Property Taxes
Property taxes are annual taxes levied by local government authorities based on the assessed value of your property. They fund essential public services such as schools, roads, fire protection, and infrastructure.
In Louisiana, property taxes are assessed at the parish level and calculated using the local millage rate applied to your assessed value. Most mortgage lenders collect property taxes monthly through escrow and pay them on your behalf when they come due.
Property taxes are not fixed for the life of your loan. They can increase or decrease based on reassessments, changes in millage rates, or loss of exemptions. These changes directly affect your monthly escrow payment.
Why This Matters: Property taxes are a significant part of your total housing cost. Understanding how they are calculated in your parish — and filing for available exemptions like the Homestead Exemption — can meaningfully reduce your monthly payment. Learn more about the Louisiana homestead exemption.
Common question
How are property taxes calculated in Louisiana?
Your parish assessor sets the assessed value; local millage rates are applied to calculate the annual tax. The Homestead Exemption can exempt the first $75,000 of value for primary residences.
Are property taxes included in my mortgage payment?
Often yes. Lenders typically collect property taxes monthly in escrow and pay them when due. Changes in tax amount will affect your monthly payment at the next escrow analysis.
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