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TAX & LICENSE / STATE TAX SYSTEM

State of Louisiana

Louisiana Tax Commission
https://www.latax.state.la.us

Louisiana Department of Revenue
https://revenue.louisiana.gov

State Income Tax
Louisiana collects income taxes from its residents utilizing three tax brackets.
For single taxpayers, they are:
2 percent on the first $12,500 of taxable income.
4 percent on taxable income between $12,501 and $50,000.
6 percent on taxable income of $50,001 and above.
For married persons filing joint returns, the rates remain the same but the income brackets are doubled. Residents need to file Form IT-540, which is due by May 15.

Sales & Use Taxes
The sales tax rate in Louisiana is 4.45 percent: a 3.97 percent Louisiana sales tax and a 0.03 percent Louisiana Tourism Promotion District sales tax. Political subdivisions also levy their own sales tax in addition to the state fees.

The state also has a use tax of 8 percent applied toward goods purchased out of state, which includes 4 percent to be distributed by the Department of Revenue to local governments. The use tax is in lieu of the actual local rate in effect in your area, and is payable regardless of whether the actual combined state and local rate in your area is equal to, higher than or lower than 8 percent.

Real Property Tax
Property taxes are assessed and collected at the local level — 64 parishes and 7 municipal districts — and not by the Louisiana Department of Revenue. The Louisiana Tax Commission has a regulatory role regarding property assessments.

Taxpayers having property in the state of Louisiana are required to file a property tax return with the assessor of any parish and any municipality levying a tax on or before April 1 or within 45 days of receipt of the return form, whichever is later, furnishing values as of Jan. 1.

Property subject to ad valorem taxation is listed on the assessment rolls at its assessed valuation, which, less some exceptions, is a percentage of its fair market value. The percentage of fair market value is uniform throughout the state upon the same class of property.
Louisiana offers a homestead exemption on the first $7,500 of the value of a person’s primary residence. The exemption, however, does not usually apply to municipal taxes.

State of Mississippi

Mississippi Department of Revenue
https://www.dor.ms.gov

State Income Tax
Mississippi collects income taxes from its residents utilizing three tax brackets.
For single taxpayers:
3 percent on the first $5,000 of taxable income.
4 percent on taxable income between $5,001 and $10,000.
5 percent on taxable income of $10,001 and above.

Married couples filing a combined return (i.e., both spouses work) can opt to have each spouse calculate tax liability separately and add the results.

Retirement income, pensions and annuities generally are not subject to Mississippi income tax.
Since Jan. 1, 2002, Mississippi income tax law has required casinos to withhold a nonrefundable income tax at the rate of 3 percent on gambling winnings that are required to be reported to the Internal Revenue Service.
Residents should file tax returns by April 15 or the next business day if that date falls on a weekend or holiday.

Sales & Use Taxes
The retail sales and use tax rate in Mississippi is 7 percent. Tourism and economic development taxes also are collected in some jurisdictions.

Real Property Tax
For purposes of assessment for ad valorem taxes, taxable property is divided into five classes and is assessed at a percentage of its true value as follows:
Class I — Single-family owner-occupied, residential real property: 10 percent.
Class II — All other real property: 15 percent.
Class III — Personal property: 15 percent.
Class IV — Public service property assessed by the state or county: 30 percent.
Class V — Motor vehicles: 30 percent.