Key Tax Facts: Louisiana
- Louisiana filing deadline is May 15 for most filers
- Federal income taxes paid are deductible from Louisiana income
- Highest combined sales tax rate in the U.S. on average
- Significant exemptions for retirement income from government pensions
Estimate Your 2026 Federal and Louisiana State Income Tax
Louisiana State Income Tax Overview
Louisiana taxes income at a flat 3%. A comprehensive reform enacted in December 2024 took effect January 1, 2025, replacing three graduated brackets that topped out at 4.25% with a single rate. The same law swapped the old combined standard deduction and personal exemption for a standard deduction of $12,500 for single filers and $25,000 for married couples filing jointly, indexed for inflation beginning in 2026. Louisiana exempts most retirement income from state tax, including Social Security, teacher retirement, and military retirement pay. Note that Louisiana carries the highest average combined state and local sales tax rate in the country, which offsets some of the benefit of the low income tax rate.
What Is Different About Louisiana's Income Tax
Deductions and exemptions
Louisiana overhauled its income tax for 2025, replacing three graduated brackets with a single 3% rate and raising the standard deduction to $12,500 for single filers and $25,000 for joint filers, which eliminates state tax for many lower-income households. Itemized deductions are limited to excess medical expenses. The old deduction for federal income tax paid was repealed.
Credits worth knowing
Louisiana's earned income credit is 5% of the federal credit. Credits are also available for child care expenses, school readiness programs, taxes paid to other states, and certain school tuition and educational expenses.
Retirement, capital gains, and other income
Social Security is exempt, as are Louisiana state, teacher, and federal government pensions. Private pension, 401(k), and IRA income qualifies for an annual retirement income exemption of $12,000 per person for filers 65 and older. Military retirement pay is fully exempt. Capital gains are taxed at the flat rate, with an exclusion for gains on the sale of a Louisiana business.
Rules summarized from the Louisiana Department of Revenue guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Louisiana Income Tax Rate (2026) projected
Louisiana uses a flat income tax rate -- the same percentage applies to all taxable income regardless of how much you earn.
Source: Louisiana Department of Revenue
What a Louisiana Resident Actually Pays: A Worked Example
| Taxable Income | $65,000.00 |
| Louisiana Flat Rate | 3% |
| Estimated State Tax | $1950.00 |
| Effective Rate | 3% |
Where Louisiana Stands Among the 50 States
Louisiana's top rate of 3% ranks #39 of the 41 states that tax wages -- among the ten lowest of the states that levy the tax at all. The median top rate across those 41 states is 5.2%, so Louisiana is below the middle of the pack. It is one of 14 states with a single flat rate, so every taxable dollar is taxed at 3% and the effective rate never climbs with income the way it does in the 27 graduated-rate states.
On sales tax the picture is different: Louisiana's combined state and average local rate of 9.56% ranks #1 of 50, against a national median of 7.00%.
Louisiana State Tax at Five Income Levels (2026, single filer)
| Taxable income | Louisiana tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,200 | 3.00% | 3% |
| $65,000 | $1,950 | 3.00% | 3% |
| $100,000 | $3,000 | 3.00% | 3% |
| $150,000 | $4,500 | 3.00% | 3% |
| $250,000 | $7,500 | 3.00% | 3% |
Brackets applied directly to the taxable-income figure shown, before Louisiana-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Louisiana vs. Its Neighbors on $75,000 of Taxable Income
A Louisiana resident with $75,000 of taxable income pays about $2,250 in state income tax. Of Louisiana's 3 neighboring states, 1 would tax that income less and 2 would tax it more.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| Louisiana (you) | Flat | $2,250 | 3% | 9.56% |
| Texas | No income tax | $0 | None | 8.19% |
| Arkansas | Rate to 3.9% | $2,528 | 3.9% | 9.44% |
| Mississippi | Rate to 4.4% | $3,300 | 4.4% | 7.07% |
Frequently Asked Questions -- Louisiana Income Tax
Does Louisiana have a state income tax?
Yes. Louisiana imposes a state income tax with a flat rate of 3%. This is separate from your federal income tax obligation.
What is the Louisiana income tax rate for 2026?
Louisiana uses a flat income tax rate of 3% on all taxable income, regardless of income level or filing status.
Do I have to file a Louisiana state tax return?
Most full-year Louisiana residents with income above the state filing threshold must file a state return. Check the Louisiana Department of Revenue for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2026 brackets and standard deduction. The Louisiana figure applies the 2026 single-filer rate schedule to the same taxable income; it does not model Louisiana-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Louisiana Department of Revenue or a tax professional before filing.
How does Louisiana compare with nearby states?
On $75,000 of taxable income, Louisiana collects about $2,250. Texas collects $0, Arkansas collects $2,528, Mississippi collects $3,300. See the comparison table above.
Where does Louisiana rank on state income tax?
Louisiana's top rate of 3% ranks #39 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 9.56% ranks #1 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2026 federal income tax using the official IRS 2026 brackets, then applies the Louisiana rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Louisiana tax forms?
Official forms, instructions, and filing guidance are available at the Louisiana Department of Revenue.
What is the sales tax rate in Louisiana?
Louisiana's combined state and average local sales tax rate is 9.56%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Louisiana 2026 state taxes due?
2026 taxes are generally filed in 2027. The Louisiana filing deadline is May 15, 2027 -- note this differs from the federal deadline of April 15, 2027, so mark both dates.
Understanding Your Louisiana Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Louisiana state tax owed to the Louisiana Department of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of May 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Louisiana Bill
Pre-tax retirement contributions reduce your federal and Louisiana taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Louisiana-specific credits and deductions that don't exist at the federal level are listed at the Louisiana Department of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Louisiana's combined state-plus-average-local sales tax rate is 9.56%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Louisiana Department of Revenue or a qualified tax professional for guidance specific to your situation.