At $100,000 gross income, a Louisiana single filer pays approximately $2,625 in state income tax — an effective rate of 2.63%. Louisiana switched to a flat 3% income tax rate on January 1, 2025 (voters approved Constitutional Amendment 2 in November 2024), replacing the old 1.85%–4.25% graduated system. Social Security and most government pensions are fully exempt.
At a glance
Key Facts
State Income Tax Rate (2026)
Flat 3% on all Louisiana taxable income — in effect since January 1, 2025 (replaced the old 1.85%–4.25% graduated brackets via Constitutional Amendment 2)
Personal Exemption
$12,500 per taxpayer (single: $12,500; MFJ: $25,000); $1,000 per dependent — Louisiana uses an exemption rather than a standard deduction
Federal Tax Deductibility
Eliminated as of January 1, 2025 — Louisiana no longer allows deduction of federal income taxes paid. This provision was abolished alongside the switch to the flat 3% rate.
Social Security fully exempt; Louisiana state/local government pensions fully exempt; federal and military pensions fully exempt; private pension/IRA/401(k): taxable (no general exemption under flat system)
Property Tax
~0.55% effective average — among the lowest in the US; $75,000 homestead exemption on primary residences reduces effective burden further for homeowners
Sales Tax
4.45% state rate + substantial local additions; New Orleans ~9.45%, Baton Rouge ~9.95% — among the highest combined rates nationally
Introduction
Louisiana made a landmark shift in its income tax structure effective January 1, 2025: voters approved Constitutional Amendment 2 in November 2024, replacing the state's long-standing graduated income tax brackets (1.85%–4.25%) with a single flat rate of 3%. At the same time, Louisiana eliminated its unique federal income tax deductibility provision — a system that had existed virtually nowhere else in the United States.
The result for 2026 is one of the simpler state income tax systems in the South: a flat 3% on all Louisiana taxable income, with a $12,500 personal exemption per taxpayer. At $100,000 income, a Louisiana single filer pays approximately $2,625 in state tax — an effective rate of 2.63%, making Louisiana competitive with flat-rate states like Indiana (3.05%) and Iowa (3.9%).
Section 01
Louisiana's Flat 3% Income Tax Rate for 2026
Louisiana's income tax system changed fundamentally on January 1, 2025. Voters approved Constitutional Amendment 2 in November 2024, replacing the state's graduated brackets — which had ranged from 1.85% to 4.25% — with a single flat rate of 3%. The same amendment abolished Louisiana's unique federal income tax deductibility provision.
For 2026, every dollar of Louisiana taxable income above the personal exemption is taxed at exactly 3%, regardless of total income. A filer earning $50,000 and one earning $500,000 both pay the same percentage on their Louisiana taxable income.
Income
Personal Exemption
Louisiana Taxable Income
Tax (3%)
Effective Rate
$50,000
$12,500
$37,500
$1,125
2.25%
$75,000
$12,500
$62,500
$1,875
2.50%
$100,000
$12,500
$87,500
$2,625
2.63%
$150,000
$12,500
$137,500
$4,125
2.75%
$250,000
$12,500
$237,500
$7,125
2.85%
Married filing jointly filers use a $25,000 exemption — so a couple earning $150,000 has $125,000 taxable at 3% = $3,750 Louisiana tax.
Section 02
Personal Exemption System (No Standard Deduction)
Louisiana does not use a standard deduction like most states. Instead, taxpayers claim a personal exemption of $12,500 per taxpayer and $1,000 per dependent. This exemption reduces Louisiana taxable income before the 3% rate applies.
Examples of exemption amounts:
Single filer, no dependents: $12,500 exemption
Married filing jointly, no dependents: $25,000 exemption
MFJ with 2 children: $25,000 + $2,000 = $27,000 exemption
At $100,000 income, a single filer's $12,500 exemption reduces Louisiana taxable income to $87,500, saving $375 in tax compared to if no exemption existed. Larger families benefit proportionally more from the dependent exemptions.
Section 03
Social Security and Retirement Income in Louisiana
Louisiana is one of the most retirement-friendly states in the South for government retirees:
Social Security: fully exempt from Louisiana state income tax
Louisiana state and local government pensions: fully exempt
Federal civil service retirement (CSRS/FERS): fully exempt
Military retirement pay: fully exempt
Private pensions, 401(k), IRA withdrawals: taxable at the flat 3% rate (minus the $12,500 personal exemption)
A retired military officer receiving $60,000/year in military pension plus $20,000 Social Security in Louisiana pays $0 in Louisiana state income tax on both income streams. This is a compelling benefit for military retirees compared to states that fully tax all retirement income.
Section 04
Louisiana vs Texas and Florida — Gulf Coast Comparison
Louisiana residents often compare their tax situation to neighboring Texas (no state income tax) and Florida (no state income tax). At $100,000 income:
Louisiana: ~$2,625 state income tax + ~$0.55% property tax
Texas: $0 state income tax + ~1.63% property tax
Florida: $0 state income tax + ~0.89% property tax
Texas's high property taxes substantially offset its income tax advantage. A Louisiana homeowner with a $300,000 home pays approximately $1,650/year in property taxes; a Texas homeowner pays ~$4,890 — a $3,240 annual difference that more than offsets Louisiana's $2,625 income tax at $100,000 income. The calculation flips for higher incomes, where the income tax gap widens and property tax savings become relatively smaller.
Section 05
Louisiana Property Tax — Low Rates and the $75,000 Homestead Exemption
Louisiana's effective property tax rate averages approximately 0.55% — one of the five lowest in the US. On a $300,000 home, that's roughly $1,650/year. This is dramatically lower than the national average (~1.1%) and a fraction of high-property-tax states like New Jersey (~2.47%) or Illinois (~2.23%).
Louisiana's homestead exemption is particularly generous: the first $75,000 of a primary residence's assessed value is exempt from all parish and city property taxes (except certain special district levies). For owners of homes valued below $200,000, this exemption can reduce the effective property tax rate to nearly zero on the exempt portion.
Section 06
Sales Tax — Louisiana's Higher Burden
What Louisiana saves on income and property taxes, it partially collects through sales taxes. Louisiana's 4.45% state rate is supplemented by parish (county) and municipal taxes that push combined rates to among the highest in the nation:
New Orleans: ~9.45% combined
Baton Rouge: ~9.95% combined
Shreveport: ~9.05% combined
Lafayette: ~9.45% combined
On $40,000 in annual consumer spending, a Louisiana resident pays approximately $3,780 in sales taxes. This represents a meaningful portion of total state and local tax burden, particularly for lower-income households where a larger share of income goes toward taxable purchases.
Section 07
The 2025 Reform — What Changed and Why
Louisiana's switch to a flat 3% rate was not inevitable. The state had debated tax simplification for years. The key change came when voters approved Constitutional Amendment 2 in November 2024 with a substantial majority. Two things happened simultaneously:
Flat 3% replaces graduated brackets: The old 1.85%/3.5%/4.25% system was replaced with a uniform 3% on all Louisiana taxable income.
Federal income tax deductibility eliminated: Louisiana was the last major state to allow deduction of federal income taxes on state returns. This provision was abolished — simplifying the system but removing a benefit that disproportionately helped higher-income earners (who paid more in federal taxes and thus got larger state deductions).
The net effect: lower-income and middle-income taxpayers in the $50,000–$150,000 range generally pay less Louisiana tax under the flat 3% system than they did under the old graduated system with the federal deduction. Very high earners (above ~$400,000) may pay slightly more under the flat system, depending on their federal tax bill.
Navigating state income tax — especially if you are relocating, have multi-state income, or are planning retirement — benefits from professional CPA guidance. TaxHub connects you with licensed tax professionals.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Louisiana's income tax rate for 2026 is a flat 3% on all Louisiana taxable income above the personal exemption ($12,500 for single filers). This flat rate replaced the former graduated system (1.85%–4.25%) effective January 1, 2025, after voters approved Constitutional Amendment 2 in November 2024. At $100,000 income, the effective rate is approximately 2.63%.
Q
Did Louisiana eliminate the federal income tax deduction?
Yes. Louisiana eliminated its federal income tax deductibility provision effective January 1, 2025 — the same date the flat 3% rate took effect. Under the old system, Louisiana taxpayers could deduct their entire federal income tax bill from state taxable income. This provision was abolished alongside the switch to the flat rate. Louisiana is now a standard state where federal taxes are not deductible on state returns.
Q
Does Louisiana tax Social Security benefits?
No — Social Security benefits are fully exempt from Louisiana state income tax. Louisiana also fully exempts state and local government pensions, federal civil service retirement income, and military retirement pay. Private pension, 401(k), and IRA withdrawals are taxable at the flat 3% rate (minus the personal exemption).
Q
How does Louisiana's 3% flat tax compare to Texas's no income tax?
At $100,000 income, Louisiana residents pay ~$2,625 in state income tax versus $0 in Texas. However, Texas's effective property tax rate (~1.63%) is roughly three times Louisiana's (~0.55%). On a $300,000 home, Texas residents pay ~$4,890/year in property taxes versus ~$1,650 in Louisiana — a $3,240 annual difference that more than offsets Louisiana's income tax at many income levels. The comparison depends heavily on home value and income.
Q
What is Louisiana's personal exemption for 2026?
Louisiana provides a personal exemption of $12,500 per taxpayer for 2026. Single filers deduct $12,500 from their income before the 3% rate applies; married filing jointly deduct $25,000. Each dependent adds $1,000 to the total exemption. Louisiana does not have a standard deduction — the exemption system serves this function.
Q
Is Louisiana a good state for military retirees?
Yes — Louisiana is very military-friendly. Military retirement pay is fully exempt from Louisiana state income tax. Combined with the flat 3% rate on other income, the $75,000 homestead exemption on property taxes, and no state estate tax, Louisiana offers a competitive tax environment for retired military personnel. Neighboring Texas has zero income tax, but Louisiana's much lower property taxes make the total burden comparable for homeowners.
Q
What are Louisiana's property taxes?
Louisiana's effective property tax rate averages approximately 0.55% — one of the five lowest in the US. Louisiana also provides a $75,000 homestead exemption on primary residences, exempting that amount from all parish and city property taxes. On a $300,000 home with the homestead exemption, the taxable assessed value could be significantly reduced, making Louisiana's real-world property tax burden even lower than the rate suggests.
Q
What changed for Louisiana taxpayers in 2025?
Two major changes: (1) the graduated income tax brackets (1.85%, 3.5%, 4.25%) were replaced with a flat 3% rate; (2) the federal income tax deductibility provision was eliminated. For most middle-income taxpayers ($50,000–$150,000), the flat 3% system results in lower state taxes than the old system with the federal deduction. Higher earners who had large federal tax bills (and thus larger state deductions under the old system) may pay more under the flat rate.
Q
How does Louisiana compare to Florida for retirees?
Florida has no state income tax (versus Louisiana's flat 3%) and a ~0.89% property tax rate (versus Louisiana's ~0.55%). For retirees with significant taxable income, Florida's no-income-tax advantage grows with income. For retirees with primarily Social Security and government pension income (both fully exempt in Louisiana), the difference is minimal — both states effectively exempt these income streams. Louisiana's lower property taxes partially offset Florida's income tax advantage for homeowners.
Disclaimer:This guide is for educational purposes only and does not constitute tax or financial advice. Louisiana adopted a flat 3% income tax rate effective January 1, 2025, under Constitutional Amendment 2. Rates and exemption amounts are subject to legislative change. Consult a qualified tax professional for advice specific to your situation.