Louisiana requires that all residential property and land be assessed at 10% of the fair market value, by which the tax millage rate is applied. One mill is .001%.
When buying a home in the New Orleans metro area, you must remember that each parish and city operates differently. Many cities have additional taxes on top of the parish tax. Some subdivisions also have additional millages! (A millage is the tax rate used to calculate local property taxes.) Take a look at our quick reference guide while homebuying the New Orleans area:
Cities with additional taxes on top of parish taxes:
- Gretna (incorporated)
- Mandeville (within city limits)
- Covington (within city limits)
- Westwego (within city limits)
*Homestead exemption does not change the amount of these taxes either. This is on top of your parish property taxes – except for Kenner.
Subdivisions with an Extra Millage
- Stonebridge: 20-year millage that began in 2018 to buy their golf course
- Timberlane has an additional city millage
Additional Facts & Tips:
- Belle Chasse has some of the highest homeowner’s insurance in the metro area; however, they have the lowest property taxes.
- Harahan & Orleans parish charge an additional $78 for fire/garbage/police
- Kenner & Harahan, even with the extra taxes, are lower than some other areas
- Most of Kenner is an A or AE flood zone
- Orleans parish pays its taxes in January, while every other parish in the state pays in December. (If buying a home in Orleans, you will need additional funds to reimburse the seller for the paid property taxes.)
- Property taxes increase based on the sales price when a property is sold.
- Some down payment assistance programs require you to carry flood insurance, even in an X flood zone.
- Flood zone X is NOT always the cheapest.
- If you purchase a home in a flood zone that requires you to carry insurance, it’s a federal law that the mortgage servicer escrow the funds.
- If you purchase a home in flood zone X, mortgage services will not escrow your flood insurance since it’s not required.
- Orleans Parish has the highest property taxes in the state; followed by St. Tammany and then St. Bernard.
- Homeowners 65 years of age or older who make a combined total income of less than $100k/year can be exempt from paying property taxes.
- For a $250k property in Louisiana, the average yearly homeowner’s insurance premium is $1813. (as of 2022)
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