Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Louisiana state tax rates. Always consult a qualified tax professional.
Louisiana income tax overview
Louisiana made a major tax reform in 2025, replacing its previous progressive system (top rate 4.25%) with a flat 3% income tax rate starting in 2026. This makes Louisiana one of the more competitive states for income tax in the South. Louisiana also allows a deduction for federal income taxes paid (like Alabama and Missouri), further reducing the effective state tax rate. The state pairs this low income tax with a 4.45% state sales tax plus local additions. New Orleans and the surrounding parishes have significant local sales taxes. Louisiana's economy centers on petrochemicals, agriculture, tourism, and the Port of New Orleans.
2026 Louisiana income tax rates
Tax rate
Income range (single filer)
3% flat
All taxable income — 2026 (new flat rate)
Worked example: $75,000 salary in Louisiana
A $75,000 salary in Louisiana results in approximately $1,875 in state income tax (3% flat before federal deduction adjustment), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $54,807, or $2,108 bi-weekly.
Key facts: 3% flat rate from 2026 · Federal taxes partially deductible · Down from 4.25% top rate
Frequently asked questions — Louisiana income tax
Louisiana passed major tax reform legislation in 2025 that replaced the progressive system (with rates of 1.85%, 3.5%, and 4.25%) with a single flat 3% rate effective January 1, 2026. This was a significant reduction for middle and higher-income earners.
Yes. Louisiana allows a deduction for federal income taxes paid, which reduces your Louisiana taxable income. This effectively lowers your true Louisiana tax rate below 3% for most taxpayers.
No. Louisiana does not tax Social Security benefits.
No. Louisiana parishes and cities do not levy local income taxes. The local tax burden comes primarily through sales taxes.
Louisiana's 3% flat rate is now lower than Mississippi (4.7%), Alabama (5%), and Arkansas (4.4%), making it one of the most competitive income tax environments in the Gulf South region.