The Louisiana state tax rate is a flat 3 percent on individual income, 5.5 percent on corporate income, and 5 percent on most retail sales at the state level, with parish and municipal sales taxes added on top. The individual and corporate rates took their current flat form for tax years beginning on or after January 1, 2025, after a 2024 reform replaced Louisiana’s older graduated brackets.1Justia. Louisiana Revised Statutes Title 47, RS 47:32 – Rates of Tax
Individual Income Tax
Every Louisiana resident pays the same 3 percent rate on taxable income, no matter how much they earn or how they file.2Louisiana Department of Revenue. What Are the Individual Income Tax Rates and Brackets? Before 2025, the state used three brackets: 1.85 percent, 3.50 percent, and 4.25 percent. Act 11 of the 2024 Third Extraordinary Session collapsed those into the single 3 percent rate.3Louisiana State Legislature. Act No. 11 – 2024 Third Extraordinary Session
The 3 percent rate applies to Louisiana taxable income, not your gross pay. The calculation starts with your federal adjusted gross income, then applies Louisiana’s modifications and standard deduction. One modification worth knowing: Louisiana used to let you deduct your federal income taxes paid from your state return, a feature few other states offered. The 2024 reform eliminated that deduction and replaced it with the larger standard deduction described below.
Louisiana income tax sits on top of federal income tax, not in place of it. Federal brackets for 2026 run from 10 percent to 37 percent, so a single filer earning in the $50,400 to $105,700 range owes 22 percent federally on income in that band while owing Louisiana only 3 percent.4Internal Revenue Service. IRS Tax Inflation Adjustments for Tax Year 2026
Standard Deduction
Louisiana’s combined personal exemption and standard deduction reduces your taxable income before the 3 percent rate hits. For 2025:
- Single filers and married filing separately: $12,500
- Married filing jointly, qualifying surviving spouse, and head of household: $25,000
Starting in 2026, these amounts adjust each year with the Consumer Price Index for All Urban Consumers.3Louisiana State Legislature. Act No. 11 – 2024 Third Extraordinary Session The reform also repealed the extra exemptions Louisiana previously allowed for dependents, blind filers, and taxpayers over 65. On the other hand, the retirement income exemption for people aged 65 or older doubled from $6,000 to $12,000 per person, and it will also adjust for inflation beginning in 2026.5Louisiana Department of Revenue. RIB 25-012 Louisiana Individual Income Tax Reform
Sales Tax
The state sales tax rate is 5 percent on most goods and taxable services.6Louisiana Department of Revenue. General Sales and Use Tax That is only the state’s share. Parishes and municipalities layer their own sales taxes on top, so the amount you actually pay at the register depends on where you buy. Combined state and local rates can exceed 10 percent in some Louisiana jurisdictions, putting the state near the top of the country for total sales tax burden.
For businesses, the state and local portions are reported separately. The state share goes to the Louisiana Department of Revenue, and local shares go to the parish or municipal tax authorities.
Corporate Income Tax
Louisiana taxes corporate income at a flat 5.5 percent for tax years beginning on or after January 1, 2025.7Justia. Louisiana Revised Statutes Title 47, RS 47:287.12 – Rates of Tax The previous system used four brackets at 3.5 percent, 5.5 percent, 6.5 percent, and 7.5 percent.8Louisiana Department of Revenue. What Is the Corporation Income Tax Rate?
Any corporation doing business in Louisiana, or earning income from sources within the state, owes the tax. A corporation operating in multiple states apportions its income to figure out what share belongs to Louisiana, and the 5.5 percent rate applies to that share. The federal corporate rate of 21 percent applies on top.
When Louisiana Tax Is Due
Individual returns for tax year 2025 are due April 15, 2026, matching the federal deadline. Louisiana grants an automatic six-month extension to file, moving the deadline to October 15, and no separate extension request is required for tax years beginning on or after January 1, 2022.9Louisiana Department of Revenue. LAC 61:III.2501 – Extension of Time for Filing Individual Income Tax Returns
The extension only buys time to file. Payment is still due April 15. If you file late, Louisiana charges 5 percent of the tax due for every 30 days (or partial 30-day period) the return is overdue, capped at 25 percent. If you file on time but pay late, a separate 5 percent penalty applies to the unpaid balance for each 30-day period it stays outstanding, and interest accrues on top.10Justia. Louisiana Revised Statutes Title 47, RS 47:1602 – Penalty for Failure to File or Pay Paying as much as you can by April 15 cuts down what those penalties and interest compound against.