North Louisiana has consistently been named as the most cost effective region to do business. A combination of low utility rates, transportation costs, labor costs and a business friendly tax structure makes North Louisiana a sustainable solution to help your business succeed nationally and globally.
North Louisiana: No. 1 Lowest Cost of Doing Business in the Nation
Forbes named North Louisiana the most cost competitive place to do business in the United States. Business Facilities magazine named North Louisiana No. 3 among Low Cost Manufacturing Centers. KPMG Competitive Alternatives recognized the region as the No.1 most cost competitive area in the United States from 2008 to 2016. These rankings all point to the fact that North Louisiana offers a competitive cost structure.
A COMBINATION OF FACTORS PROVIDE A LOW COST OF DOING BUSINESS IN LOUISIANA:
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The state effectively provides a zero corporate income tax environment for items produced in Louisiana and shipped out of state (single sales tax apportionment).
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Louisiana has a low percentage of unionized workers (3.9 percent for private unionization reported by unionstats.com, 2019), and the ratio of worker skill-to-pay favors businesses.
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Louisiana businesses have access to a competitive, comprehensive portfolio of state, local and federal incentives that can make a profound impact on a company’s bottom line.
Tax Structure: Cost of Doing Business
Lowest Business Cost in the Nation
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State Corporate Income Tax |
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4% on the first $25,000 of net income
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5% on the next $25,000
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6% on the next $50,000
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7% on the next $100,000, and
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8% on net income over $200,000
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Louisiana uses single sales factor
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State Corporate Franchise Tax |
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$1.50 per $1,000 or major fraction thereof up to $300,000
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$3.00 per $1,000 or major fraction thereof in excess of $300,000
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Unemployment Insurance Tax |
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Standard rate range is .10% - 6.2%
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Rate for new employers is the average rate for the particular industry
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Maximum unemployment weekly benefit is 1/2 of the claimant's previous wage earnings for 26 weeks
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Sales/Use Tax |
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4.45% state sales/use tax. Local sales/use tax averages about 4% and applies to same retail sales as the state tax.
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Local sales tax rates can be found here. Choose the parish for parish and local sales tax.
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Property Taxes |
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No state property tax. Local taxes are levied annually by local and parish (county) authorities via millages.
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Parishwide millage rates for individual parishes can be found here. Download the most recent annual report and refer to the page on Parishwide Millage.
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Taxes are calculated by multiplying applicable millage rates x assessed value of property.
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Capital assets are assessed at 15% of fair market value
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Land is assessed at 10% of fair market value
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Manufacturers may be eligible for a ten year abatement of a portion of the property taxes on industrial equipment and machinery via the Industrial Tax Exemption Program (ITEP) - 80% for an initial term of five years and the option to renew for five additional years at 80%.
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Labor Costs
As a right-to-work state, Louisiana offers affordable labor costs with high productivity and retention rates. The following table shows salaries for various occupations in North Louisiana.
AVERAGE HOURLY WAGES FOR SELECTED OCCUPATIONS FOR THE REGION
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Title |
Mean |
Entry Level
10th Percentile |
Experienced
75th Percentile |
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Professional |
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|
|
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Accountants and Auditors |
$30.56 |
$18.36 |
$35.73 |
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Administrative Services Managers |
$42.19 |
$21.64 |
$52.06 |
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Budget Analysts |
$29.53 |
$13.89 |
$37.48 |
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Computer Programmers |
$32.96 |
$18.37 |
$39.08 |
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Electrical Engineers |
$38.13 |
$21.31 |
$47.76 |
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Financial Analysts |
$41.68 |
$15.64 |
$47.26 |
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Gaming Supervisors |
$19.58 |
$10.31 |
$24.14 |
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Pharmacists |
$59.42 |
$39.07 |
$68.04 |
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Registered Nurses |
$30.74 |
$21.35 |
$35.55 |
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Retail |
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|
|
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Retail Salespersons |
$12.96 |
$8.04 |
$13.37 |
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Stock Clerks and Order Fillers |
$11.27 |
$8.16 |
$12.60 |
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Clerical |
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|
|
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Computer Operators |
$17.89 |
$10.62 |
$22.56 |
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Customer Service Representatives |
$16.08 |
$9.67 |
$19.06 |
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Data Entry Keyers |
$13.53 |
$8.11 |
$16.36 |
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Executive Secretaries and Executive Administrative Assistants |
$16.12 |
$10.04 |
$18.86 |
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File Clerks |
$12.08 |
$8.86 |
$13.25 |
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Office Clerks, General |
$12.14 |
$8.27 |
$13.91 |
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Payroll and Timekeeping Clerks |
$18.07 |
$10.54 |
$21.90 |
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Receptionists and Information Clerks |
$12.61 |
$8.67 |
$14.53 |
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Switchboard Operators, Including Answering Service |
$14.06 |
$8.75 |
$16.19 |
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Unskilled |
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|
|
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Construction Laborers |
$15.95 |
$8.75 |
$17.13 |
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Couriers and Messengers |
$12.36 |
$7.69 |
$12.84 |
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Packers and Packagers, Hand |
$13.72 |
$9.22 |
$16.12 |
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Semi-Skilled |
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|
|
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Cashiers |
$9.41 |
$7.79 |
$10.06 |
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Security Guards |
$13.93 |
$9.07 |
$15.92 |
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Sheet Metal Workers |
$21.95 |
$13.44 |
$27.50 |
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Skilled |
|
|
|
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Architectural and Civil Drafters |
$26.79 |
$15.50 |
$31.36 |
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Crane and Tower Operators |
$19.94 |
$9.17 |
$23.98 |
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Maintenance Workers, Machinery |
$25.72 |
$16.02 |
$31.28 |
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Machinists |
$22.59 |
$14.30 |
$27.44 |
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Welders, Cutters, Solderers, and Brazers |
$21.43 |
$13.46 |
$24.66 |
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Technical |
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|
|
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Automotive Service Technicians and Mechanics |
$11.08 |
$8.31 |
$12.36 |
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Medical and Clinical Laboratory Technicians |
$20.31 |
$10.94 |
$25.33 |
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Pharmacy Technicians |
$16.48 |
$11.39 |
$18.17 |
Source: EMSI, Q2 2020 - QCEW Employees, Non-QCEW Employees, and Self-Employed