Texas has no state income tax—but it leans heavily on property taxes. On average, Texas homeowners pay an effective 1.36% of home value every year, compared to 0.55% in Louisiana (Mississippi 0.58%, Alabama 0.36%). That’s a big head start for Louisiana before any veteran-specific breaks kick in.
Louisiana now has a simple flat income tax (3%). Starting Jan 1, 2025, Louisiana moved to a flat 3% individual rate. Meanwhile, military retirement is exempt from Louisiana income tax, and up to $50,000 of active-duty pay earned while stationed outside LA (120+ consecutive days) is excluded—so a lot of military income isn’t touched anyway.
Veteran-specific property tax relief is broader in Louisiana under 100%
LA adds extra veteran homestead relief at 50–69% and 70–99% disability ratings (on top of the standard homestead), with 100% rated vets fully exempt.
Texas gives small fixed-dollar breaks for partial ratings (e.g., $5k–$12k off value), with a full homestead exemption only at 100%. Even after Texas’s 2023 homestead increase to $100,000, the average TX tax rate is still high, so partial-rating vets often save more in Louisiana.
Day-one dollars Louisiana adds that others don’t: New residents (including veterans and military retirees) pay no more than $90 in total vehicle use tax when bringing in an already-titled car—often hundreds saved per vehicle versus percentage-based systems.
The simple math (why TX’s “no income tax” often loses to LA’s lower property tax)
Take a typical $300,000 home and a second-career salary of $70,000:
And that’s before Louisiana’s extra veteran homestead relief at 50–99% disability (which would shrink the LA property bill even more), and before considering that military retirement is exempt in Louisiana.
Math > marketing: Louisiana often beats Texas where it counts—your wallet. Lower property taxes + real disabled-vet relief + tax-free military retirement = more take-home for your family. Make the move with confidence—get started with The Boot and let us help you make Louisiana home.