Louisiana Mortgage Calculator
Louisiana assesses homes at 10% of value, then exempts the first $75,000 of that value entirely for most owner-occupants — pick your parish below to see your real payment.
Loan & Property Details
Auto-fills from the parish selected above; one mill = $1 per $1,000 of assessed value. Edit if you know your exact ward’s combined rate.
Your Estimated Monthly Payment
Choose a parish and enter your details to see a plain-language read on your payment.
What If You Paid Extra Toward Principal?
Slide to test an extra monthly payment and see how many years and how much interest it saves.
What If Your Rate Changes?
Your 5-Year Equity Snapshot
Good to Know: Louisiana Charges No Real Estate Transfer Tax
This is one closing cost you genuinely won’t see in Louisiana, buyer or seller.
| State real estate transfer tax | None |
| Parish or municipal transfer tax | None |
| What you’ll still see on the settlement statement | Standard title insurance, recording, and notary fees |
| Comparable cost in a state with a transfer tax | Often 0.1%–4%+ of sale price elsewhere in this calculator series |
Why Louisiana Property Tax Math Looks Nothing Like a National Calculator
Louisiana is one of only two states that uses parishes instead of counties, a distinction rooted in its Catholic, French, and Spanish colonial history, and all 64 of them run their own property tax system on top of two structural features that make Louisiana’s real bill dramatically lower than a naive calculation would suggest. First, residential property is assessed at just 10% of fair market value, a ratio locked into the state constitution. Second, and more dramatically, the state’s Homestead Exemption then excludes the first $75,000 of market value, $7,500 of assessed value, from most parish-level taxation entirely. Stack those together and a huge share of Louisiana homeowners pay little to nothing in parish property tax on their primary residence.
Orleans, Jefferson, East Baton Rouge, and Caddo: how the four biggest parishes compare
Orleans Parish, coterminous with the city of New Orleans, runs the highest combined millage rate among Louisiana’s major parishes, reflecting a dense urban tax base funding a full slate of city services. Jefferson Parish, New Orleans’s largest suburb, runs a notably lower combined rate. East Baton Rouge Parish, home to the state capital, sits in a comparable range to Jefferson. Caddo Parish, home to Shreveport in the state’s northwest corner, runs one of the higher combined rates of the four despite considerably lower home values. Switching parishes above resets both price and millage defaults to match.
| Home fair market value | $290,000 |
| Louisiana residential assessment ratio | 10% |
| Assessed value | $29,000 |
| Homestead Exemption | – $7,500 |
| Taxable assessed value | $21,500 |
| Orleans Parish combined millage | 112 mills |
| Estimated annual tax | $21,500 ÷ 1,000 × 112 ≈ $2,408 |
Without the homestead exemption, that same home would owe roughly $3,248 a year, about 35% more. On a more modestly priced home, the gap is proportionally even larger, since the $7,500 exemption stays flat while the assessed value shrinks with price.
Homes worth $750,000 or less can owe zero parish tax
Because the exemption removes the first $75,000 of market value and assessment runs at 10%, any home valued at $75,000 or less has its entire assessed value wiped out for parish tax purposes. In practice, a meaningful share of homes in Louisiana’s rural and small-town parishes fall under or near that threshold, which is why “I don’t pay parish property tax” is a genuinely common statement here, not an exaggeration. It’s worth noting the exemption typically doesn’t reach every line on your bill: municipal general fund taxes in incorporated cities, and special assessments like drainage, levee, or improvement districts, are often not covered, so your actual bill can include some tax even on an otherwise fully exempt home.
The Special Assessment Level freeze for seniors
Louisiana’s Special Assessment Level program lets homeowners 65 and older, with household income under a limit set by Amendment 6 of 2020 (currently around $100,000, adjusted for inflation), permanently freeze their home’s assessed value at the level in place when they qualify. Unlike the homestead exemption’s flat dollar reduction, this doesn’t lower the current bill by itself; it protects against future increases as the parish reassesses, which compounds into real savings the longer a qualifying owner stays in the home. It requires an application through the parish assessor and isn’t automatic.
The real reason Louisiana’s total housing cost surprises buyers: insurance, not tax
With property tax this low, homeowners insurance is often the line item that actually dominates a Louisiana buyer’s monthly payment, especially in and around New Orleans. Years of hurricane losses have pushed several major insurers to pull back from the Louisiana market, leaving Louisiana Citizens Property Insurance Corporation, the state’s insurer of last resort, covering a growing share of homes, often at a higher cost than a standard private policy. Flood insurance, frequently required separately from homeowners insurance in much of the state given FEMA flood zone designations, adds another real cost on top. Budget insurance carefully here; it’s very often the number that moves your total payment more than the tax line does.
Common Mistakes Louisiana Buyers Make With the Numbers
- Applying the millage rate to full market value. Louisiana’s 10% assessment ratio and $75,000 homestead exemption together shrink the real taxable base dramatically.
- Forgetting to file the Homestead Exemption. It’s not automatic on a new purchase and must be filed with the parish assessor.
- Assuming the homestead exemption covers every tax on the bill. Municipal taxes and special district assessments are often not exempt.
- Underestimating insurance, especially near New Orleans. It’s frequently the largest recurring housing cost in the state, larger than property tax for many buyers.
- Assuming the Special Assessment Level lowers this year’s bill. It freezes future increases; it isn’t an immediate discount.
Tips for Lowering Your Louisiana Mortgage Payment
- File the Homestead Exemption with your parish assessor immediately after closing; it’s the single largest, most universal property tax benefit in the state.
- If a borrower on title is 65 or older and income-qualifies, apply for the Special Assessment Level freeze as soon as you’re eligible.
- Get real homeowners and, if applicable, flood insurance quotes before waiving your inspection period; Louisiana’s insurance market has tightened significantly in recent years.
- Compare combined millage rates across parish lines, not just home prices, especially around the New Orleans metro.
- Use the extra-payment scenario above; even a modest additional principal payment compounds meaningfully over a 30-year Louisiana loan.
Frequently Asked Questions
Why does Louisiana use parishes instead of counties?
Louisiana’s parish system dates to its French and Spanish colonial and Catholic diocesan history. All 64 parishes function as the equivalent of counties for property tax and other government purposes.
How is property tax calculated in Louisiana?
Homes are assessed at 10% of fair market value, the $75,000 Homestead Exemption ($7,500 of assessed value) is subtracted for owner-occupied primary residences, and the parish’s combined millage rate is applied to what remains.
What is Louisiana’s Homestead Exemption?
A constitutional exemption excluding the first $75,000 of a primary residence’s market value from most parish property tax. It must be filed with the parish assessor and isn’t automatic.
Do Louisiana homeowners ever pay zero property tax?
Yes, many homeowners in lower-value rural and small-town parishes pay little to no parish property tax because the Homestead Exemption covers their entire assessed value, though municipal and special district taxes may still apply.
What is Louisiana’s Special Assessment Level?
A program letting income-qualified homeowners 65 and older permanently freeze their home’s assessed value, protecting against future increases as the parish reassesses.
Does Louisiana have a real estate transfer tax?
No, Louisiana charges no state or parish real estate transfer tax.
Why is homeowners insurance so expensive in Louisiana?
Years of hurricane losses have led several major insurers to pull back from the state, pushing more homeowners onto Louisiana Citizens Property Insurance Corporation, the state’s insurer of last resort, often at a higher cost.
Which Louisiana parish has the lowest property tax rate?
Among the state’s larger parishes, Jefferson generally runs a lower combined millage rate than Orleans, East Baton Rouge, or Caddo, though many smaller rural parishes run lower rates statewide.
What down payment do I need to buy a home in Louisiana?
Conventional loans often start around 5% down, FHA loans typically require 3.5%, and VA loans can allow 0% down for eligible veterans.
Does this calculator include closing costs?
No, this tool estimates the ongoing monthly payment only. Louisiana closing costs typically add a modest percentage of the purchase price, without any transfer tax added.
References
- Louisiana Tax Commission, assessment ratio, Homestead Exemption, and Special Assessment Level guidance – latax.state.la.us
- Orleans, Jefferson, East Baton Rouge, and Caddo Parish Assessor offices, current combined millage rates – parish government sites
- Louisiana Constitution, Article VII, Section 20 (Homestead Exemption); Amendment 6 (2020, Special Assessment Level income limit)
- Freddie Mac Primary Mortgage Market Survey, weekly national rate averages – freddiemac.com/pmms
Related DexoCalc Tools
This Louisiana mortgage calculator is part of the Mortgage Calculators cluster I am building out on DexoCalc. Start with the national Mortgage Calculator to compare Louisiana against any other state, see another 10%-assessment-ratio state in the Alabama Mortgage Calculator, compare a similar large flat-dollar exemption out west in the Arizona Mortgage Calculator, or check a state at the opposite tax extreme in the New Jersey Mortgage Calculator. Browse every state-specific tool as new ones publish on the full Mortgage Calculators hub.
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed Louisiana mortgage professional or insurance agent. Property tax, exemption, and insurance figures are approximations that vary by parish, ward, and individual circumstances; confirm exact figures with your parish assessor and an insurance agent. Sources: Louisiana Tax Commission, parish assessor offices, Freddie Mac.