Understanding Louisiana Property Taxes & Homestead Exemption
When buying a new home in Louisiana, property taxes are one of the most important ongoing costs to understand. Fortunately, Louisiana offers one of the most valuable tax breaks in the country, the Homestead Exemption, which can significantly reduce your annual property tax bill.
Quick Answer (TL;DR): Louisiana property taxes are calculated using 10% of your home’s market value (called assessed value), multiplied by your local millage rate. The Homestead Exemption reduces your taxable value by $75,000, saving most homeowners $750–$800 per year. You must apply through your parish assessor, and once approved, the exemption renews automatically.
How Louisiana Property Taxes Work: The Basics Every Buyer Needs to Know
Louisiana's property tax system is unique. Unlike most states that tax your home's full market value, Louisiana uses a two-step calculation that results in much lower property taxes than the national average.
Step 1: Understanding Assessed Value vs. Market Value
When the parish tax assessor evaluates your property, they determine both:
Market Value - What your home would sell for on the open market (example: $300,000)
Assessed Value - Only 10% of the market value for residential property (example: $30,000)
This 10% assessment ratio is mandated by Louisiana law and applies to all residential properties statewide. So if you buy a $300,000 Alvarez home, your assessed value for tax purposes is only $30,000.
Step 2: Applying the Millage Rate
Once your assessed value is determined, your parish applies the local millage rate to calculate your annual property taxes.
What is a mill? One mill equals $1 in taxes for every $1,000 of assessed value. If your total millage rate is 100 mills, you pay $100 per $1,000 of assessed value.
The formula: (Assessed Value ÷ 1,000) × Total Millage Rate = Annual Property Tax
Example without homestead exemption:
- Market value: $300,000
- Assessed value: $30,000 (10% of market value)
- Total millage rate: 100 mills
- Annual tax: ($30,000 ÷ 1,000) × 100 = $3,000
Who Sets Millage Rates?
Multiple local entities levy taxes that combine into your total millage rate:
- School districts (typically the largest portion - 40-60 mills)
- Parish government
- Sheriff's office
- Library system (usually 10-11 mills in East Baton Rouge)
- BREC (parks and recreation - around 14 mills)
- Fire districts
- Drainage districts
- City taxes (if you live within city limits)
Your total millage rate varies based on where you live in Louisiana. East Baton Rouge Parish rates typically range from 90-120 mills depending on your specific location and taxing districts.
What Is the Louisiana Homestead Exemption?
Here's where Louisiana homeowners get a major break. The Homestead Exemption exempts the first $75,000 of your home's market value from most property taxes.
How the Exemption Works
What's exempted: The first $75,000 of market value = $7,500 of assessed value
What this means: If your home is worth $300,000, you only pay taxes on $225,000 of that value.
Annual savings: Approximately $750-$800 per year, depending on your millage rate
Example WITH homestead exemption:
- Market value: $300,000
- Homestead exemption: -$75,000
- Taxable market value: $225,000
- Assessed value: $22,500 (10% of $225,000)
- Total millage rate: 100 mills
- Annual tax: ($22,500 ÷ 1,000) × 100 = $2,250
Savings: $750/year compared to not having the exemption
What the Homestead Exemption Does NOT Cover
The exemption applies to state, parish, and special ad valorem taxes, but it does NOT apply to:
✗ City taxes (if you live within Baton Rouge, Baker, or Zachary city limits)
✗ Fire district fees (flat rate fees, not millage-based)
✗ Crime prevention district fees
These taxes and fees still apply regardless of your homestead exemption status.
Who Qualifies for the Louisiana Homestead Exemption?
You must meet these requirements:
- Own the property
- Occupy it as your primary residence
- Be a Louisiana resident
- Apply through your parish assessor
- Only claim exemption on one property
The exemption renews automatically once approved.
How to Apply for the Louisiana Homestead Exemption
You must apply through your parish assessor’s office. It is not automatic.
You'll need:
- Copy of your recorded Act of Sale (property deed)
- Louisiana Driver's License or State ID with your property address
- Proof of residency - Recent utility bill (electric, gas, water, cable, or landline phone) in your name, showing the property address as both service location and mailing address
Step 2: Contact Your Parish Assessor
East Baton Rouge Parish Assessor:
- Main Office: (225) 389-3920
- Website: www.ebrpa.org
- Locations: Main office, Coursey Branch, or Central Branch
Livingston Parish Assessor (for Denham Springs homes):
- Phone: (225) 686-2238
- Website: www.livingstonassessor.com
Ascension Parish Assessor (for Gonzales homes):
- Phone: (225) 473-9334
- Website: Check with local assessor
Step 3: File Your Application
Most Louisiana parishes allow you to:
- Apply in person at the assessor's office
- Mail your completed application with documentation
- Some parishes offer online application options (check your parish website)
Deadline: You must apply by December 31st of the tax year for which you want the exemption. Miss this deadline, and you'll have to wait until the next year.
Step 4: Receive Confirmation
Once approved:
- The exemption applies to your next property tax bill
- You'll receive annual renewal cards to confirm you still qualify
- The exemption renews automatically as long as you continue to own and occupy the property
- You do NOT need to reapply each year unless your ownership changes
Property Tax Rates in Baton Rouge, Zachary, St. George, and Denham Springs
Property taxes vary by parish, school district, and community.
Typical property tax rates in Baton Rouge area
| Area | Typical Annual Tax on $300k Home | Effective Rate |
|---|---|---|
| Baton Rouge | $1,920–$2,700 | 0.64%–0.90% |
| Zachary | $2,100–$2,400 | ~0.70%–0.80% |
| Central | $2,200–$2,500 | ~0.73%–0.83% |
| St. George | $1,950–$2,400 | ~0.65%–0.80% |
| Denham Springs | $2,400–$2,700 | ~0.80%–0.90% |
These estimates include the Homestead Exemption.
Why Property Taxes Vary by Community
Property taxes fund local services such as:
- Public schools
- Police and fire departments
- Libraries
- Parks and recreation
- Infrastructure and drainage
Communities with higher-rated school districts, such as Zachary and Central, often have slightly higher property taxes but stronger home values.
New Construction Property Tax Advantage
New construction homes often have lower property taxes during the first year.
This happens because:
- Only the land is taxed initially
- The completed home is added to tax rolls the following year
This can reduce first-year property taxes for new construction buyers.
Additional Louisiana Property Tax Benefits
Louisiana offers additional exemptions beyond the standard homestead exemption.
Senior Property Tax Freeze (Age 65+)
Eligible seniors can freeze their property tax assessment permanently.
Requirements:
- Age 65 or older
- Income under $100,000
- Homestead Exemption applied
This prevents property taxes from increasing even if home values rise.
Disabled Veteran Property Tax Exemption
Disabled veterans may qualify for additional exemptions.
| Disability Rating | Additional Exemption |
|---|---|
| 50–69% | $25,000 |
| 70–99% | $45,000 |
| 100% | Full property tax exemption |
This can reduce or eliminate property taxes entirely.
First Responder Property Tax Benefit
Qualified first responders may receive an additional exemption.
Eligible professions include:
- Police officers
- Firefighters
- Emergency medical personnel
This provides additional annual tax savings.
FAQ: Louisiana Property Taxes and Homestead Exemption
How much does the Homestead Exemption save in Louisiana?
Most homeowners save approximately $750–$800 per year.
Do I need to apply every year?
No. Once approved, the exemption renews automatically.
When are Louisiana property taxes due?
Property taxes are due by December 31 each year.
Can property taxes increase?
Yes. Property taxes can increase if property values rise, unless you qualify for a senior assessment freeze.
Are property taxes lower on new construction homes?
Yes. New construction homes may have lower taxes during the first year because only land value is taxed initially.
"Can I appeal my property assessment if I think it's too high?"
Yes! Louisiana allows property owners to appeal assessments during the "Open Rolls" period, typically in August-September.
Steps to appeal:
- Review your property details on the assessor's website for errors
- Gather comparable sales data from similar homes in your neighborhood
- Contact the assessor's office for an informal discussion (often resolves issues)
- If unresolved, file a formal appeal with the Board of Review
- Further appeals can be made to the Louisiana Tax Commission
Alvarez tip: New construction homes are assessed based on actual construction costs and comparable sales, so assessments are typically accurate. However, if you believe there's an error, you have the right to appeal.
How Alvarez Construction Helps Homebuyers Understand Property Taxes
Alvarez Construction helps homeowners understand and plan for property taxes by providing:
- Property tax estimates for every home
- Guidance on Homestead Exemption application
- Communities across multiple parishes with varying tax rates
- Access to preferred lenders who calculate tax-inclusive monthly payments
- Connect you with our preferred lender (GMFS Mortgage) who can include property tax estimates in your monthly payment calculations
With over 30 years of experience building homes in Louisiana, Alvarez Construction helps buyers understand long-term ownership costs clearly.
Conclusion: The Louisiana Homestead Exemption Can Save You Thousands
Louisiana property taxes are lower than most states because only 10% of your home’s value is taxed. The Homestead Exemption further reduces your taxable value, saving most homeowners $750–$800 annually.
Applying for the Homestead Exemption is one of the most important steps new homeowners should take to reduce long-term housing costs.
Understanding property taxes, exemptions, and local millage rates ensures you can plan your finances confidently and maximize your savings as a Louisiana homeowner.
Ready to Find Your New Louisiana Home?
Understanding property taxes is just one piece of the homebuying puzzle. At Alvarez Construction, we make the entire process transparent and stress-free.
Explore your options across our 16 Louisiana communities:
- Browse available homes and move-in ready properties
- Compare communities across Zachary, St. George, Baton Rouge, Denham Springs, Central, Madisonville, and Gonzales
- View floor plans from 1,500 to 2,800+ square feet
- Learn about our 5-2-1 Warranty
- Discover $5,000 closing cost assistance through our preferred lender
Get Expert Guidance on Louisiana Property Taxes
Have questions about property taxes, homestead exemption, or finding the right Louisiana community for your budget?
Contact Alvarez Construction today:
- Call: (225) 240-4662
- Visit: Contact Us
- Learn more: Path to Ownership
- Read our blog: The Latest from Alvarez Construction
At Alvarez Construction, we've been helping Louisiana families build their dreams for over 30 years. Let us help you find the perfect home in the right community—with full transparency about property taxes, homestead exemption benefits, and long-term homeownership costs.
Don't forget to apply for your homestead exemption by December 31st—it's FREE money that could save you $750+ every single year!
