which is about the first $75,000 of market value. It does not cover city taxes outside Orleans Parish.
Louisiana Constitution, Art. VII §20
Is electricity expensive in Louisiana?
No. In August 2026 Louisiana homes paid an average 12.87 cents per kWh, against 18.16 cents nationally (preliminary).
U.S. Energy Information Administration
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