Louisiana — Personal Income Tax

Louisiana levies an income tax on the net income of both resident and nonresident individuals. Resident individuals must pay tax on net income from all sources, wherever derived. A person is deemed a Louisiana resident if they are domiciled in the state, maintain a permanent place of abode in Louisiana, or spend more than six months of the taxable year in the state. Nonresident individuals must pay tax on net income derived from property located in Louisiana, services rendered in Louisiana, business transacted in Louisiana, or other Louisiana sources.

All individuals required to file a federal individual income tax return must also file a Louisiana individual income tax return. No Louisiana income tax is due for any period for which an individual is not required to file under this rule.

Source: La. R.S. 47:31; La. R.S. 47:111

Louisiana imposes a flat 3% tax rate on the taxable income of individuals for tax years beginning on or after January 1, 2025. This flat rate replaced the prior graduated bracket structure that had rates of 1.85%, 3.5%, and 4.25%. The change was enacted by Act 11 of the 2024 Third Extraordinary Session, effective December 4, 2024.

Source: La. R.S. 47:32; Acts 2024, 3rd Ex. Sess., No. 11, §1; Revenue Information Bulletin No. 25-012

Louisiana allows a standard deduction when calculating state personal income tax. For tax year 2025, the standard deduction is $12,500 for single filers and married individuals filing separately. For married filing jointly, heads of household, and qualifying surviving spouses, the standard deduction is $25,000 (i.e., 200% of the single-filer amount).

Beginning with the 2026 tax year, these amounts will be adjusted annually for inflation. Under La. R.S. 47:294(C), the deduction increases each year by the percentage increase in the Consumer Price Index for All Urban Consumers (CPI-U, U.S. city average, all items, not seasonally adjusted) for the 12-month period ending August 31 of the prior year. The adjustment is rounded to the nearest $100. For tax year 2026, the Louisiana Department of Revenue has preliminarily set the standard deduction at $12,875 for single/married filing separately and $25,750 for married filing jointly, head of household, and qualifying surviving spouse. These amounts were published in Revenue Information Bulletin No. 26-005 (Jan. 12, 2026) and reflect the first inflation-indexed adjustment to the deduction under the revised statute. Future years’ amounts will be calculated and announced annually each fall as new CPI-U data becomes available.

Taxpayers must use the same filing status on their Louisiana return as on their federal return (La. R.S. 47:294(A)). The inflation-indexing mechanism, effective for returns filed for tax years beginning after January 1, 2025, replaces the prior system where deduction adjustments required legislative action.

Source: La. R.S. 47:294 Source: Louisiana Department of Revenue – Revenue Information Bulletin No. 26-005

Individual income tax returns for calendar-year taxpayers are due on or before May 15 of the year following the close of the tax year. For fiscal-year taxpayers, returns are due on the 15th day of the fifth month following the close of the fiscal year. If the due date falls on a Saturday, Sunday, or legal holiday, the return must be filed on the next business day.

For tax years beginning on or after January 1, 2022, individuals receive an automatic six-month extension to file without submitting a separate extension request. The extension applies only to filing the return, not to payment of any tax due.

Source: La. R.S. 47:103

Louisiana eliminated separate personal exemptions and dependent deductions for tax years beginning on or after January 1, 2025. Prior law allowed personal exemptions and deductions for dependents that mirrored federal rules, including extra exemptions for the blind and aged, plus a $1,000 deduction per dependent. The 2024 tax reform replaced these itemized exemptions with a simplified standard deduction structure. Taxpayers no longer claim individual personal or dependency exemptions on Louisiana returns.

Source: La. R.S. 47:294; Acts 2024, 3rd Ex. Sess., No. 11, §2

Louisiana requires individuals to make quarterly estimated income tax payments if their expected Louisiana income tax liability (after credits and withholding) exceeds $1,000 for single filers or $2,000 for joint filers. This threshold determines whether a declaration of estimated tax must be filed and quarterly payments made throughout the year.

Quarterly installment due dates

For calendar-year taxpayers filing on or before April 15, estimated tax must be paid in four equal installments due:

• April 15 (1st installment)
• June 15 (2nd installment)
• September 15 (3rd installment)
• January 15 of the succeeding year (4th installment)

If the declaration is filed after April 15 but not after June 15, the estimated tax is paid in three equal installments (first payment due with the declaration, remaining payments on September 15 and January 15). If filed after June 15 but not after September 15, payments are due in two equal installments (first payment with the declaration, second on January 15). If filed after September 15, the entire estimated tax is due in full at the time of filing.

Exception for farmers and fishermen

Individuals who derive at least two-thirds of their estimated gross income from farming (including oyster farming) or fishing may file a single declaration and pay the entire estimated tax on or before January 15 of the succeeding taxable year without incurring an underpayment penalty. This exception recognizes the seasonal nature of agricultural and fishing income.

Early filing exception

Taxpayers may avoid the January 15 estimated payment requirement or declaration amendment requirement if they file their annual Louisiana individual income tax return by January 31 of the succeeding year and pay the total amount due in full with that return. An additional exception applies if the return is filed by March 1 (for farmers and fishermen) and the full tax is paid with the return; this exception relieves the taxpayer from making any estimated tax payments for that year.

Safe harbor from underpayment penalty

Louisiana imposes an underpayment penalty on late or insufficient estimated tax installments. However, no penalty is imposed if the total estimated payments made on or before each installment due date equal or exceed the lesser of:

• 90% of the current year's tax (or 66⅔% for farmers/fishermen), or
• 100% of the prior year's tax, provided the taxpayer filed a Louisiana return for the prior year covering a full 12-month taxable year.

This safe harbor provides certainty for taxpayers whose income fluctuates year-to-year. A taxpayer who pays at least 100% of last year's liability in equal quarterly installments will avoid the underpayment penalty even if the current year's liability proves higher.

Amendments and adjustments

Taxpayers may amend their declaration if their estimated income changes during the year. Remaining installments are recalculated based on the amended estimate. If an amendment is made after September 15, any increase in estimated tax resulting from the amendment must be paid at the time the amendment is filed. Only one amendment may be filed in each interval between installment due dates.

Married couples

Married couples may file a joint declaration of estimated tax, in which case their liability is joint and several. If a joint declaration is filed but the couple files separate annual returns, the estimated tax paid may be allocated between the spouses in any manner they choose, or treated entirely as the estimated tax of either spouse.

Source: La. R.S. 47:116; La. R.S. 47:117; La. R.S. 47:117.1; La. R.S. 47:118; Louisiana Department of Revenue – Declaration of Estimated Income Taxes

Elimination of Louisiana state itemized deductions (medical/dental) for individuals

Louisiana no longer allows individual taxpayers to claim any state-level itemized deduction based on federal Schedule A or federal excess medical/dental expenses. For tax years beginning on or after January 1, 2023, the deduction for “excess federal itemized personal deductions” (previously allowed for medical and dental expenses in excess of the federal standard deduction) was repealed. This change was enacted by Acts 2021, No. 395, §1, and codified in the amended version of La. R.S. 47:293, which expressly excludes the former deduction after the 2022 tax year.

Prior Rule (no longer applicable): Before 2023, Louisiana allowed a narrow itemized deduction for taxpayers who itemized on their federal return. Taxpayers could deduct the portion of medical and dental expenses (as defined under IRC § 213(d)) that exceeded the federal standard deduction for their filing status. This was referred to as the “excess federal itemized personal deduction” under La. R.S. 47:293(3). No other federal itemized deductions—including state/local taxes paid, mortgage interest, or charitable contributions—were permitted in Louisiana. Only excess medical/dental expenses flowed through from the federal return.

Change effective for 2023 and later years: For tax years beginning on or after January 1, 2023, the deduction for excess medical/dental expenses no longer exists. Taxpayers must now use the Louisiana standard deduction (as provided in La. R.S. 47:294), regardless of whether they itemize or take the standard deduction on their federal return. No portion of federal Schedule A (including medical expenses) may be claimed on the Louisiana return.

Statutory authority:

• La. R.S. 47:293(3) (definition narrowed and deduction eliminated for years after 2022)
• Acts 2021, No. 395, §1 (enacting legislation)
• La. R.S. 47:294 (current standard deduction provision)

Note: This change is separate from Louisiana’s 2024 tax reform. The 2024 law enhanced the standard deduction and removed personal exemptions beginning in tax year 2025; the repeal of itemized deductions took effect two years earlier.

Source: La. R.S. 47:293; Acts 2021, No. 395, §1; La. R.S. 47:294

Louisiana’s 2024 personal income tax reform, enacted by Acts 2024, No. 5 (Third Extraordinary Session), subjects many individual income tax credits to repeal or sunset for tax years beginning on or after January 1, 2025. This restructuring focuses on limiting the scope and aggregate value of allowable credits for individuals.

Repeal and sunset of credits: Under Acts 2024, No. 5, most individual income tax credits not specifically preserved by the legislature are scheduled to sunset or be repealed as of June 30, 2025. The act itself does not list every affected credit in the statute text, but directs that credits listed in now-repealed or expiring sections cease to apply unless separately continued. To determine the precise status of a given credit—such as the School Readiness, Angel Investor, adoption, college savings/529, and premium tax credits—practitioners must consult the authoritative “Chart of Income and Franchise Tax Credits Sunset” published by the Louisiana Department of Revenue. This DOR chart organizes current administrative guidance on which credits are subject to repeal or sunset and the effective date for each. The chart is current as published, but always refer to legislative acts for binding legal effect.

Annual credit cap reduction: For credits falling within La. R.S. 47:6006(F), the maximum aggregate amount that can be claimed in a fiscal year drops from $180 million to $125 million for fiscal years beginning July 1, 2025. This reduction places a hard ceiling on the total value of credits—including those for which the cap statutorily applies—that may be claimed each year. Once the cap is reached, further claims are not allowed for that period. Not all credits fall under this cap; specific applicability should be verified via the statutory text and as detailed in the DOR chart.

No new individual credits created: The 2024 reform did not establish new individual income tax credits for 2025 or later years, nor did it generally enhance existing credits. The legislative changes focus on limiting or ending credits unless specifically retained or extended.

How to confirm status for specific credits:

• For any credit—including School Readiness, Angel Investor, adoption, college savings/529, premium tax, and others—refer first to the parallel provisions in Acts 2024, No. 5 and the text of the credit’s authorizing statute. Then confirm current administrative interpretation using the DOR’s “Chart of Income and Franchise Tax Credits Sunset.”
• Revenue Information Bulletins (RIBs) issued by the DOR may provide annual updates on the operative list of credits available for return preparation after July 1, 2025.

Summary:

• Credits not expressly preserved by the 2024 reforms sunset or are repealed as of June 30, 2025 (Acts 2024, No. 5; see DOR chart for the list by credit).
• Annual cap for certain credits under La. R.S. 47:6006(F) reduced to $125 million for fiscal years starting July 1, 2025.
• No new individual credits created by 2024 reform.
• Practitioners should consult legislative acts and the latest DOR chart for the precise, current status of any income tax credit after 2025.

Source: Acts 2024, 3rd Ex. Sess., No. 5 Source: La. R.S. 47:6006(F) Source: Louisiana Department of Revenue – Chart of Income and Franchise Tax Credits Sunset

Louisiana applies distinct allocation and apportionment rules to determine the portion of income taxable by the state for nonresident and part-year resident individuals. These rules are controlled primarily by La. R.S. 47:241 and its cross-referenced sections, and are implemented on the IT-540B form and worksheets.

Nonresident individuals Nonresidents are taxed only on income derived from Louisiana sources. As provided in La. R.S. 47:241(A), "the Louisiana income tax shall apply to the entire income of every natural person, whether resident or nonresident, which is derived from sources within this state." Louisiana-source income includes (with more detail in subsections):

• Compensation for labor or services performed within Louisiana (R.S. 47:241(A)(1));
• Net income from property located in Louisiana, including rental income (R.S. 47:241(A)(2));
• Net income from any business, trade, profession, or occupation carried on in Louisiana (R.S. 47:241(A)(3));
• Other income identified as Louisiana source in listed cross-referenced statutes.

For example, wages for work performed in Louisiana, rental income from Louisiana property, and partnership or S corporation income allocable to Louisiana under the entity’s own sourcing rules must be reported as Louisiana income by nonresidents. See IT-540B Instructions, Worksheet A and Schedule C for specifics on wage and pass-through entity sourcing.

Part-year residents An individual resident for only part of the year is taxed on all income earned while a Louisiana resident, regardless of source, plus any Louisiana-source income earned while a nonresident (R.S. 47:241(B)). The IT-540B Proration Worksheet is used to allocate income between the resident and nonresident periods. Filers must carefully distinguish:

• Worldwide income for the period of Louisiana residence;
• Only Louisiana-source income (per the nonresident rules above) for the period of nonresidence.

The proration calculation occurs on IT-540B, using Worksheet A to identify source income and the Proration Worksheet to annualize and allocate as required by the instructions.

Credits for taxes paid to other states Louisiana residents and part-year residents may claim a credit for net income taxes paid to another state on income taxed by both jurisdictions (R.S. 47:33; IT-540B, Schedule H). The credit is limited to the proportion of income taxed by Louisiana as well as the other state and cannot exceed the Louisiana tax on that same income.

Source: La. R.S. 47:241; Louisiana Department of Revenue — IT-540B Instructionsi.pdf)

Louisiana allows a specific exemption from state personal income tax on certain wages earned by nonresident "digital nomads" who perform limited work in the state. This exemption, codified at La. R.S. 47:297.18 and effective for tax years beginning January 1, 2022, excludes qualifying wages from Louisiana taxable income provided all statutory requirements are met.

Statutory eligibility requirements (all must be met):

1. The individual must be a nonresident of Louisiana who maintained their primary residence in another state or foreign jurisdiction for at least 180 days during the tax year;
2. The individual must have been physically present in Louisiana for work for 25 days or fewer during the tax year;
3. The income claimed as exempt must be "wages" earned for services performed in Louisiana, as defined by La. R.S. 47:297.18(B)(4)—meaning compensation subject to federal wage withholding (not self-employment, contractor, or partnership income);
4. The individual must not be required to file a Louisiana return as a resident, part-year resident, or on account of any other Louisiana-source income not covered by this exemption.

Key mechanics and loss of exemption:

• If an individual exceeds 25 days of work presence in Louisiana during the tax year, the exemption is entirely forfeited for that year—all Louisiana-sourced income becomes subject to tax as for any nonresident.
• Only wages for actual work performed in Louisiana during the qualifying days can be excluded. Income earned for remote work performed outside Louisiana, or income not classified as "wages," is not eligible.
• Taxpayers claiming the exemption must be able to substantiate their eligibility, and the burden of proof is on the filer to demonstrate compliance with all statutory prongs.

Claiming the exemption:

• Qualifying nonresidents claim this exemption by excluding eligible wages when filing Louisiana Form IT-540B.

Effective date:

• The exemption applies for taxable periods beginning on or after January 1, 2022.

Source: La. R.S. 47:297.18

Louisiana requires employers to withhold state income tax from wages paid to employees performing services in the state. Every employer maintaining an office or transacting business in Louisiana—and making payment of any wages subject to state income tax—must withhold tax according to the tables or computational methods prescribed by the Louisiana Department of Revenue. The primary statutory authority remains La. R.S. 47:112, which establishes the employer's duty to deduct and withhold tax from employee compensation.

2026 Standard Deduction Update — Emergency Rule and RIB 26-005 Effective January 1, 2026, Louisiana's standard deduction amounts used in employer withholding calculations have been adjusted for inflation based on CPI-U data. The new amounts are $12,875 for single or married-separate filers and $25,750 for married-joint, qualified surviving spouse, and head-of-household statuses. This change was implemented by an emergency amendment to LAC 61:I.1501 and communicated in Revenue Information Bulletin 26-005, in accordance with R.S. 47:294. Employers must use these revised standard deduction values in calculating state income tax withholding for payroll periods beginning on or after January 1, 2026.

Who is considered an employer. Louisiana defines "employer" to include any person or entity required under federal law to withhold federal income tax from the payment of wages to an employee. This includes corporations, partnerships, individuals, estates, trusts, and any organization paying wages for services performed within the state. It does not matter whether the employer is domiciled or headquartered in Louisiana as long as services are performed in the state.

Mobile workforce exemption (nonresident withholding threshold). Louisiana provides a specific statutory exemption for employers with nonresident employees performing services in Louisiana. Under La. R.S. 47:112.2, employers are not required to withhold Louisiana income tax for a nonresident individual if the employee is present and performing employment duties in the state for 30 or fewer days during the calendar year. If an employee exceeds this 30-day threshold, the employer must begin withholding tax for all wages paid for services performed in Louisiana, retroactive to the first day of presence. The exemption does not apply if the nonresident employee is a professional athlete, entertainer, or public figure.

Employer liability and penalties. If an employer fails to withhold or remit the required tax, the employer is held personally liable for the uncollected tax, plus applicable interest and penalties. This liability is established under La. R.S. 47:113.

Claiming exemptions. Employees may claim exemption from withholding or request adjustment based on personal tax circumstances by submitting an exemption certificate (Form L-4) to the employer. Employers must honor a properly executed exemption certificate but remain responsible for compliance with statutory and regulatory requirements.

Source: La. R.S. 47:112; La. R.S. 47:112.2; La. R.S. 47:113; LAC 61:I.1501 Emergency Rule Jan 2026; RIB 26-005

Louisiana provides specific exemptions and exclusions for various types of retirement income under its personal income tax code, affecting both public and private retirement benefits. Practitioners should be mindful of the legal distinctions in type and source, as well as recent statutory amendments.

Exclusion for Social Security and federal retirement benefits All Social Security benefits are fully exempt from Louisiana state personal income tax, regardless of taxpayer age or income. In addition, retirement benefits paid by the United States government—including federal civil service retirement systems, U.S. Armed Forces retirement, and benefits under the Railroad Retirement Act—are excluded in full from taxable income. Survivors' benefits and disability retirement income under these systems also qualify for the full exclusion. The exclusion applies even if the taxpayer also receives other taxable retirement distributions.

Exclusions for Louisiana public retirement system benefits Louisiana law provides a full exclusion for retirement income from the following Louisiana public retirement systems:

• Louisiana State Employees’ Retirement System (LASERS)
• Teachers' Retirement System of Louisiana (TRSL)
• Louisiana School Employees’ Retirement System
• State Police Pension and Retirement System
• Any other public retirement system or fund maintained by the state or political subdivisions (including parishes, cities, and local school boards)

These benefits are not subject to Louisiana income tax. See R.S. 47:44.2(A). The exclusion does not apply to distributions from private pension or retirement accounts, even if the taxpayer is a retired public employee, unless the distribution is from one of the exempt retirement systems above.

Exclusion for other retirement income (private and non-exempt public plans) For taxpayers aged 65 or older, Louisiana exempts up to $12,000 per year (for tax years beginning in 2025 and beyond) of annual retirement income not otherwise excluded. This applies to private company pensions, IRAs, 401(k)s, annuities, and public retirement systems not otherwise excluded by statute. The exemption is per person, not per return: a married couple can exclude up to $24,000 if both have qualifying retirement income. Any amount in excess of the statutory cap is included in taxable income. Beginning January 1, 2026, the $12,000 exemption will be indexed annually for inflation based on the Consumer Price Index. R.S. 47:44.1.

Retirement income from other states' public retirement systems Louisiana does not provide a full personal income tax exemption for retirement income received by a Louisiana resident from another state’s public retirement system (such as a Texas or Mississippi public employees’ or teachers’ pension). Louisiana’s full exclusions under La. R.S. 47:44.2 apply only to retirement benefits paid by the United States, Social Security, or public retirement systems established by Louisiana or its political subdivisions. There is no statutory exclusion for retirement income received from other states’ or their local governments’ retirement systems. Such income is treated as ordinary retirement or pension income: for residents age 65 or older, up to $12,000 per year (as indexed for inflation) per person may be excluded under the general retirement income exemption; any excess is taxable. If the recipient is under age 65, no exclusion applies. The Department of Revenue’s published FAQ and "Retirement One Pager" confirm that only federal, Social Security, and Louisiana public systems receive unlimited exemption—out-of-state public pensions do not.

Limitations and special rules

• Only the recipient of the retirement or pension income may claim the exemption; a beneficiary may not claim the exemption unless they are the actual retiree or their survivor. (LAC 61:I.1311)
• Taxpayers may not "stack" exemptions—amounts excluded under R.S. 47:44.2 (e.g., Social Security or LASERS) do not count against the $12,000 retirement income exemption limit.
• Disability income paid under qualifying pensions is generally treated the same as retirement income if the plan is otherwise eligible.

References and recent changes Act 11 of the 2024 Third Extraordinary Session increased the annual per-person exemption to $12,000 for tax years beginning in 2025, with inflation adjustment beginning in 2026. The exclusion for Social Security and the specified public retirement systems is unchanged and remains uncapped.

Source: La. R.S. 47:44.1; La. R.S. 47:44.2; LAC 61:I.1311; Louisiana Department of Revenue – Individual Income Tax FAQ: Retirement System Benefit Exclusion List; Louisiana Department of Revenue – Retirement One Pager