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 transitioned from progressive brackets to a single flat rate under 2024 tax reform legislation.
Louisiana Tax Calculator Examples (Illustrative)
Example 1: $75,000 Single Filer
| Component | Calculation |
|---|---|
| Gross income | $75,000 |
| Less: Standard deduction (illustrative, using federal-conforming starting point) | -$16,100 |
| Less: Personal exemption | -$4,500 |
| Taxable income | ~$54,400 |
| Louisiana tax (3%) | $1,632 |
| Effective rate | ~2.18% |
Louisiana’s actual calculation starts from federal AGI with state-specific modifications — confirm exact mechanics with the Louisiana Department of Revenue, as this is a simplified illustration.
Example 2: $150,000 Married Filing Jointly
| Component | Calculation |
|---|---|
| Gross income | $150,000 |
| Less: Standard deduction (illustrative) | -$32,200 |
| Less: Personal exemptions | -$9,000 |
| Taxable income | ~$108,800 |
| Louisiana tax (3%) | $3,264 |
| Effective rate | ~2.18% |
Simplified; actual calculation may vary — confirm with the Louisiana Department of Revenue.
Louisiana Deductions & Exemptions
Standard Deduction
Louisiana allows either:
- Federal adjusted gross income as starting point (with modifications)
- OR itemized deductions
Personal Exemptions (confirm current amounts)
| Exemption Type | Amount (confirm current figure) |
|---|---|
| Single/Married filing separately | ~$4,500 |
| Married filing jointly | ~$9,000 |
| Dependent | ~$1,000 |
| 65+ | Additional amount (confirm current figure) |
| Blind | Additional amount (confirm current figure) |
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, if applicable — many LA state/teacher pensions have broader exemptions; confirm current rules) |
| 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 | 4.0% (on income above $10,000; cut from 4.4% for 2026) |
| Arkansas | 3.7% (cut from 3.9% in May 2026) |
| Louisiana | 3% (flat) |
Louisiana has the lowest rate among neighbors with an 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’s 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%
Louisiana has very high combined sales tax rates in many parishes — historically among the highest in the nation.
Louisiana Property Tax
Confirm the current average effective property tax rate and homestead exemption amount with the Louisiana Department of Revenue or Tax Foundation, as these were not independently re-verified this session. Louisiana property taxes have historically been below the national average, with a strong homestead exemption.
Tips to Reduce Louisiana Taxes
- Claim personal exemptions — confirm current amounts
- Retirement exclusion — up to $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 parishes — among the highest in the nation. The late May 15 filing deadline gives extra time for residents.
For a side-by-side comparison of every state’s income tax rates, see state income tax rates by state 2026 and best and worst states for taxes 2026. Federal income tax applies on top of state taxes — see 2026 federal income tax brackets to calculate your combined liability.
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