Louisiana, known as the "Pelican State", is an affordable Gulf Coast state with low housing but high insurance costs. Here is everything you need to know about the cost of living in the Pelican State — from housing and groceries to taxes, utilities, childcare, and what salary you actually need.
Here is what a typical month costs in Louisiana for a single person earning the median income of $52,300/year:
Each category shows how Louisiana compares to the national average. Green means cheaper, yellow means similar, orange/red means more expensive.
Adjust your salary to see a detailed monthly budget breakdown for living in Louisiana.
Select a state to see how much salary you would need there to maintain the same lifestyle you have in Louisiana.
The most popular cities for residents and newcomers in Louisiana:
Housing is the single biggest expense in Louisiana, as it is everywhere. The median home price in Louisiana is $205,000, and the median rent for a one-bedroom apartment is $900/month. With a housing cost index of 72, Louisiana housing is 28% cheaper than the national average.
Housing in Louisiana is a genuine advantage. The low cost of housing frees up income for savings, investments, and discretionary spending that residents of expensive states simply cannot afford.
Louisiana has a state income tax rate of 4.25%. On the median household income of $52,300, you will pay approximately $2,223/year in state income tax ($185/month). This is below the national average — a tax advantage for Louisiana residents.
The average single person in Louisiana spends approximately $400/month on groceries. A family of four can expect to spend $1,000-$1,200/month. The food cost index of 99 means groceries in Louisiana are 1% below the national average.
Gas prices in Louisiana average $2.95/gallon. For the average commuter driving 15,000 miles/year at 25 MPG, that is roughly $1,770/year in fuel costs.
Louisiana healthcare costs are 7% below the national average (index: 93). The average annual healthcare cost per person in Louisiana is approximately $5,580 including premiums and out-of-pocket expenses. Employer-sponsored health insurance covers the majority of working adults.
Infant daycare in Louisiana averages $750/month ($9,000/year). This is below the national average, making Louisiana more family-friendly from a financial perspective. Many families in Louisiana find that one parent staying home is more cost-effective when two or more children need daycare.
Louisiana offers a solid balance of cost, opportunity, and quality of life. With costs near the national average, you get access to growing job markets in New Orleans and Baton Rouge, and a cost of living that leaves room for saving and investing.
See all Louisiana financial calculators:
Louisiana (LA) has a cost of living index of 91, meaning it is 9% cheaper than the US average. Housing is the biggest factor with an index of 72. The median rent is $900/month and the median home price is $205,000. Louisiana ranks #13 out of 50 states for affordability (1 = cheapest).
For a single person, a comfortable salary in Louisiana is approximately $67,990/year ($5,666/month). For a family of four, aim for $115,060/year. This covers housing at 30% of income, groceries ($400/mo), transportation, healthcare, and a 15% savings rate. The median household income in Louisiana is $52,300.
The median rent for a one-bedroom apartment in Louisiana is approximately $900/month. A two-bedroom averages $1,215/month. Rent varies significantly by city: New Orleans, Baton Rouge, Shreveport are the most popular metro areas. Housing in Louisiana is affordable compared to the national average.
Louisiana is an excellent choice for affordability. With a cost of living 9% below the national average and median rent of just $900/month, your money goes significantly further here. Top cities include New Orleans, Baton Rouge, Shreveport.
The most affordable areas in Louisiana are typically smaller cities and rural areas away from the major metros. Within Louisiana, costs can vary 20-40% between the most expensive city (New Orleans metro) and more affordable areas. Lafayette and Lake Charles tend to offer lower costs while still providing good amenities and job opportunities.
The average monthly grocery bill in Louisiana for a single person is approximately $400 ($1,000 for a family of four). Louisiana food costs are 1% below the national average. Shopping at Walmart, Aldi, and local discount stores can reduce this by 15-25%.
The average monthly electric bill in Louisiana is approximately $135. Total utilities (electric, gas, water, internet) average $297/month. Louisiana utilities are 8% below the national average. Utility costs are manageable for most households.
Louisiana has a state income tax rate of 4.25%. On the median household income of $52,300, that is approximately $2,223/year in state income tax. This is below the national average — a tax advantage.