Understanding Louisiana Property Taxes
Clear, practical answers about how property taxes work in Louisiana — and how they affect your mortgage.
How Louisiana Property Taxes Are Calculated
Louisiana property taxes are calculated using two numbers: your property's assessed value and your area's millage rate. Understanding both helps you anticipate your tax bill — and your monthly escrow payment.
Assessed Value × Millage Rate = Annual Property Tax
Assessed Value
In Louisiana, residential properties are assessed at 10% of their fair market value. So if your home is worth $300,000, your assessed value is $30,000 — not $300,000.
Your parish assessor determines fair market value. This is separate from your home's appraised value for mortgage purposes, though the two often track closely over time.
Millage Rate
A millage rate is the tax rate expressed per $1,000 of assessed value. One mill equals $1 per $1,000. Millage rates vary by parish and can include levies for schools, roads, fire districts, and other local services.
Example: If your assessed value is $30,000 and your total millage rate is 100 mills, your annual tax bill would be $3,000.
How Homestead Exemption Reduces Your Tax
Louisiana's Homestead Exemption reduces your taxable assessed value by up to $7,500 for your primary residence. Using the same example above:
- Assessed value: $30,000
- Minus Homestead Exemption: − $7,500
- Taxable assessed value: $22,500
- At 100 mills: $2,250/year (saving $750 annually)
The exemption is free to file and renews automatically — but you must file it in person at your parish assessor's office within the first year of ownership.
How Property Taxes Affect Your Mortgage Payment
Most mortgage lenders collect property taxes as part of your monthly payment through an escrow account. The lender estimates your annual tax bill, divides it by 12, and adds that amount to your monthly principal and interest payment.
If your Homestead Exemption is applied after you close, your lender may adjust your escrow payment at the next annual review. This is one reason I recommend filing your exemption as early as possible — it can lower your monthly escrow requirement and put money back in your pocket.
Common Questions
Is my assessed value the same as my appraised value?
No. Your appraised value is determined by a licensed appraiser for mortgage purposes and reflects current market value. Your assessed value is set by the parish assessor and is typically 10% of market value for residential properties. They are separate calculations used for different purposes.
Can my property taxes change after I close?
Yes. Property taxes can change if your assessed value is updated during a reassessment cycle, if local millage rates are adjusted, or if you gain or lose an exemption. Your lender will adjust your escrow payment accordingly at the next annual review.
What if I disagree with my assessed value?
You have the right to appeal your assessed value through your parish assessor's office. The appeal process and deadlines vary by parish. Contact your local assessor directly for the specific process in your area.
Do investment properties qualify for Homestead Exemption?
No. Homestead Exemption applies only to your primary residence — the home you live in. Investment properties, vacation homes, and rental properties do not qualify.
Have questions about how property taxes affect your specific loan or escrow account?
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