The I-10 corridor decision for oil and gas workers. Louisiana has relatively low income taxes (1.85-4.25% progressive) compared to other states, but Texas has 0% (constitutionally prohibited). At $100,000: Louisiana $3,425 vs Texas $0. The catch: Louisiana has the lowest property taxes in the nation (0.55% average) vs Texas's high 1.6%. For renters and high earners, Texas wins; for homeowners with moderate incomes, Louisiana's property tax advantage is significant.

By CountryTaxCalc Research Team

Last Updated: April 2026

The Big Picture

⚜️ Louisiana

4.25%

Progressive Tax

3 brackets 1.85-4.25%

⭐ Texas

0%

No Income Tax

Constitutionally prohibited

Typical Annual Savings

At $100,000 income:

$3,425

That is $285/month back in your pocket!

Tax Savings by Income Level

IncomeLA TaxTX TaxSavings10-Year
$50,000 $1,356$0TX saves $1,356$13,560
$75,000 $2,419$0TX saves $2,419$24,190
$100,000 $3,425$0TX saves $3,425$34,250
$150,000 $5,550$0TX saves $5,550$55,500
$200,000 $7,675$0TX saves $7,675$76,750
$250,000 $9,800$0TX saves $9,800$98,000

Louisiana Pros and Cons

✅ Pros

  • Lowest property taxes in nation (0.55% average)
  • New Orleans unique culture: food, music, festivals
  • Oil/gas industry presence (refineries, offshore)
  • Lower cost of living than Houston in most categories

❌ Cons

  • 1.85-4.25% income tax (vs TX 0%)
  • Hurricane risk: Katrina, Ida devastated regions
  • Weak economy outside energy sector
  • Infrastructure and public services lag

Texas Pros and Cons

✅ Pros

  • 0% state income tax (constitutionally prohibited)
  • Houston: largest energy hub in US (oil, gas, renewables)
  • Diverse economy: tech, healthcare, aerospace beyond energy
  • Better infrastructure and public services

❌ Cons

  • Property taxes 1.6% (nearly 3x Louisiana's 0.55%)
  • Houston traffic and sprawl legendary
  • Extreme summer heat with high humidity
  • Less cultural distinctiveness than New Orleans
💡

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Frequently Asked Questions

Q: How much will I save moving from Louisiana to Texas?

At $100,000 income: save $3,425/year in income tax. However, Texas property taxes are nearly 3x Louisiana's (1.6% vs 0.55%). On a $300K home: TX = $4,800/year, LA = $1,650/year—a $3,150 difference. Net savings at $100K with $300K home: only $275/year. High earners without expensive homes benefit most; homeowners with moderate incomes may lose money.

Q: Is Houston or New Orleans better for oil and gas careers?

Houston dominates. It's the energy capital of the US with every major oil company HQ or major office: ExxonMobil, Chevron, ConocoPhillips, Shell, BP. Louisiana has refineries and offshore operations but fewer corporate jobs. For engineering, finance, or management roles in energy, Houston offers 10x the opportunities. For field work, both states have positions.

Q: What about Louisiana's incredibly low property taxes?

Louisiana's 0.55% average property tax is the lowest in the nation (Texas is 1.6%, nearly 3x higher). On a $400K home: Louisiana = $2,200/year, Texas = $6,400/year. This $4,200 annual difference exceeds the income tax savings for earners under $125K. If you plan to buy an expensive home, Louisiana's property tax advantage is massive.

Q: Should I consider Lake Charles or Beaumont (border area)?

The I-10 corridor from Lake Charles (LA) to Beaumont (TX) is a major petrochemical region. Lake Charles has Louisiana's low property taxes; Beaumont has Texas's zero income tax. For the border region specifically: Lake Charles is better for homeowners with moderate incomes; Beaumont is better for renters and high earners. Many workers live in one state and commute to the other.

Q: Is New Orleans worth the tax disadvantage for quality of life?

For many, yes. New Orleans offers culture, cuisine, and lifestyle unmatched by Houston—but the tax and economic trade-offs are real. New Orleans' economy is tourism/hospitality-heavy with lower salaries. A $100K Houston salary might be $75-80K in New Orleans. Combined with 4.25% income tax, total compensation gap is significant. Choose New Orleans for lifestyle; Houston for career and finances.

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