Louisiana adopted a flat 3% income tax in 2025 — replacing a progressive system and adding one of the most generous standard deductions of any income-tax state.
Louisiana replaced its progressive bracket system (1.85%/3.5%/4.25%) with a flat 3% rate and a generous standard deduction of $12,500 (single) / $25,000 (married) effective January 2025. Social Security and military retirement pay are fully exempt. No Louisiana parish charges a local income tax on wages.
Louisiana made one of the most significant income tax changes of any state in 2024. Passed in a special legislative session in November 2024 and effective January 2025, Louisiana replaced its three-bracket progressive system (top rate 4.25%) with a flat 3% rate and a new standard deduction of $12,500 for single filers and $25,000 for married couples. The practical result: a single filer earning $55,000 now pays Louisiana income tax only on $42,500 of it — and at 3%, that's $1,275. Under the old system, the same filer owed closer to $1,800.
The trade-off for the low income tax is among the highest sales tax burdens in the nation. Louisiana's combined state and local (parish) sales tax averages approximately 9.55%, with New Orleans and Jefferson Parish running even higher. Louisiana has historically relied on consumption taxes — sales tax, hotel tax, alcohol tax, and gambling revenue — more than income taxes to fund the state. The 2024 reform continued this philosophy: income taxes down, sales tax structure maintained. Workers who spend a large share of their take-home on taxable purchases should factor this into the total picture.
Louisiana has no city-level income taxes anywhere in the state. New Orleans, Baton Rouge, Shreveport, and Lafayette workers pay only the flat 3% state rate on income above the standard deduction. No parish income tax is added. This is a meaningful difference from New York City (which adds ~3.9%), Philadelphia (3.75%), or Louisville (1.25%). The oil and gas workers, medical professionals, and hospitality industry workers who dominate Louisiana's economy all benefit from this single-tier simplicity.
Louisiana exempts military retirement pay and Social Security benefits from state income tax. For the large military communities around Fort Johnson (formerly Fort Polk, near Leesville) and Barksdale AFB (Bossier City), a retired officer or senior NCO receiving $60,000 in military pension pays zero Louisiana state income tax on that income. Combined with the low 3% rate on working income, Louisiana has become more competitive for retirement planning than it was under the previous 4.25% top rate.
Estimates only. LA flat rate: 3%. Standard deduction: $12,500 (single) / $25,000 (married). Consult a tax professional for advice.
| Gross Pay (this check) | $0.00 |
| Federal Income Tax | −$0.00 |
| Louisiana State Tax (3%) | −$0.00 |
| Social Security (6.2%) | −$0.00 |
| Medicare (1.45%) | −$0.00 |
| Net Take-Home Pay | $0.00 |
Louisiana has a flat 3% state income tax rate for 2026. This replaced the previous progressive system (1.85%/3.5%/4.25%) effective January 2025. The new standard deduction is $12,500 for single filers and $25,000 for married filing jointly — one of the most generous of any income-tax state. Income below the standard deduction is not taxed at all.
Louisiana workers pay: federal income tax (progressive brackets), Louisiana state income tax (3% flat on income above $12,500/$25,000), Social Security (6.2% up to $184,500), and Medicare (1.45%). No Louisiana parish charges a local income tax. New Orleans, Baton Rouge, and Shreveport workers pay only the state rate with no city surcharge.
The Louisiana Legislature passed sweeping income tax reform in a November 2024 special session, signed by Governor Jeff Landry. The goals were to simplify the tax code, reduce the top rate, and attract business and investment. The revenue offset came from maintaining Louisiana's existing high sales tax structure rather than cutting consumption taxes to fund the income tax reduction.
No. Louisiana fully exempts Social Security benefits from state income tax. Louisiana also exempts military retirement pay and some public employee pensions. For retirees, Louisiana's effective income tax burden is often close to zero, especially on typical retirement income sources. The remaining tax exposure is the 3% rate on working income above $12,500.
Texas and Florida have zero state income tax — a meaningful advantage over Louisiana's 3%. However, Louisiana's property taxes are significantly lower than Texas's (Louisiana has some of the lowest effective property tax rates in the country, while Texas property taxes are among the highest). For high earners or renters, the income tax difference matters more; for homeowners, the property tax offset can narrow the gap considerably.
On a $60,000 salary paid biweekly, Louisiana withholds approximately $62–$65 per paycheck in state income tax (3% on income above the $12,500 standard deduction, spread across 26 pay periods). On $90,000, it's approximately $95–$100 per paycheck. The flat rate and generous deduction make Louisiana state withholding relatively modest compared to most income-tax states.
Yes. The One Big Beautiful Bill (2026) exempts overtime premiums and tips from federal income tax only. Louisiana still taxes overtime and tip income at the 3% state rate. See our Overtime Tax Calculator for the combined federal savings and LA state picture.
No. No Louisiana parish (county equivalent) or city levies a local income tax on wages. This distinguishes Louisiana from Ohio (where Columbus, Cleveland, and Cincinnati each add 2.5%), Kentucky (Louisville adds 1.25%), and many other states. Your Louisiana income tax burden is entirely the 3% state flat rate — no parish surcharge is added on top.