Cost of Living in Louisiana — Housing, Taxes & Everyday Expenses
Affordable, unique culture, energy economy
Data: 2026-Q2 · BLS · HUD · KFFOverview
Louisiana offers below-average costs with a unique cultural heritage. New Orleans is a major tourism and culture center. The energy sector drives much of the state economy.
Housing costs
Median 1BR rent in New Orleans is approximately $1,400. Baton Rouge and Shreveport are more affordable at $900-$1,100.
Tax reality
3.0% flat rate effective Jan 1 2025 (Tax Foundation 2025 changes)
Everyday expenses
At a cost of living index of 90, Louisiana is about 10% cheaper than the national average of 100. Louisiana's below-average costs provide reasonable purchasing power despite moderate income tax rates.
Salary reality in Louisiana
Cost of Living in Louisiana — FAQ
Is Louisiana affordable?
Yes. Louisiana has a cost of living index of 90, about 10% below the national average.
What is Louisiana's income tax rate?
Louisiana has a top income tax rate of 6%.