At $100,000 gross income, a Louisiana single filer pays approximately $2,614 in state income tax — an effective rate of 2.61% (using a $12,875 standard deduction, the amount LDR used for 2026 withholding). Louisiana switched to a flat 3% income tax rate on January 1, 2025 (enacted by Act 11 of the 2024 Third Extraordinary Session), 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 Act 11 of the 2024 Third Extraordinary Session)
Standard Deduction
2026: about $12,875 single, $25,750 married filing jointly or head of household (the amount the Louisiana Department of Revenue used for its 2026 withholding tables; the final official 2026 figure may differ slightly); 2025: $12,500 / $25,000. The additional $1,000 deductions for dependents, age 65+ and blind taxpayers were repealed — Louisiana uses a standard deduction, not a personal exemption
Federal Tax Deductibility
Not deductible — Louisiana does not allow a deduction for federal income taxes paid; the IT-540 starts from federal AGI.
Social Security fully exempt; Louisiana state/local government pensions fully exempt; federal and military pensions fully exempt; private pension/IRA/401(k): taxable, except up to $12,000 per person is exempt at age 65+ (2025 amount; check the 2026 return instructions for the 2026 amount)
Property Tax
~0.55% effective average — among the lowest in the US; $75,000 (market value) homestead exemption on primary residences reduces the burden further for homeowners
Sales Tax
5% state rate (since January 1, 2025) + substantial parish and local additions — among the highest combined rates nationally
Introduction
Louisiana made a landmark shift in its income tax structure effective January 1, 2025: Act 11 of the 2024 Third Extraordinary Session replaced the state's long-standing graduated income tax brackets (1.85%–4.25%) with a single flat rate of 3%. Act 11 also raised the standard deduction from $4,500 to $12,500 (2025) and repealed the additional exemption deductions for dependents, age 65+ and blind taxpayers.
The result for 2026 is one of the simpler state income tax systems in the South: a flat 3% on all Louisiana taxable income above the standard deduction (about $12,875 for a single filer, the amount the Louisiana Department of Revenue used for its 2026 withholding tables; the final official 2026 figure may differ slightly). At $100,000 income, a Louisiana single filer pays approximately $2,614 in state tax — an effective rate of 2.61%, making Louisiana competitive with flat-rate states like Indiana (2.95%) and Iowa (3.8%).
Section 01
Louisiana's Flat 3% Income Tax Rate for 2026
Louisiana's income tax system changed fundamentally on January 1, 2025. Act 11 of the 2024 Third Extraordinary Session replaced the state's graduated brackets — which had ranged from 1.85% to 4.25% — with a single flat rate of 3%.
For 2026, every dollar of Louisiana taxable income above the standard deduction 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
Standard Deduction
Louisiana Taxable Income
Tax (3%)
Effective Rate
$50,000
$12,875
$37,125
$1,114
2.23%
$75,000
$12,875
$62,125
$1,864
2.49%
$100,000
$12,875
$87,125
$2,614
2.61%
$150,000
$12,875
$137,125
$4,114
2.74%
$250,000
$12,875
$237,125
$7,114
2.85%
Married filing jointly filers use a $25,750 standard deduction (about; the amount the Louisiana Department of Revenue used for its 2026 withholding tables; the final official 2026 figure may differ slightly) — so a couple earning $150,000 has $124,250 taxable at 3% = $3,728 Louisiana tax.
Section 02
Standard Deduction System (No Personal Exemption)
Louisiana uses a standard deduction rather than personal exemptions. It was $12,500 (single) and $25,000 (married filing jointly) for 2025; LDR used $12,875 (single) and $25,750 (married filing jointly) for its 2026 withholding tables (the final official 2026 figures may differ slightly). Act 11 repealed the additional $1,000 deductions for dependents, taxpayers age 65+ and blind taxpayers.
Examples (amounts LDR used for 2026 withholding):
Single filer: $12,875 deduction
Married filing jointly: $25,750 deduction
At $100,000 income, a single filer's $12,875 deduction reduces Louisiana taxable income to $87,125, saving $386 in tax compared to if no deduction existed.
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 after the standard deduction (up to $12,000 per person is exempt at age 65+, 2025 amount)
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: ~$2,614 state income tax + ~0.55% property tax
Texas: $0 state income tax + ~1.40% property tax
Florida: $0 state income tax + ~0.78% property tax
Texas's higher property taxes largely 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 ~$4,200 — a $2,550 annual difference that roughly matches Louisiana's $2,614 income tax at $100,000 income, making the two states close to a wash for a typical $300,000 homeowner at that income level. At higher incomes, the income tax gap widens while the fixed property tax difference doesn't grow, tilting the overall advantage toward Texas.
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 (~1.88%) or Illinois (~1.88%).
Louisiana's homestead exemption is particularly generous: the first $75,000 of a primary residence's market value ($7,500 of assessed value) is exempt from property tax under the state homestead exemption (certain levies may be excluded). 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 state rate has been 5% since January 1, 2025 (up from 4.45%), and parish and municipal taxes are added on top, pushing combined rates to among the highest in the nation. Combined rates vary by location, so check the rate for your parish and city.
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 was Act 11 of the 2024 Third Extraordinary Session, enacted by the Legislature. 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.
Standard deduction raised, other exemptions repealed: The standard deduction rose from $4,500 to $12,500 for single filers (and from $9,000 to $25,000 for joint filers), and the additional exemption deductions for dependents, age 65+ and blind taxpayers were repealed.
The net effect depends on income and household: the flat 3% rate and larger standard deduction lower tax for many filers, while the repealed dependent and age-based deductions raise it for some.
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 standard deduction (about $12,875 for single filers, the amount LDR used for 2026 withholding). This flat rate replaced the former graduated system (1.85%–4.25%) effective January 1, 2025, under Act 11 of the 2024 Third Extraordinary Session. At $100,000 income, the effective rate is approximately 2.61%.
Q
Did Louisiana eliminate the federal income tax deduction?
Federal income tax paid is not deductible on Louisiana's return: the IT-540 starts from federal AGI and has no deduction for federal tax paid. Act 11 (effective January 1, 2025) set the flat 3% rate, raised the standard deduction, and repealed the additional dependent, age 65+ and blind deductions.
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 after the standard deduction (up to $12,000 per person is exempt at age 65+, 2025 amount).
Q
How does Louisiana's 3% flat tax compare to Texas's no income tax?
At $100,000 income, Louisiana residents pay ~$2,614 in state income tax versus $0 in Texas. However, Texas's effective property tax rate (~1.40%) is roughly two and a half times Louisiana's (~0.55%). On a $300,000 home, Texas residents pay ~$4,200/year in property taxes versus ~$1,650 in Louisiana — a $2,550 annual difference that roughly offsets Louisiana's income tax at $100,000 income, making the two states close to comparable at that income level. At higher incomes, the income tax gap widens while the property tax difference stays fixed to home value, so the comparison depends heavily on home value and income.
Q
What is Louisiana's personal exemption for 2026?
Louisiana no longer has a personal exemption. For 2026 LDR used a standard deduction of $12,875 for single filers and $25,750 for married filing jointly in its withholding tables (the final official figures may differ slightly; $12,500 and $25,000 in 2025), deducted before the 3% rate applies. The additional $1,000 deductions for dependents, age 65+ and blind taxpayers were repealed by Act 11.
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 of market value from property tax. 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 standard deduction rose from $4,500 to $12,500 (single) and the additional dependent, age 65+ and blind deductions were repealed. The net effect depends on income and household.
Q
How does Louisiana compare to Florida for retirees?
Florida has no state income tax (versus Louisiana's flat 3%) and a ~0.78% 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 Act 11 of the 2024 Third Extraordinary Session. Rates and deduction amounts are subject to legislative change. Consult a qualified tax professional for advice specific to your situation.