Cost of Doing Business

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:

  • The state effectively provides a zero corporate income tax environment for items produced in Louisiana and shipped out of state (single sales tax apportionment).
  • Louisiana has a low percentage of unionized workers (2.0 - 2.3 percent reported by unionstats.com, 2016), and the ratio of worker skill-to-pay favors businesses.
  • 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

State Corporate Income Tax
  • 4% on the first $25,000 of net income
  • 5% on the next $25,000
  • 6% on the next $50,000
  • 7% on the next $100,000, and
  • 8% on net income over $200,000
  • Louisiana uses single sales factor
State Corporate Franchise Tax
  • $1.50 per $1,000 or major fraction thereof up to $300,000
  • $3.00 per $1,000 or major fraction thereof in excess of $300,000
Unemployment Insurance Tax
  • Standard rate range is .10% - 6.2%
  • Rate for new employers is the average rate for the particular industry
  • Maximum unemployment weekly benefit is 1/2 of the claimant's previous wage earnings for 26 weeks
Sales/Use Tax
  • 5% state sales/use tax. Local sales/use tax averages about 4% and applies to same retail sales as the state tax. 
  • Local sales tax rates can be found here. Choose the parish for parish and local sales tax.
Property Taxes 
  • No state property tax. Local taxes are levied annually by local and parish (county) authorities via millages. 
  • Parishwide millage rates for individual parishes can be found here. (refer to page 43)
  • Taxes are calculated by multiplying millage rate x assessed value of property.
  • Capital assets are assessed at 15% of fair market value 
  • Land is assessed at 10% of fair market value
  • Industrial property and equipment can receive a ten year abatement via the Industrial Tax Exemption Program (ITEP)

 

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

 
Title Mean Entry Level Experienced
 Professional      
 Accountants and Auditors $30.72 $20.12 $36.02
 Administrative Services Managers $31.76 $19.79 $37.74
 Budget Analysts $31.18 $23.01 $35.27
 Computer Programmers $28.79 $19.04 $33.66
 Electrical Engineers $47.34 $29.41 $56.30
 Financial Analysts $35.88 $20.46 $43.60
 Gaming Supervisors $21.96 $16.51 $24.69
 Pharmacists $56.74 $43.29 $63.46
 Registered Nurses $28.29 $21.10 $31.89
 Retail      
 Retail Salespersons $11.30 $8.13 $12.89
 Stock Clerks and Order Fillers $10.60 $8.11 $11.84
 Clerical      
 Computer Operators $20.47 $12.20 $24.61
 Customer Service Representatives $14.53 $9.48 $17.06
 Data Entry Keyers $13.65 $9.38 $15.79
 Executive Secretaries and Executive Administrative Assistants $18.53 $12.49 $21.55
 File Clerks $10.99 $8.62 $12.18
 Office Clerks, General $12.02 $8.46 $13.81
 Payroll and Timekeeping Clerks $17.36 $11.62 $20.23
 Receptionists and Information Clerks $10.34 $8.17 $11.43
 Switchboard Operators, Including Answering Service $11.79 $9.13 $13.12
 Unskilled      
 Construction Laborers $13.71 $9.49 $15.82
 Couriers and Messengers $9.95 $8.05 $10.90
 Packers and Packagers, Hand $11.16 $8.14 $12.67
 Semi-Skilled      
 Cashiers $8.86 $7.86 $9.36
 Security Guards $10.76 $8.09 $12.09
 Sheet Metal Workers $21.84 $15.47 $25.03
 Skilled      
 Architectural and Civil Drafters $22.73 $15.64 $26.27
 Crane and Tower Operators $22.49 $15.46 $26.00
 Maintenance Workers, Machinery $21.13 $15.05 $24.17
 Machinists $20.69 $15.20 $23.43
 Welders, Cutters, Solderers, and Brazers $19.41 $13.38 $22.42
 Technical      
 Automotive Service Technicians and Mechanics $16.89 $10.43 $20.12
 Medical and Clinical Laboratory Technicians $15.50 $10.57 $17.97
 Pharmacy Technicians $14.56 $10.71 $16.49

Source: Chmura Economics, JobsEq, Occupational Wages for Selected Occupations, extracted 4/5/2017. Data as of 2015.

Contact NLEP

 
North Louisiana Economic Partnership 
 
Regions Tower
333 Texas Street, Suite 411 
Shreveport, LA 71101 
(318)677-2536 
 
Premier Plaza
1900 North 18th Street, Suite 501 
Monroe, LA 71201 
(318)387-0787