Louisiana has a 3% flat income tax rate for 2026 — one of the lowest among states with income tax.
Louisiana Income Tax Rate for 2026
| Tax Year | Rate |
|---|---|
| 2025+ | 3% (flat) |
Louisiana recently transitioned from progressive brackets to a single flat rate.
Louisiana Tax Calculator Examples
Example 1: $75,000 Single Filer
| Component | Calculation |
|---|---|
| Gross income | $75,000 |
| Less: Standard deduction | -$12,500* |
| Less: Personal exemption | -$4,500 |
| Taxable income | ~$58,000 |
| Louisiana tax (3%) | $1,740 |
| Effective rate | 2.32% |
*Federal standard deduction used as starting point
Example 2: $150,000 Married Filing Jointly
| Component | Calculation |
|---|---|
| Gross income | $150,000 |
| Less: Standard deduction | -$25,000* |
| Less: Personal exemptions | -$9,000 |
| Taxable income | ~$116,000 |
| Louisiana tax (3%) | $3,480 |
| Effective rate | 2.32% |
*Simplified; actual calculation may vary
Louisiana Deductions & Exemptions
Standard Deduction
Louisiana allows either:
- Federal adjusted gross income as starting point (with modifications)
- OR itemized deductions
Personal Exemptions (2026)
| Exemption Type | Amount |
|---|---|
| Single/Married filing separately | $4,500 |
| Married filing jointly | $9,000 |
| Dependent | $1,000 |
| 65+ | Additional amount |
| Blind | Additional amount |
Louisiana Retirement Income
Social Security
Fully exempt — Louisiana does not tax Social Security benefits.
Retirement Income Exclusion
| Exclusion | Amount |
|---|---|
| Annual exclusion | Up to $6,000 |
| Age requirement | 65+ |
| Applies to | Pensions, 401(k), IRA |
Pension Treatment
| Pension Type | Tax Treatment |
|---|---|
| Louisiana state pensions | Exempt (up to exclusion) |
| Federal pensions | Exempt (up to exclusion) |
| Military retirement | Exempt (up to exclusion) |
| Private pensions | Exempt (up to exclusion) |
What Income is Taxed in Louisiana?
Taxed:
- Wages and salaries
- Self-employment income
- Interest and dividends
- Capital gains (taxed as ordinary income)
- Retirement income (above $6,000 exclusion)
Not taxed or exempt:
- Social Security — Fully exempt
- First $6,000 of retirement income (65+)
- Louisiana municipal bond interest
Louisiana vs. Neighboring States
| State | Top Income Tax Rate |
|---|---|
| Texas | 0% (no income tax) |
| Mississippi | 4.7% |
| Arkansas | 4.4% |
| Louisiana | 3% (flat) |
Louisiana has the lowest rate among neighbors with income tax.
Filing Louisiana State Taxes
| Filing Requirement | Details |
|---|---|
| Form | IT-540 (residents) |
| Due date | May 15 |
| E-file | Yes, through Louisiana File Online |
| Extension | Automatic with federal |
Note: Louisiana due date is May 15, not April 15.
Louisiana Sales Tax
- State rate: 4.45%
- Local rates: 0-7% additional
- Total range: 4.45% - 11.45%
- Some areas have highest combined rates in nation
Louisiana has very high combined sales tax rates in many parishes.
Louisiana Property Tax
- Average effective rate: ~0.56% (below national average)
- Strong homestead exemption (first $75,000 of value)
- Favorable for homeowners
Tips to Reduce Louisiana Taxes
- Claim personal exemptions — $4,500-$9,000
- Retirement exclusion — $6,000 at 65+
- Social Security — Already exempt
- Homestead exemption — Property tax savings
- Flat rate — No bracket management needed
Louisiana Tax Authority
Louisiana Department of Revenue
- Website: revenue.louisiana.gov
- Phone: 225-219-0102
- For refunds, returns, and questions
Bottom Line
Louisiana has a 3% flat income tax — one of the lowest rates among states with income tax. Combined with full Social Security exemption and a $6,000 retirement income exclusion for those 65+, Louisiana is moderately tax-friendly for retirees. However, sales taxes can reach 11%+ in some areas — among the highest in the nation. Property taxes are below average with a strong homestead exemption. The late May 15 filing deadline gives extra time for residents.
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