Louisiana individual income tax
Louisiana's individual income tax applies to both residents and nonresidents of the state. The tax is calculated based on an individual's federal-adjusted gross income and has varying rates, from 1.85% to 4.25%.
May 15
Return due in 2023
4.25%
Top marginal tax rate
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Pay income tax online
Visit the official state government’s website to pay individual income tax online.
Visit LouisianaDOR
What is Louisiana income tax?
Individual income tax
Individual income tax is a type of direct tax levied by Louisiana on individuals that meet the taxable criteria.
Deadline
Payments and returns must be made by May 15th of the subsequent year. For those on a fiscal year schedule, due on the 15th day of the fifth month after the fiscal year ends.
Taxable incomes
Louisiana taxes incomes from wages, dividends, interests and capital gains.
Tax brackets
Louisiana has 3 individual income tax brackets from 1.85% to 4.25%.
Deductions
In Louisiana, the combined personal and standard deduction for all filing status is $4,500.
2022 tax rates
The following is the list of income tax rates for the tax year of 2022
| Louisiana taxable income | Tax rate |
|---|---|
| $0 - $12,500 | 1.85% |
| $12,500 - $50,000 | 3.5% |
| $50,000+ | 4.25% |
Residency
Residency in Louisiana refers to an individual's permanent home or place of residence in the state.
Louisiana resident
A Louisiana resident is someone who is domiciled in Louisiana, or who maintains a permanent place of residence in the state for more than 6 months.
Residents that earn income outside Louisiana and are taxed for the same by that state can claim credit. However, Louisiana mandates you to declare all your incomes.
Louisiana part-year resident
A Louisiana Part-Year Resident is someone who moved into or out of the state during the tax year.
Income earned while the individual was a resident of Louisiana is subject to state taxes.
If the same income is also taxed by the state where the individual previously lived, the individual may be able to claim a credit on their Louisiana state tax return for taxes paid to the other state.
Louisiana non-resident
A Louisiana Nonresident is someone who does not have a permanent residence in the state.
Nonresidents who receive income from Louisiana sources are required to pay Louisiana taxes.
Individual income tax
The State of Louisiana requires you to pay taxes if you are a resident (regardless of the whether they were earned within the state or not) or a non-resident that earns income from Louisiana
Types of taxable incomes
The income types on which tax is levied are:
In Louisiana, all types of income are generally subject to personal income tax unless they are specifically exempt by state law. This includes, but is not limited to, wages and salary, dividends, capital gains, royalties, and other types of income.
File return
To file a tax return in Louisiana, taxpayers must complete and submit a tax return form. The tax return form requires taxpayers to report their taxable income and any credits or deductions they are eligible to claim. Taxpayers must also calculate their tax liability and pay any taxes owed by the due date.
Payments and returns must be made by May 15th of the subsequent year. For those on a fiscal year schedule, payments and returns are due on the 15th day of the fifth month after the fiscal year ends.
Louisiana allows automatic 6-months extension of filing returns. This doesn't extend the deadline for payment of taxes.
Due
quarterly or annually
Pay taxes
Taxes in Louisiana are due by 15 May, 2023. Go to the official Louisiana Department of Revenue website.
Residents in Louisiana have to pay quarterly estimated taxes if their tax liability after credits and witholding is more than $1,000 for single filers and $2,000 for joint filers.
Type of tax
graduated tax
Due
quarterly or annually
Deductions
Tax deductions are a reduction in the amount of income that is subject to taxation. It allows taxpayers to lower the amount of taxable income they have, which in turn reduces the amount of tax they owe. Tax deductions are available for a wide range of expenses, such as charitable donations, mortgage interest, medical expenses, and business expenses.
Credits
A tax credit allows taxpayers to reduce the amount of taxes they are required to pay. This is different from a tax deduction, which reduces the amount of income that is subject to taxation. Tax credits are applied directly to the tax liability, while deductions are applied to the taxable income.
Exclusions
Tax exclusions are an amount of money or income that is not subject to taxation. This means that taxpayers do not have to pay taxes on this income.
Frequently asked questions
Business entities in Louisiana
There are several business entities in Louisiana
Louisiana LLC
Page sponsorWhy we like StartGlobal?
My genuine thoughts
Willy Justin
Founder, Statepedia
StartGlobal: Legal + Taxes + Bookkeeping for solopreneurs
Product
For small businesses, managing taxes, accounting and everything legal is just a pain. Nobody wants to do it, but they have to. Instead of working with CPAs, attorneys and others separately, Start brings all of them under a single subscription. It’s just smooth.
Team
I know the team behind StartGlobal very well. It’s a very hardworking group of individuals who are genuinely passionate about small businesses. They are backed by successful founders like Balaji Srinivasan, Biz Stone(Twitter) and others.
Price
Getting a CPA or attorney is a matter of thousands of dollars. It’s just unfair to pay so much when you’re a small business. Start has a single subscription that covers it all. It is a definite money saver.
$599 one-time