Property Management Taxes In Louisiana

This guide covers the taxes that actually apply to a property management company operating in Louisiana, and to the rental income it handles on behalf of owners. Every figure below is tied to the statute, agency rule, or published guidance that sets it, so you can confirm a rate or deadline before acting on it.

State Income Tax On Rental And Management Income

Louisiana moved to a flat individual income tax rate of 3% for taxable periods beginning on or after January 1, 2025, enacted by Act 11 of the 2024 Third Extraordinary Session. The prior graduated brackets were repealed. Corporations also moved to a flat rate of 5.5%, and the separate corporation franchise tax has been repealed for periods beginning on or after January 1, 2026. Partnerships with nonresident partners must file a composite return covering those partners.

• For taxable periods beginning on or after January 1, 2025, the Louisiana individual income tax rate is a flat 3%. The graduated brackets and rates were repealed. (Louisiana Department of Revenue, income tax reform FAQ)
• The flat 3% rate applies to all filing statuses, including single, married filing separately, head of household, married filing jointly, and qualified surviving spouse. (Louisiana Department of Revenue, income tax reform FAQ)
• The flat 3% individual income tax rate was enacted by Act 11 of the 2024 Third Extraordinary Session, originally House Bill 10. (Act No. 11, 2024 Third Extraordinary Session (HB 10))
• For taxable periods beginning on or after January 1, 2025, the Louisiana corporation income tax rate is a flat 5.5%. The graduated corporate brackets and rates were repealed. (Louisiana Department of Revenue, corporation income tax rate FAQ)
• The Louisiana corporation franchise tax is repealed for franchise tax periods beginning on or after January 1, 2026, although corporations may still have filing obligations for earlier franchise tax periods. (Louisiana Department of Revenue, Corporation Income and Franchise Taxes)

Sales Tax On Rent: What Applies And What Does Not

Long term residential rent is not subject to Louisiana state sales tax. The Louisiana sales tax on leases and rentals reaches tangible personal property and digital products, not leases of immovable property such as a house or an apartment. Short term lodging is taxed: the state charges 5% sales tax on the furnishing of sleeping rooms, and the Department of Revenue expressly says that taxable service includes accommodations sold to transient guests by property management companies and accommodation intermediaries. Louisiana sales tax is also heavily parish administered, so local sales tax and local occupancy tax sit on top of the state rate and are set and often collected locally.

• The Louisiana state sales tax rate is 5% for periods beginning on or after January 1, 2025, increased from 4.45%, and that rate is in effect until December 31, 2029. (Louisiana Department of Revenue, sales tax reform FAQ)
• Louisiana sales and use tax on leases and rentals is levied on the lease or rental of tangible personal property and digital products. The statute defines lease or rental as the leasing or renting of tangible personal property or digital products without transfer of title, which does not reach leases of immovable property such as a house or apartment. (La. R.S. 47:302)
• The state sales tax rate on sleeping rooms, hotel rooms, motel rooms, and similar accommodations is 5%, with a 3% state rate for properties with 10 or more rooms in Orleans and Jefferson Parishes. These rates run until December 31, 2029. (Louisiana Department of Revenue, sales tax reform FAQ on sleeping rooms)
• The taxable service of furnishing of sleeping rooms includes accommodations sold to transient guests by hotels, apartment hotels, lodging houses, tourist camps and courts, property management companies, and accommodation intermediaries, which sweeps in short term rentals booked through platforms. (Louisiana Department of Revenue, sales tax reform FAQ on sleeping rooms and online travel companies)
• For short term lodging the taxable sales price includes service, facilitator, processing, delivery, and other similar fees and charges associated with the transaction, even if those fees are separately stated. (Louisiana Department of Revenue, sales tax reform FAQ on sleeping rooms and online travel companies)
• Many local taxing authorities in Louisiana impose their own sales tax and occupancy tax on the furnishing or occupancy of sleeping rooms in addition to the state tax, and the Department of Revenue collects certain hotel and motel occupancy taxes on behalf of specified taxing authorities. (Louisiana Department of Revenue, sales tax reform FAQ on sleeping rooms)

Property Tax

Louisiana ad valorem property tax is parish level. Each parish assessor determines fair market value for property in the parish, except public service properties, which the Louisiana Tax Commission values. Assessment percentages are set by the state constitution: land and improvements for residential purposes are assessed at 10% of fair market value, other property at 15%. The homestead exemption requires the owner to occupy the residence, so it never applies to tenant occupied rental property.

• Each assessor determines the fair market value of all property subject to taxation within his respective parish or district, except public service properties, which are valued by the Louisiana Tax Commission or its successor. (Louisiana Constitution Article VII, Section 18)
• Assessment percentages of fair market value are: land 10%, improvements for residential purposes 10%, electric cooperative properties excluding land 15%, public service properties excluding land 25%, and other property 15%. (Louisiana Constitution Article VII, Section 18)
• All property subject to taxation must be reappraised and valued at intervals of not more than four years. (Louisiana Constitution Article VII, Section 18)
• The homestead exemption applies to a bona fide homestead consisting of a residence owned and occupied by the person claiming it, and exempts up to $7,500 of assessed valuation from state, parish, and special ad valorem taxes. Because occupancy by the owner is required, the exemption does not apply to tenant occupied rental property. (Louisiana Constitution, Homestead Exemption provisions)
• Owners of homesteads may claim and keep the exemption by filing an annual affidavit of intent to return and reoccupy the homestead with the parish assessor before December 31 of the year in which the exemption is claimed. (Louisiana Constitution, Homestead Exemption provisions)

Withholding And Employer Taxes

Louisiana employers withhold state income tax and file Form L-1 quarterly with the Department of Revenue, then reconcile on Form L-3 in January. Unemployment tax is separate and runs through the Louisiana Workforce Commission on a $7,700 taxable wage base. Managers that operate through partnerships with out of state owners also face the composite partnership return requirement.

• Form L-1 is the quarterly Louisiana withholding return. Quarterly and monthly payers file by April 30, July 31, October 31, and January 31. Semi-monthly payers file by the 15th of the month following the close of the quarter. (Louisiana Department of Revenue, withholding tax FAQ, When must I file Form L-1)
• A quarterly Form L-1 must be filed even if no taxes were withheld during the quarter, reported with zero amounts. (Louisiana Department of Revenue, withholding tax FAQ, When must I file Form L-1)
• Form L-3, the Employer's Annual Reconciliation of Louisiana Income Tax Withheld, is due on or before January 31, or on or before the 30th day after the date on which the final payment of wages was made. (Louisiana Department of Revenue filing calendar, Form L-3)
• The Louisiana unemployment insurance taxable wage base is $7,700 for 2025. (State of Louisiana 2025 Unemployment Insurance Contribution Rate Table)
• Unemployment taxes and quarterly wage reports are due no later than the last day of the month immediately following the end of each quarter, meaning April 30, July 31, October 31, and January 31. Penalties for late, inaccurate, or incomplete quarterly wage and tax reports start at 5% of the total amount due for the quarter or $25, whichever is greater, and cannot exceed 25% of the amount due or $125, whichever is greater. (Louisiana Workforce Commission, Unemployment Insurance Employer Tax Guidelines (R.S. 23:1543(A)))
• Employers reporting 100 or more employees must file wage reports online, and all employers must file electronically for reports filed after January 31, 2014. (Louisiana Workforce Commission, Unemployment Insurance Tax Guide for Employers)

Federal Obligations

Federal treatment is the same in Louisiana as everywhere else. Owners report rental real estate on Schedule E of Form 1040, the building depreciates over 27.5 years, land does not depreciate, and property managers issuing payments to vendors or remitting rents to owners have 1099 duties whose dollar threshold changes for 2026.

• Individuals report rental real estate income and expenses on Schedule E (Form 1040), Supplemental Income and Loss. Form 4562 may also be required to report depreciation. (IRS Publication 527, Residential Rental Property)
• Residential rental property is depreciated over a 27.5 year recovery period under the MACRS General Depreciation System using the mid-month convention. (IRS Publication 527, Residential Rental Property)
• Land cannot be depreciated, so the purchase price must be allocated between land and building using fair market values or assessed values. (IRS Publication 527, Residential Rental Property)
• Appliances and carpets are 5 year property under the General Depreciation System, using the 200% declining balance method and the half-year convention unless the mid-quarter convention applies. (IRS Publication 527, Residential Rental Property)
• The information return reporting threshold was $600 for payments made during 2025. Under the One, Big, Beautiful Bill Act the threshold rises to $2,000 in a calendar year for payments made after December 31, 2025, with inflation adjustment for calendar years after 2026. The change applies to nonemployee compensation on Form 1099-NEC and to rents and other income payments on Form 1099-MISC. (Instructions for Forms 1099-MISC and 1099-NEC)

Filing Deadlines

Louisiana income tax returns are due May 15, which is a month later than the federal deadline and a common source of confusion. Sales tax returns are due on the 20th, payroll withholding is quarterly, and unemployment reports follow the last day of the month after each quarter.

• Louisiana individual income tax returns are due by May 15 for calendar year filers. Fiscal year returns are due on the 15th day of the 5th month after the close of the fiscal year. (Louisiana Department of Revenue, individual income tax FAQ)
• The Louisiana sales tax return, Form R-1029, is due on or before the 20th day of the month following the close of the calendar month or quarter reporting period. Interest and penalties are assessed on delinquent returns and payments. (Louisiana Department of Revenue, sales tax FAQ)
• Quarterly withholding returns on Form L-1 are due April 30, July 31, October 31, and January 31 for quarterly and monthly payers, and by the 15th of the month following the quarter close for semi-monthly payers. (Louisiana Department of Revenue, withholding tax FAQ)
• Form L-3, the annual withholding reconciliation, is due on or before January 31. (Louisiana Department of Revenue filing calendar, Form L-3)
• Unemployment insurance quarterly wage and tax reports and payments are due no later than the last day of the month following the end of each quarter. (Louisiana Workforce Commission, Unemployment Insurance Employer Tax Guidelines (R.S. 23:1543(A)))

Registration And Recordkeeping

A management company operating in Louisiana registers with the Department of Revenue for a Louisiana Revenue Account Number covering sales and use tax and withholding, and separately with the Louisiana Workforce Commission for unemployment tax. Because so much Louisiana sales tax is parish administered, a company handling short term rentals should also expect local registration and local returns beyond the state filing.

• Businesses register with the Louisiana Department of Revenue to obtain a Louisiana Revenue Account Number. Form R-16019, Application for Louisiana Revenue Account Number, is used when online registration is unavailable and is mailed to the Louisiana Department of Revenue, PO Box 201, Baton Rouge, LA 70821-0201. (Louisiana Department of Revenue, Starting or Buying a Business)
• Many local taxing authorities in Louisiana levy their own sales tax and occupancy tax on sleeping room rentals separately from the state tax, so an operator of short term rentals faces local registration and reporting in addition to the state return. (Louisiana Department of Revenue, sales tax reform FAQ on sleeping rooms)
• Employers must register with the Louisiana Workforce Commission for unemployment insurance and file quarterly wage and tax reports electronically. (Louisiana Workforce Commission, Unemployment Insurance Tax Guide for Employers)
• La. R.S. 47:201.1(F)(4) requires electronic filing of all composite partnership returns. (La. R.S. 47:201.1(F)(4))

Recent Changes Worth Tracking

• Effective Taxable periods beginning on or after January 1, 2025: Louisiana replaced graduated individual income tax brackets with a flat 3% rate under Act 11 of the 2024 Third Extraordinary Session. (Act No. 11, 2024 Third Extraordinary Session (HB 10))
• Effective Taxable periods beginning on or after January 1, 2025: The corporation income tax became a flat 5.5% and the graduated corporate brackets were repealed. (Louisiana Department of Revenue, corporation income tax rate FAQ)
• Effective Periods beginning on or after January 1, 2025: The state sales tax rate increased from 4.45% to 5%, scheduled to remain in effect until December 31, 2029. (Louisiana Department of Revenue, sales tax reform FAQ)
• Effective Franchise tax periods beginning on or after January 1, 2026: The Louisiana corporation franchise tax is repealed, although filing obligations remain for earlier franchise tax periods. (Louisiana Department of Revenue, Corporation Income and Franchise Taxes)

Tax is one half of Louisiana compliance. See our guide to Louisiana property management laws and regulations for licensing, trust account, and disclosure rules.

Keeping This Straight

Tax rates and thresholds move more often than most operators expect, and the figures circulating in older articles go stale quickly. Check any rate against its citation before you quote it to an owner, and re-check them at the start of each tax year.

This guide is a starting point for professional managers, not tax or legal advice. For a specific filing, work with a CPA familiar with Louisiana rental property, and confirm current figures with the Louisiana Department of Revenue or the IRS.

Sources

Every fact above is drawn from one of the official sources below.

• Louisiana Department of Revenue, income tax reform FAQ, Louisiana Department of Revenue
• Act No. 11, 2024 Third Extraordinary Session (HB 10), Louisiana State Legislature, Act 11 of the 2024 Third Extraordinary Session
• Louisiana Department of Revenue, corporation income tax rate FAQ, Louisiana Department of Revenue
• Louisiana Department of Revenue, Corporation Income and Franchise Taxes, Louisiana Department of Revenue
• Louisiana Department of Revenue, sales tax reform FAQ, Louisiana Department of Revenue
• La. R.S. 47:302, Louisiana State Legislature, La. R.S. 47:302
• Louisiana Department of Revenue, sales tax reform FAQ on sleeping rooms, Louisiana Department of Revenue
• Louisiana Department of Revenue, sales tax reform FAQ on sleeping rooms and online travel companies, Louisiana Department of Revenue
• Louisiana Constitution Article VII, Section 18, Louisiana State Legislature, Louisiana Constitution Article VII Section 18
• Louisiana Constitution, Homestead Exemption provisions, Louisiana State Legislature, Homestead Exemption
• Louisiana Department of Revenue, withholding tax FAQ, When must I file Form L-1, Louisiana Department of Revenue
• Louisiana Department of Revenue filing calendar, Form L-3, Louisiana Department of Revenue
• State of Louisiana 2025 Unemployment Insurance Contribution Rate Table, Louisiana Workforce Commission
• Louisiana Workforce Commission, Unemployment Insurance Employer Tax Guidelines (R.S. 23:1543(A)), Louisiana Workforce Commission
• IRS Publication 527, Residential Rental Property, Internal Revenue Service, Publication 527
• Instructions for Forms 1099-MISC and 1099-NEC, Internal Revenue Service, Instructions for Forms 1099-MISC and 1099-NEC
• Louisiana Department of Revenue, individual income tax FAQ, Louisiana Department of Revenue
• Louisiana Department of Revenue, sales tax FAQ, Louisiana Department of Revenue
• Louisiana Department of Revenue, Starting or Buying a Business, Louisiana Department of Revenue
• La. R.S. 47:201.1(F)(4), Louisiana State Legislature, R.S. 47:201.1, Composite returns for nonresident partners or members