Homeowners whose property values are near the $75,000 Homestead Exemption threshold may notice that even a modest increase in market value can result in a significant increase in their tax bill. Here’s why.
How the Homestead Exemption Works
In Louisiana, the Homestead Exemption exempts up to $75,000 of a qualified primary residence’s fair market value from taxation. Only amounts above $75,000 are subject to tax. That remaining amount is then assessed at 10%, and the millage rate is applied to that assessed value.
For the example below, we use the 2025 West Bank millage rate of 101.07 mills (0.10107).
Example: Home Valued at $80,000
Fair Market Value: $80,000
Less Homestead Exemption: $75,000
Taxable Fair Market Value: $5,000
Apply 10% Assessment Ratio: $5,000 × 10% = $500 Taxable Assessed Value
Apply Millage Rate: $500 × 0.10107 = $50.54 Estimated Tax
After Reassessment: Value Increases to $90,000
Fair Market Value: $90,000
Less Homestead Exemption: $75,000
Taxable Fair Market Value: $15,000
Apply 10% Assessment Ratio: $15,000 × 10% = $1,500 Taxable Assessed Value
Apply Millage Rate: $1,500 × 0.10107 = $151.61 Estimated Tax
