We use a combination of analytical and numerical techniques to calculate the noise threshold and resource requirements for a linear optical quantum computing scheme based on parity-state encoding. Parity-state encoding is used at the lowest level of code concatenation in order to efficiently correct errors arising from the inherent nondeterminism of two-qubit linear-optical gates. When combined with teleported error-correction (using either a Steane or Golay code) at higher levels of concatenation, the parity-state scheme is found to achieve a saving of approximately three orders of magnitude in resources when compared to a previous scheme, at a cost of a somewhat reduced noise threshold.
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