Louisiana - State Economic Profile

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18th

Economic Outlook Rank

Louisiana is currently ranked 18th in the United States for its economic outlook. This is a forward-looking forecast based on the state’s standing (equal-weighted average) in 15 important state policy variables. Data reflect state and local rates and revenues and any effect of federal deductibility.

Louisiana is currently ranked 18th in the United States for its economic outlook. This is a forward-looking forecast based on the state’s standing (equal-weighted average) in 15 important state policy variables. Data reflect state and local rates and revenues and any effect of federal deductibility.

  • Current (2025)
  • Rank Trends
  • Trends Charts
  • Trends Data
  • Adjust Policies

Current Economic Outlook (2025)

From the 2025 edition of Rich States, Poor States. These values are the most recent available at the time of publication.
Policy Value Rank
Top Marginal Personal Income Tax Rate 3.00% 12th
Top Marginal Corporate Income Tax Rate 4.35% 10th
Personal Income Tax Progressivity (change in tax liability per $1,000 of income) $5.00 19th
Property Tax Burden (per $1,000 of personal income) $19.19 5th
Sales Tax Burden (per $1,000 of personal income) $41.65 47th
Remaining Tax Burden (per $1,000 of personal income) $16.98 25th
Estate / Inheritance Tax Levied? No 1st
Recently Legislated Tax Changes -$2.80 14th
Debt Service as a Share of Tax Revenue 4.43% 31st
Public Employees Per 10,000 of Population (full-time equivalent) 560.1 38th
State Liability System Costs (as a share of state GDP) 2.65% 48th
State Minimum Wage (federal floor is $7.25) $7.25 1st
Average Workers' Compensation Costs (per $100 of payroll) $2.13 46th
Right-to-Work State? (option to join or support a union) Yes 1st
Tax Expenditure Limits 2 3rd

Outlook Rank Trends (2008 - 2025)

Each edition's rank is based on the most recent data available at the time of publication.
Policy 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Overall Rank 24th 18th 16th 15th 19th 28th 29th 26th 28th 28th 27th 27th 30th 22nd 20th 26th 31st 18th
Top Marginal Personal Income Tax Rate 11th 11th 11th 10th 10th 10th 11th 11th 11th 11th 11th 11th 11th 11th 10th 13th 13th 12th
Top Marginal Corporate Income Tax Rate 12th 12th 11th 11th 12th 12th 12th 13th 13th 14th 18th 18th 19th 20th 19th 20th 21st 10th
Personal Income Tax Progressivity (change in tax liability per $1,000 of income) 26th 28th 28th 29th 29th 27th 29th 30th 30th 30th 29th 29th 28th 28th 18th 27th 25th 19th
Property Tax Burden (per $1,000 of personal income) 7th 7th 6th 6th 6th 6th 6th 6th 7th 7th 5th 8th 8th 6th 6th 5th 5th 5th
Sales Tax Burden (per $1,000 of personal income) 48th 48th 48th 47th 47th 46th 47th 47th 45th 26th 45th 46th 49th 49th 47th 46th 46th 47th
Remaining Tax Burden (per $1,000 of personal income) 29th 27th 25th 22nd 33rd 28th 27th 17th 16th 41st 23rd 17th 28th 23rd 23rd 19th 20th 25th
Estate / Inheritance Tax Levied? 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st
Recently Legislated Tax Changes 18th 1st 1st 6th 9th 26th 24th 28th 48th 50th 49th 40th 45th 9th 16th 28th 49th 14th
Debt Service as a Share of Tax Revenue 37th 32nd 30th 35th 37th 45th 44th 41st 35th 35th 39th 43rd 35th 31st 28th 30th 27th 31st
Public Employees Per 10,000 of Population (full-time equivalent) 42nd 41st 42nd 41st 41st 42nd 39th 36th 39th 35th 35th 37th 37th 36th 39th 39th 38th 38th
State Liability System Costs (as a share of state GDP) 48th 49th 49th 49th 49th 49th 49th 49th 49th 49th 50th 50th 49th 49th 49th 49th 49th 48th
State Minimum Wage (federal floor is $7.25) 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st
Average Workers' Compensation Costs (per $100 of payroll) 40th 39th 39th 26th 26th 36th 36th 41st 41st 41st 41st 41st 41st 43rd 43rd 46th 46th 46th
Right-to-Work State? (option to join or support a union) 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st 1st
Tax Expenditure Limits 4th 4th 4th 4th 4th 4th 3rd 3rd 3rd 3rd 3rd 3rd 3rd 3rd 3rd 3rd 3rd 3rd

Economic Outlook Trends Charts

The y-axis for these charts is the actual year of the data, rather than the year of the corresponding publication year.

Top Marginal Personal Income Tax Rate

This variable includes state and local taxes, if any, and any impact of federal deductibility, if allowed. A state’s largest city is used as a proxy for local tax rates. Data were drawn from Tax Analysts, Federation of Tax Administrators, and individual state tax forms. Tax rates are as of January 1, 2025.

Top Marginal Corporate Income Tax Rate

This variable includes local taxes, if any, and includes the effect of federal deductibility, if allowed. A state’s largest city is used as a proxy for local tax rates. In the case of gross receipts or business franchise taxes, an effective tax rate is approximated using NIPA profits, rental and proprietor’s income and gross domestic product data. The Texas franchise tax is not a traditional gross receipts tax, but is instead a “margin” tax with more than one rate. A margin tax creates less distortion than a gross receipts tax. Therefore, we believe the best measurement for an effective corporate tax rate for Texas is to average the 4.27 percent measure we would use if the tax were a gross receipts tax and the 0.75 percent highest rate on its margin tax, leading to our measure of 2.66%. Data were drawn from Tax Analysts, Federation of Tax Administrators, individual state tax forms, and the Bureau of Economic Analysis. Tax rates are as of January 1, 2025.

Personal Income Tax Progressivity (change in tax liability per $1,000 of income)

This variable is measured as the difference between the average tax liability per $1,000 at incomes of $50,000 and $150,000. The tax liabilities are measured using a combination of effective tax rates, exemptions, and deductions at both state and federal levels, with calculations from Laffer Associates. Tax rates are as of January 1, 2025.

Property Tax Burden (per $1,000 of personal income)

This variable is calculated as the amount of tax revenues from state and local property taxes per $1,000 of personal income. We have used U.S. Census Bureau data, for which the most recent year available is 2022. These data were released in October 2024.

Sales Tax Burden (per $1,000 of personal income)

This variable is calculated as the amount of tax revenues from state and local sales taxes per $1,000 of personal income. Sales taxes taken into consideration include the general sales tax and specific sales taxes. We use U.S. Census Bureau data, for which the most recent year available is 2022. These data were released in October 2024. Where appropriate, gross receipts or business franchise taxes, counted as sales taxes in the Census data, are subtracted from a state’s total sales taxes in order to avoid double-counting tax burden in a state.

Remaining Tax Burden (per $1,000 of personal income)

This variable is calculated as the amount of tax revenues from state and local taxes—excluding personal income, corporate income, property, sales, and severance—per $1,000 of personal income. We use U.S. Census Bureau data, for which the most recent available year is 2022. These data were released in October 2024.

Recently Legislated Tax Changes

This variable is calculated as each state’s relative change in tax burden over a two-year period (in this case, 2023 and 2024 legislative sessions) for the next fiscal year, using revenue estimates of legislated tax changes per $1,000 of personal income. Personal income data are from 2023. This timeframe ensures that tax changes will still be reflected in a state’s rankings despite lags in revenue data. ALEC and Laffer Associates calculations use raw data from state legislative fiscal notes and other sources.

Debt Service as a Share of Tax Revenue

This variable is calculated as the interest paid on state and local debt as a percentage of state and local tax revenue. This information comes from 2022 U.S. Census Bureau data. These data were released in October 2024.

Public Employees Per 10,000 of Population (full-time equivalent)

This variable is calculated as the full-time equivalent state and local public employees per 10,000 of state population. This information comes from 2023 U.S. Census Bureau data. These data were released in May 2024.

State Liability System Costs (as a share of state GDP)

This variable ranks the costs of tort systems by state, as a share of that state’s GDP. Data come from the report Tort Costs in America, Third Edition, published by the U.S. Chamber of Commerce Institute for Legal Reform in November 2024. This variable reflects tort costs in 2022.

State Minimum Wage (federal floor is $7.25)

This variable indicates minimum wage enforced on a state-by-state basis. If a state does not have a minimum wage, we use the federal minimum wage floor of $7.25 per hour. This information comes from the U.S. Department of Labor, as of January 1, 2025.

Average Workers' Compensation Costs (per $100 of payroll)

This variable highlights the 2022 Workers’ Compensation Index Rate (cost per $100 of payroll). This survey is conducted biennially by the Oregon Department of Consumer and Business Services.

Tax Expenditure Limits

This variable measures the influence of tax and expenditure limits on state tax revenue and spending. It is based on the presence of (1) technical tax and expenditure limits, (2) mandatory voter approval of tax increases, and (3) supermajority requirements for tax increases. Information was sourced from state constitutions and statutes.

Economic Outlook Trends Data (2008 - 2025)

Years correspond to the year of the Rich States, Poor States publication, not the actual year of the data. In some cases the data is significantly behind the publication's year.
Policy 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Top Marginal Personal Income Tax Rate 3.90% 3.90% 3.90% 3.90% 3.90% 3.62% 3.62% 3.62% 3.62% 3.62% 3.78% 3.78% 3.78% 3.78% 2.68% 4.25% 4.25% 3.00%
Top Marginal Corporate Income Tax Rate 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 5.20% 6.32% 6.32% 6.32% 6.32% 5.93% 5.93% 5.93% 4.35%
Personal Income Tax Progressivity (change in tax liability per $1,000 of income) $8.35 $9.15 $9.15 $8.35 $10.25 $10.21 $10.19 $10.17 $10.16 $10.15 $11.00 $11.04 $11.04 $11.10 $5.02 $9.63 $9.63 $5.00
Property Tax Burden (per $1,000 of personal income) $19.04 $21.42 $17.57 $17.32 $18.88 $20.66 $20.42 $20.10 $20.86 $20.60 $20.44 $20.84 $20.78 $19.82 $19.64 $18.44 $18.80 $19.19
Sales Tax Burden (per $1,000 of personal income) $44.84 $38.22 $47.41 $43.37 $40.04 $37.50 $37.84 $36.78 $35.98 $36.63 $35.78 $37.45 $42.72 $41.05 $37.41 $34.85 $37.52 $41.65
Remaining Tax Burden (per $1,000 of personal income) $20.02 $19.04 $18.50 $17.34 $19.33 $19.52 $18.42 $16.61 $16.07 $16.65 $16.71 $15.55 $18.34 $16.97 $16.46 $14.73 $15.54 $16.98
Estate / Inheritance Tax Levied? No No No No No No No No No No No No No No No No No No
Recently Legislated Tax Changes -$0.24 -$6.10 -$10.70 -$4.72 -$0.19 $0.00 -$0.02 -$0.02 $3.32 $10.89 $7.64 $2.09 $2.09 -$0.11 -$0.12 -$0.01 $0.06 -$2.80
Debt Service as a Share of Tax Revenue 10.30% 8.20% 8.40% 8.80% 9.90% 11.60% 11.40% 10.30% 8.97% 8.79% 8.70% 8.70% 7.30% 6.90% 6.16% 6.18% 5.45% 4.43%
Public Employees Per 10,000 of Population (full-time equivalent) 643.2 615.4 639.8 616.4 610.2 615.5 589.8 555.5 565.45 555.13 551.7 553.6 553.7 556.8 572.6 561.2 555.4 560.1
State Liability System Costs (as a share of state GDP) 47.3 42.9 42.9 39.6 39.6 46.5 46.5 46.5 46.5 46.5 56.6 56.6 60 60 60 60 60 2.65%
State Minimum Wage (federal floor is $7.25) $5.85 $6.55 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25
Average Workers' Compensation Costs (per $100 of payroll) $3.10 $2.76 $2.76 $2.06 $2.06 $2.06 $2.06 $2.23 $2.23 $2.11 $2.11 $2.05 $2.05 $1.95 $1.95 $2.13 $2.13 $2.13
Right-to-Work State? (option to join or support a union) Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Tax Expenditure Limits 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

Adjusted Economic Outlook Rank:

Policy Rank Value
Top Marginal Personal Income Tax Rate
Top Marginal Corporate Income Tax Rate
Personal Income Tax Progressivity
Property Tax Burden
Sales Tax Burden
Remaining Tax Burden
Estate / Inheritance Tax Levied?
Recently Legislated Tax Changes
Debt Service as a Share of Tax Revenue
Public Employees Per 10,000 of Population
State Liability System Costs
State Minimum Wage
Average Workers' Compensation Costs
Right-to-Work State?
Tax Expenditure Limits
Reset Data
50th

Economic Performance Rank

Louisiana is currently ranked 50th in the United States for its economic performance. This rank is a backward-looking measure based on the state’s performance (equal-weighted average) in three important performance variables shown below. These variables are highly influenced by state policy.

Louisiana is currently ranked 50th in the United States for its economic performance. This rank is a backward-looking measure based on the state’s performance (equal-weighted average) in three important performance variables shown below. These variables are highly influenced by state policy.

  • Overview (2025)
  • Charts (2025)

Overview (2025 Edition)

Metric Value Rank
Cumulative GDP Growth, 2013 - 2023 35.97% 48th
Cumulative Domestic Migration, 2014 - 2023 -237,259 43rd
Non-Farm Employment Growth, 2013 - 2023 -0.78% 47th

Charts (2025 Edition)

State Gross Domestic Product

Growth, year-over-year

Absolute Domestic Migration

Non-Farm Payroll Employment

Growth, year-over-year
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Rich States, Poor States 18th Edition

The 18th edition of Rich States, Poor States: ALEC-Laffer State Economic Competitiveness Index features an evaluation of each independent state and key areas of policy in that state to better… Download Now Close

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