Guide · Louisiana
Pros and cons of living in Louisiana
The main pros of living in Louisiana are lower prices (88.2% of the U.S. average in 2024), lower home values ($216,500 median against $332,700 nationally), a flat 3% income tax, the homestead exemption and cheaper electricity. The main cons are the highest average sales tax in the country (about 10.1%), high homeowners insurance, a June-to-November hurricane season and the need to budget for flood insurance. Figures checked October 29, 2026.
Reviewed by Nicole Gaudet, REALTOR®
Updated October 29, 2026
At a glance
The pros and cons, side by side
Each line is a fact with a source further down the page. Whether it is a pro or a con depends on what you need from a place.
Pros
- Prices at 88.2% of the U.S. average in 2024 (BEA)
- Median home value of $216,500, against $332,700 nationally (Census, 2020–2024)
- A flat 3% state income tax since 2025
- Homestead exemption on about the first $75,000 of a primary home’s value
- Home electricity about 29% below the U.S. average (EIA, August 2026)
Cons
- Average combined sales tax of about 10.1%, the highest of any state (Tax Foundation)
- Average homeowners premium of $2,603 in 2022, second highest in the U.S.
- Hurricane season runs June 1 to November 30
- Homeowners policies do not cover flood; it is a separate policy
- Median household income of $60,756, against $80,734 nationally
Sources for every line are listed in the sections below.
Cost and homes
What it costs to live in Louisiana
Price levels from the Bureau of Economic Analysis (U.S. = 100) and Census five-year averages. Census figures describe what people already pay, not today’s asking prices.
| Measure | Louisiana | U.S. |
|---|---|---|
| Overall price level, 2024 | 88.2 (Baton Rouge 90.8, New Orleans–Metairie 92.6, Lafayette 87.2) | 100 |
| 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 |
| Median household income | $60,756 | $80,734 |
| Residential electricity, August 2026 (preliminary) | 12.87¢ per kWh | 18.16¢ per kWh |
Sources: BEA Regional Price Parities via FRED, Louisiana; Baton Rouge MSA; New Orleans-Metairie MSA; Lafayette MSA; U.S. Census Bureau QuickFacts, Louisiana; U.S. Census Bureau QuickFacts, United States; EIA, Electric Power Monthly, table 5.6.A.
Taxes
A low income tax, a high sales tax
Louisiana changed its income and sales taxes in 2025.
The 2025 standard deduction is $12,500 for single filers and $25,000 for married couples filing jointly. Homestead covers state, parish and special property taxes, not city taxes outside Orleans Parish, and you have to apply for it. See our homestead exemption guide and cost of living in Louisiana.
Sources: Louisiana Department of Revenue, income tax rates; LDR, 2025 IT-540 instructions; Tax Foundation, 2026 midyear sales tax rates; Louisiana Constitution, Art. VII, Sec. 20.
Weather and insurance
Heat, hurricanes and insurance
This is the biggest trade-off for most people moving from outside the Gulf South. Price insurance before you make an offer.
Louisiana homeowners policies do not cover flood. If a home is in a Special Flood Hazard Area and you have a government-backed mortgage, flood insurance is required, and a new policy typically takes 30 days to take effect. Check the address before you buy: see our flood zones and insurance guide and buyer closing costs.
Sources: Insurance Information Institute, homeowners premiums by state (2022, NAIC data); Louisiana Department of Insurance, hurricane season tips; National Hurricane Center, tropical cyclone climatology; NOAA NCEI 1991-2020 normals, Baton Rouge Ryan Airport; Louisiana Department of Insurance, Flood; FloodSmart, who needs flood insurance.
Food and culture
Food, festivals and game days
The part that does not fit in a table. Our local guides list places we checked one by one.
Baton Rouge: the State Capitol, LSU, museums and yearly events in things to do in Baton Rouge and Baton Rouge restaurants.
Acadiana: museums and live music in things to do in Lafayette.
Ascension and the River Parishes: Gonzales, Prairieville and LaPlace.
New Orleans: living in New Orleans.
Questions
Living in Louisiana: questions
What are the pros and cons of living in Louisiana?
Pros: prices at 88.2% of the U.S. average (2024), a $216,500 median home value against $332,700 nationally, a flat 3% income tax, the homestead exemption and cheaper electricity. Cons: an average combined sales tax of about 10.1%, the highest of any state, high homeowners insurance, hurricane season from June 1 to November 30, and separate flood insurance.
BEA; U.S. Census Bureau; Louisiana Department of Revenue; Tax Foundation; Insurance Information Institute; National Hurricane Center
Is Louisiana a cheap place to live?
Overall prices in Louisiana were 88.2% of the U.S. average in 2024, per the Bureau of Economic Analysis. Housing is the biggest gap: the median home value is $216,500 against $332,700 nationally. Insurance and sales tax run higher than average.
BEA via FRED; U.S. Census Bureau QuickFacts
Does Louisiana have a state income tax?
Yes. Since January 1, 2025 it is a flat 3% for all filers, and filers 65 and older can exclude up to $12,000 a year of retirement income.
Louisiana Department of Revenue
Why is homeowners insurance so expensive in Louisiana?
Louisiana's average homeowners premium was $2,603 in 2022, second highest in the U.S., per the Insurance Information Institute using NAIC data. Policies also carry separate named-storm or hurricane deductibles, typically 2 to 5% of insured value, per the Louisiana Department of Insurance.
Insurance Information Institute; Louisiana Department of Insurance
Do I need flood insurance in Louisiana?
Homeowners policies in Louisiana do not cover flood. Flood insurance is required if the home is in a Special Flood Hazard Area and you have a government-backed mortgage, and some lenders require it elsewhere.
Louisiana Department of Insurance; FloodSmart
Keep reading
Next
Next step
Thinking of moving to Louisiana?
Tell us where you work and what you need. We will show you what homes cost in the areas that fit, and what insurance and flood look like for each one.
Nicole Spellman Group serves Baton Rouge, Ascension, Livingston, Acadiana and the New Orleans metro.