New Orleans Property Taxes Guide for Home Buyers

January 7, 2024

How Property Tax Assessment Works in New Orleans

Louisiana’s property tax system is based on assessed value rather than market value. The Orleans Parish Assessor determines the assessed value of your property, which is typically lower than what you paid for it. This assessed value is then multiplied by the millage rate (the tax rate) to calculate your annual tax bill.

The millage rate varies by parish and includes taxes for schools, fire protection, levee maintenance, and other services. In Orleans Parish, the combined millage rate is significantly higher than in surrounding parishes like Jefferson or St. Bernard, so knowing which area you’re buying in matters considerably. You can find current millage rates on the City of New Orleans official website.

Assessed values are updated periodically, and property owners have the right to appeal if they believe their assessment is too high. Many New Orleans homebuyers find it worthwhile to review their assessment shortly after purchase.

Homestead Exemptions and Tax Relief Programs

About the Author: Billy Borrouso is a licensed real estate broker and Certified Residential Specialist (CRS) with over 20 years of experience in the New Orleans metropolitan area. Since 2004, Billy has guided buyers, sellers, and investors through every stage of the real estate process , from first-time home purchases to new construction in Old Metairie. He is a consistent NOMAR Gold Award recipient (2007–2011) and previously worked with Esslinger-Wooten-Maxwell Realtors, one of South Florida’s largest firms. Billy’s deep knowledge of New Orleans neighborhoods and his hands-on approach make him a trusted partner from start to finish.

One of Louisiana’s biggest advantages is the homestead exemption, which provides significant tax relief for primary residences. If you occupy your home as your primary residence, you can claim an exemption on the first $75,000 of assessed value. This exemption is automatically applied in most cases, reducing your taxable assessment substantially.

For homeowners age 65 or older with limited income, additional exemptions may apply. Veterans and disabled individuals also qualify for special exemptions under certain conditions. When you sell your property, understanding how these exemptions transfer (or don’t) to the new owner is important for pricing your home competitively.

Budgeting for Property Taxes and Planning Your Purchase

Property taxes are typically paid twice yearly in New Orleans. When calculating your true cost of homeownership, include property taxes in your monthly budget alongside insurance, maintenance, and utilities. A real estate professional can help you estimate your annual tax liability based on the specific property and neighborhood you’re considering.

Different neighborhoods and property types carry different assessment patterns. Homes in developing communities throughout Greater New Orleans may have varying assessments based on recent sales data and local improvements. Getting pre-approval for financing that accounts for these costs ensures you won’t face budget surprises.

Have questions about buying or selling? Reach out to us today and we’ll be happy to help you every step of the way.