Louisiana Income
Tax Rates & Rules

Louisiana uses a flat 3% individual income tax rate for tax years beginning on or after January 1, 2025, so the same statutory rate continues to apply in 2026. The state no longer uses the former graduated 1.85%, 3.5% and 4.25% brackets for current individual income tax.

The basic calculation is simpler than under the previous bracket system, but Louisiana taxable income can still differ from federal income because the state applies its own deductions, exclusions, credits and residency rules. Louisiana also adjusts its standard deduction annually for inflation.

Source: Louisiana Individual Income Tax

What Is the Louisiana Income Tax Rate for 2026?

The Louisiana individual income tax rate for 2026 is a flat 3% of Louisiana taxable income.

Louisiana Taxable Income × 3% = Basic Louisiana Income Tax

A flat rate means Louisiana no longer has multiple individual income tax brackets. The amount of tax still depends on how much income remains after the deductions and adjustments allowed under Louisiana law.

For example, $50,000 of Louisiana taxable income would produce $1,500 of basic state income tax before any applicable credits.

Source: Louisiana Income Tax Rate Guidance

How Is Louisiana Taxable Income Calculated?

Louisiana taxable income is the amount subject to the 3% state rate after the taxpayer applies the Louisiana adjustments and deductions that are allowed for the tax year.

• Determine the income that must be reported for Louisiana purposes.
• Apply Louisiana additions, exclusions and subtraction modifications when applicable.
• Apply the Louisiana standard deduction or other deductions available under current state law.
• Determine Louisiana taxable income.
• Multiply Louisiana taxable income by 3%.
• Subtract eligible Louisiana income tax credits.
• Compare final liability with withholding and estimated payments already made.

Louisiana tax liability should not be calculated from gross wages alone. Payroll withholding is a prepayment while the annual return determines the taxpayer's final state income tax.

Louisiana Standard Deduction in 2026

Louisiana increased the individual standard deduction beginning in 2025 and now adjusts the deduction annually for inflation. The final deduction used on a 2026 income tax return should come from the 2026 return instructions when they are released.

The statutory post-reform base is $12,500 for single and married-filing-separately taxpayers. Married filing jointly, qualifying surviving spouse and head-of-household taxpayers receive 200% of the single amount before the annual inflation adjustment.

Source: Louisiana Standard Deduction Reform FAQ

Source: Louisiana Annual Standard Deduction Adjustment FAQ

Why the 2026 Withholding Deduction Is Not Necessarily the Final Return Deduction

Louisiana's 2026 payroll withholding rule used $12,875 for single and married-separate withholding calculations and $25,750 for married-joint, qualifying surviving spouse and head-of-household withholding calculations.

However, Louisiana Department of Revenue explicitly stated that those withholding amounts were based on CPI information available as of December 1, 2025 and that the standard deduction allowed on the final 2026 income tax return could differ slightly after complete 2025 CPI data became available. For an annual income tax return, the return instructions should control.

Source: Louisiana 2026 Withholding Rule

Does Louisiana Have Income Tax Brackets in 2026?

No. Louisiana repealed the graduated individual income tax brackets for tax periods beginning on or after January 1, 2025.

Before the reform, Louisiana used three individual tax rates. The current system applies one 3% rate to Louisiana taxable income. This reduces bracket complexity, but it does not eliminate deductions, state-specific adjustments or tax credits.

Who Must File Louisiana Individual Income Tax?

Louisiana residents can have a filing requirement based on state income and filing rules while nonresidents and part-year residents can owe Louisiana tax on Louisiana-source income.

Resident taxpayers generally use Form IT-540. Nonresidents and part-year residents use the applicable nonresident return and tax computation rules. Military income, gambling winnings and professional athlete income have additional sourcing or filing rules.

Source: Louisiana Individual Income Tax

When Is Louisiana Income Tax Due?

Louisiana individual income tax returns and payments are generally due on or before May 15 of the following year for calendar-year taxpayers.

A 2026 calendar-year return is therefore generally due in May 2027, subject to weekend, holiday and any future disaster-relief adjustments. Louisiana provides an automatic filing-extension framework, but an extension to file does not necessarily postpone the obligation to pay tax due.

Source: Louisiana Individual Income Tax

Louisiana Withholding vs. Final Income Tax

Louisiana wage withholding is an advance payment toward the employee's annual state income tax rather than the final tax calculation.

For payroll, Louisiana uses withholding tables and formulas that can intentionally differ from the exact annual liability calculation. The state has explained that its withholding methodology can include a cushion to reduce the chance of an underpayment when the taxpayer files.

To estimate state withholding together with federal payroll taxes, use the Louisiana Paycheck Calculator.

When Are Louisiana Estimated Tax Payments Required?

Louisiana estimated tax payments are generally required when expected state income tax after credits and withholding exceeds the state's threshold.

Calendar-year taxpayers generally make estimated payments on April 15, June 15, September 15 and January 15. Special timing rules can apply to farmers and fishermen.

Source: Louisiana Estimated Income Tax Guidance

Source: Louisiana 2026 Estimated Tax Voucher

What Types of Income Can Be Subject to Louisiana Income Tax?

Louisiana individual income tax can apply to wages, business income, investment income and other income included under Louisiana rules.

• Wages and salaries
• Self-employment and business income
• Taxable interest and dividends
• Rental income
• Capital gains
• Pass-through income
• Certain gambling winnings
• Other Louisiana-source income for nonresidents

The tax treatment can vary by income category because Louisiana has separate exclusions, deductions and special sourcing rules.