Louisiana Mortgage Calculator

Mortgage Calculator in Louisiana

The median home price in Louisiana is $195,000, which is 54% below the national average of $420,000. Louisiana's effective property tax rate of 0.55% is 0.55 percentage points lower than the national average of 1.1%.

Metric	Louisiana (LA)	National Avg	vs National Average
Median Home Price	$195,000	$420,000	-54%
Property Tax Rate	0.55%	1.1%	-0.55%
Home Insurance (Annual)	$3,600	$2,300	+57%
State Sales Tax	4.45%	5%	-0.5%
FHA Loan Limit	$472,030	$472,030	Standard
Conforming Loan Limit	$766,550	$766,550	Standard

Louisiana offers a homestead exemption of $75,000, which reduces the taxable value of your primary residence. The state uses an assessment ratio of 10% to determine the assessed value for property tax purposes.

Homeownership in Louisiana

Louisiana has one of the most favorable property tax structures in the country -- a 0.55% effective rate combined with an assessment ratio of just 10% of market value and a $75,000 homestead exemption means many modest homeowners owe little or no property tax. However, the state's exposure to hurricanes drives home insurance premiums to an average of $3,600 per year, with coastal areas paying far more. New Orleans, Baton Rouge, and Shreveport each have distinct market dynamics.

Tips for Louisiana Homebuyers and Homeowners

• The Louisiana Homestead Exemption of $75,000 exempts the first $75,000 of assessed value (which is already 10% of market value) from property taxes -- meaning homes worth $750,000 or less with the exemption may pay minimal property tax.
• Home insurance in coastal Louisiana is extremely expensive -- Lloyd's syndicates and surplus lines are sometimes the only coverage available in high-risk parishes, at prices that can triple or quadruple standard rates.
• Louisiana's tax structure for homeowners is among the most favorable in the country -- combined property, income, and sales tax burdens are relatively low for homeowners who don't commute or spend heavily.
• New Orleans has unique architectural regulations, particularly in historic districts -- renovation costs are higher due to preservation requirements, and flood insurance is a mandatory additional cost in most flood zones.

Louisiana Programs and Assistance

• Louisiana Housing Corporation (LHC) Market Rate GNMA Program -- below-market FHA and VA mortgages available statewide through participating lenders.
• LHC Soft Second Program -- provides a second mortgage for down payment assistance at 0% interest, deferred for 30 years if the buyer remains in the home.
• The Road Home Program (historic) -- no longer active for post-Katrina grants, but awareness of the program explains some of the elevated property renovation in affected neighborhoods.

Did you know? Louisiana's combination of a 10% assessment ratio and a $75,000 homestead exemption means a home valued at $750,000 could have an effective tax bill of $0 for an owner-occupant -- the most generous homestead relief of any state in the country.