Louisiana has posted the largest gain of any state in the Tax Foundation’s 2027 State Tax Competitiveness Index. Louisiana Revenue Secretary Jarrod Coniglio says the state has moved up nine spots to 23rd overall.
“We’re always comparing ourselves to other states, but we’re ahead of Alabama, who is 35; Arkansas is 32; Mississippi, 27; Even Georgia, at 24,” Coniglio noted.
No other state gained as many places. Louisiana now stands 17 places higher than it did in 2024.
Coniglio says the improvement is the result of the tax reform package approved in 2024. One of the major changes that went into effect in 2025 was a flat 3% income tax rate. The secretary says the Tax Foundation ranks Louisiana’s individual income tax rate as the ninth most competitive in the nation.
“We’ve had over a billion dollars of income taxes that would normally have been earned, back in the wallets of our taxpayers in Louisiana,” Coniglio said.
State lawmakers can approve more tax reform measures in the 2027 legislative session. Coniglio says the governor would like to eliminate state income taxes.
“Governor Landy is on board with trying to eliminate the income tax. Do we do it this session? Probably not, I don’t know; but I know that is a goal,” Coniglio stated.
The Tax Foundation says Louisiana has also seen a 17-place improvement in its property tax rank due to the elimination of the state’s capital stock tax. They call it a damaging tax that taxes businesses regardless of profit.