Cost of Living in Louisiana

(Last Updated – August 28, 2025)

There are plenty of reasons to consider putting down roots in Louisiana. The winters are mild, the food is famously delicious, and the culture is like nowhere else in the country. What’s more, the cost of living is below the national average, which means your income will go further here.

But as with any other state, there are drawbacks to consider. For instance, hurricanes and other natural disasters are driving up home insurance costs. And Louisiana’s hot, humid weather may not be everyone’s cup of tea.

Let’s take a look at how much living in Louisiana will cost using the most recent data from the Missouri Economic Research and Information Center (MERIC), the Bureau of Economic Analysis, the U.S. Census, and other sources.

What’s the Average Cost of Living in Louisiana?

Louisiana has the 17th-lowest cost of living in the U.S. as of the first quarter of 2025, according to MERIC data.

Every state receives a cost-of-living index (COLI) number, with the national average of 100 serving as the baseline. A COLI under 100 signifies a state is less expensive than the baseline, whereas a COLI over 100 indicates it’s more expensive.

Louisiana’s COLI number is 93.2. While that’s lower than the national average, it’s higher than neighboring states. Mississippi, Alabama, and Arkansas have COLI numbers of 87.3, 87.6, and 90.5, respectively. Texas, Louisiana’s neighbor to the west, has a COLI number of 91.8.

Here’s what Louisiana residents can expect to spend each year in the following categories, according to data from the Bureau of Economic Analysis.

Based on the figures above, the average monthly expenses for one person in Louisiana come out to around $4,035.

Housing Costs in Louisiana

Median Housing Costs in Louisiana: $833 to $1,543 per month

Is Louisiana one of the best affordable places in the U.S.? Its relatively low housing costs certainly help make the case for it to be.

The median value of owner-occupied homes in Louisiana was $212,038, according to August 2025 data from Zillow. That’s substantially lower than the national average home value of $368,581.

Below is the median monthly mortgage cost for a home and median rent by unit size.

•  Median monthly mortgage home loan cost: $1,543

•  Studio: $833

•  1 bedroom: $871

•  2 bedroom: $1,013

•  3 bedroom: $1,136

•  4 bedroom: $1,405

•  5 or more bedrooms: $1,543

•  Median gross rent: $1,020

Good news for first-time home buyers or those looking to make a move: As of July 1 2023, the state had roughly 2.1 million housing units, according to the U.S. Census Bureau. This means that there may be plenty of housing stock available, depending on the area and the type of home you want.

Here’s a look at the average home value in selected Louisiana cities, according to the Zillow Home Values Index:

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Utility Costs in Louisiana

Average Utility Costs in Louisiana: $320 per month

A monthly mortgage or rent may take a big bite out of your budget, but recurring home utility costs can also have an impact. Here’s what those bills can run you each month in Louisiana.

Groceries & Food

Average Grocery & Food Costs in Louisiana: $336 per person per month

How much you spend on food each month will vary quite a bit, depending on where you live, how many people are in your family, and what type of food you typically purchase.

The Bureau of Economic Analysis data revealed that Louisiana’s per-capita expenses for food and beverages was $4,034 annually. This comes out to around $336 for an average person’s monthly food budget, or $1,344 per month for a typical family of four.

According to data from The Council for Community and Economic Research, grocery indices for several areas in Louisiana are below the national COLI baseline.

Transportation

Average Transportation Costs in Louisiana: $10,291 to $19,149 per year

New Orleans may be famous for its streetcars, but public transportation options vary by parish and are generally limited to buses and/or ferries. This helps explain why a car is the transportation of choice for a typical Louisianian. In fact, nearly 92% of residents own a car, according to data from the Federal Highway Administration and U.S. Census Bureau.

MIT’s Living Wage Calculator, last updated in February 2025, offers a snapshot of average expenses by household in each state. Notice how transportation costs increase with family size.

Health Care in Louisiana

Average cost of health care in Louisiana: $8,523 per person, per year

They may not put a regular dent in your budget, but health care costs can and do add up. In fact, they represent 8% of the average American’s budget, per Bureau of Labor Statistics data.

In Louisiana, residents pay an average of $9,576 a year for health care. This is slightly higher than the national average of $9,130, according to data from the U.S. Bureau of Economic Analysis.

But remember, these figures are just estimates. The amount you actually pay will depend on a number of factors, including your age, medical needs, and the type of health coverage you have.

Child Care in Louisiana

Average Child Care Costs in Louisiana: $615 to $993 per child, per month

As you might imagine, the average amount for childcare in Louisiana depends largely on your child’s age and the type of child care setting you’re seeking. As the data from CostofChildCare.org shows, child care expenses tend to decrease as children get older.

Taxes in Louisiana

Average Taxes in Louisiana: 3% flat tax

As of the 2025 tax year, Louisiana adopted a flat income tax rate of 3% for all individual taxpayers, regardless of income level or filing status. It also has a flat sales tax rate of 5% as of 2025, though cities and other local municipalities may charge additional sales or other taxes.

Here’s how Louisiana compares to neighboring states.

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Miscellaneous Costs

With its picturesque byways, vibrant live music scene, world-class cuisine, and a calendar chock full of events, Louisiana is always cooking up a good time. And fortunately, many of those attractions can be enjoyed for next to nothing.

•   Old State Capitol (Baton Rouge): Free

•   Poverty Point World Heritage Site (Epps): $4

•   Streetcar ride, one way (New Orleans): $1.25 per adult

•   Mardi Gras World (New Orleans): $29.95 adult ticket

How Much Money Do You Need to Live Comfortably in Louisiana?

Deciding how much money you need to live comfortably in Louisiana will depend on a variety of factors, including where you decide to live, the size of your household, and your lifestyle.

Still, you may find that your income goes farther in Louisiana compared to other states. The cost of living in Louisiana ranks 17th for the lowest annual average cost of living index according to MERIC. And U.S. News & World Report ranked the Bayou State sixth for affordability and eighth for housing affordability.

What City Has the Lowest Cost of Living in Louisiana?

As we’ve discussed, Louisiana overall has a low cost of living compared to the national average. But there are areas where your dollar can go even further. Here are three of the lowest-cost cities in the state, per the Council for Community and Economic Research’s 2024 Cost of Living Index.

Hammond

Hammond may be home to Southeastern Louisiana University, but it’s so much more than a typical college town. A revitalized downtown district booming with shops and diverse restaurants, cute cafes sprinkled throughout the city, and the two-acre Cate Square Park all offer plenty of places to pass the time. And when big-city needs call, New Orleans is a short 45-minute drive away.

Lafayette

Lively music and festivals? A rich Cajun and Creole culture? A best-in-class culinary scene? Lafayette checks all these boxes and more. No wonder it’s nicknamed “The Happiest City in America.” Another reason to smile? The city is a hub for the oil and gas industry and is attracting jobs in the technology sector.

Monroe

Tucked in the northeastern part of the state, Monroe may be best known as the home of the Robertson family of “Duck Dynasty.” But this bustling city is hardly a secret. Locals and visitors alike flock to Monroe for its easy access to Ouchaita riverfront and bayous as well as the University of Louisiana at Monroe. Its affordable housing is attractive as well: The average house price is around $149,806, according to Zillow.

Helpful Resources for Future Louisiana Residents