Louisiana - State Economic Profile
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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 |
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-yearAbsolute Domestic Migration
Non-Farm Payroll Employment
Growth, year-over-yearEmail Signup:
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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 CloseKeep up-to-date on the latest news
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If you see this, do not fill it out. Only bots should see this. Email* ZIP Code* SubmitTag » Why Is Louisiana So Poor
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