Louisiana’s tax climate is getting more competitive, The Center Square writes.
The Tax Foundation’s new 2026 State Tax Competitiveness Index ranks Louisiana 31st—up six spots from last year—as the first full wave of 2024’s sweeping tax reforms begins to show impact.
Those changes include a flat 3% individual income tax, a 5.5% corporate income tax rate, a 5% statewide sales tax through 2029, and a repeal of the corporate franchise tax beginning Jan. 1.
State data shows Louisiana’s economy has now reversed its brief post-reform dip: GDP grew 4% and personal income rose 6.8% in the second quarter of 2025, outpacing national averages. Louisiana still ranks last in the country on sales tax structure—but analysts say the state could climb again next year if lawmakers avoid adding new carve-outs or complexity.
