Louisiana Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)
⚠️Informational only — not legal or tax advice.
Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – May 2026
Last verified: February 19, 2026
Table of Contents
- Quick Reference
- Key Takeaways
- Quick Questions
- Louisiana Income Tax Rates and Brackets (2026)
- Standard Deduction and Exemptions
- Louisiana Income Tax Credits
- Statutory Authority
- Who Must File Louisiana Income Tax
- What Income Is Taxable in Louisiana
- Filing Deadlines
- Filing Options for Louisiana Income Tax
- Penalties and Interest
- Military Personnel
- Retirees
- Students
- Part-Year Residents
- Special Considerations for Remote Workers and Multi-State Taxation
- Tax Residency vs Domicile in Louisiana
- Documentation Commonly Requested in Residency Audits
- Common Tax Filing Situations
- Forms & Publications
- Information Verification Log
- Resources
- Where to Check for Updates
- Tax Glossary
- Update History
Quick Reference
Does Louisiana have income tax? Yes
Tax structure: Flat (as of Tax Year 2025)
Tax rate: 3% (flat rate — all filing statuses)
Standard deduction (Single / MFS / HOH): $12,500
Standard deduction (Married Filing Jointly / QSS): $25,000
Standard deduction (Age 65+): $25,000 per individual
Local income tax: No
Official source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Key Takeaways
- Residents: Louisiana residents pay income tax on income from all sources, regardless of where it was earned.
- Non-residents: Non-residents pay Louisiana income tax only on income sourced to Louisiana (wages earned in-state, Louisiana business income, Louisiana rental income, Louisiana gambling winnings, etc.).
- Tax rate: Louisiana moved to a flat 3% rate effective January 1, 2025. The former graduated bracket system (up to 4.25%) has been fully repealed.
- Filing deadline: May 15, 2026 (Louisiana’s deadline differs from the federal April 15 deadline).
- Local income tax: Louisiana does not permit local income taxes. Only state-level tax applies.
- Reciprocity: Louisiana does not have reciprocal agreements with other states.
- Primary forms: IT-540 (residents), IT-540B (nonresidents and part-year residents).
Quick Questions About Louisiana Income Tax
What is the Louisiana income tax rate for 2025?
Louisiana has a flat 3% income tax rate for Tax Year 2025. This rate applies to all filing statuses and all income levels. The former graduated rate structure (which went up to 4.25%) was repealed as part of Louisiana’s 2024 Third Extraordinary Session tax reform package, effective January 1, 2025.
Does Louisiana have state income tax?
Yes. Louisiana levies a state individual income tax on residents, part-year residents, and nonresidents earning income from Louisiana sources. However, numerous exemptions apply to retirement income (see the Retirement Income section).
What are the income tax brackets in Louisiana?
There are no longer income tax brackets in Louisiana. For Tax Year 2025, a single flat rate of 3% applies to all Louisiana taxable income, regardless of amount or filing status.
Is Social Security taxed in Louisiana?
No. Social Security benefits that are included in federal taxable income may be fully excluded from Louisiana taxable income under R.S. 47:44.2.
Does Louisiana tax retirement income?
Louisiana offers extensive exemptions for retirement income. Federal retirement pay (including military), Social Security, Railroad Retirement benefits, and benefits from qualifying Louisiana public retirement systems are fully excluded. Persons age 65 and older may exclude up to $12,000 of annual retirement income per person from other sources.
Do I need to file a Louisiana income tax return?
Residents, part-year residents, and nonresidents who are required to file a federal income tax return and who have Louisiana-source income must file a Louisiana return. A return must also be filed to claim a refund of overpaid withholding.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Louisiana Income Tax Rates and Brackets (2026)
The following tax rate applies to income earned in 2025, reported on returns filed in 2026.
⚠️ Major 2025 Reform Notice
Effective January 1, 2025, Louisiana eliminated its graduated income tax brackets and replaced them with a flat 3% rate for all individual taxpayers. This change resulted from Act 1 of the 2024 Third Extraordinary Session, signed into law in November 2024. The former top rate of 4.25% was abolished. Tax tables are no longer published; no brackets apply.
| Rate Snapshot | |
|---|---|
| Tax Attribute | Amount / Status |
| Tax Rate | 3% (flat) |
| Tax Structure | Flat |
| Number of Brackets | 1 (no brackets) |
| State Income Tax | Yes |
| Local Income Tax | No |
| Standard Deduction (Single) | $12,500 |
| Standard Deduction (MFS / HOH) | $12,500 |
| Standard Deduction (MFJ / QSS) | $25,000 |
| Standard Deduction (Age 65+) | $25,000 per individual |
| Personal Exemption | None (repealed for TY 2025) |
| Dependent Credit ($1,000) | None (repealed for TY 2025) |
Source: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/are-there-any-changes-to-the-combined-personal-exemption-standard-deduction/
Source (Age 65+ deduction): https://revenue.louisiana.gov/tax-education-and-faqs/faqs/constitutional-amendment/what-tax-changes-are-made-by-the-amendment/
| Louisiana Income Tax Brackets 2026 | |
|---|---|
| For Tax Year 2025, Louisiana applies a single flat rate to all taxable income: | |
| Taxable Income | Tax Rate |
| All taxable income | 3% |
This rate applies identically to:
- Single filers
- Married Filing Jointly / Qualified Surviving Spouse
- Married Filing Separately
- Head of Household
Standard Deduction and Exemptions
| Standard Deduction (Tax Year 2025) | |
|---|---|
| Filing Status | Standard Deduction |
| Single | $12,500 |
| Married Filing Separately | $12,500 |
| Head of Household | $12,500 |
| Married Filing Jointly | $25,000 |
| Qualified Surviving Spouse | $25,000 |
| Age 65 or older (per individual) | $25,000 |
Key notes:
- The standard deduction for MFJ and QSS is exactly double (200%) the single amount, as specified in statute.
- The age 65+ enhanced deduction of $25,000 was established by Louisiana constitutional amendment.
- The standard deduction will be adjusted annually based on changes in the Consumer Price Index (CPI-U).
- For Tax Year 2025, the $12,500 / $25,000 amounts are the base amounts as enacted; check LDR for any CPI adjustment applied for TY 2025.
Personal Exemptions — Repealed
For Tax Year 2025 and forward, the personal exemption deduction has been repealed. Prior to 2025, a combined personal exemption was allowed based on filing status.
Additional Deductions Repealed for TY 2025
The following deductions that existed under prior law were eliminated effective January 1, 2025:
- $1,000 deduction for blindness — repealed
- $1,000 deduction for persons age 65+ — repealed (replaced by the enhanced standard deduction)
- $1,000 dependent deduction — repealed
- Net capital gains deduction — repealed
- IRC Section 280C deduction — repealed
Source: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/
Louisiana Income Tax Credits
Louisiana offers several income tax credits for individual taxpayers. Credits directly reduce tax liability dollar-for-dollar.
1. Louisiana Earned Income Credit (EIC)
Louisiana residents who qualify for the federal Earned Income Tax Credit (EITC) may claim the Louisiana Earned Income Credit. The Louisiana credit equals 3.5% of the federal EITC amount. The credit is refundable.
Eligibility: Must qualify for and have claimed the federal EITC. Louisiana residents only.
Form: R-540EIC (for residents not otherwise required to file)
Source: https://revenue.louisiana.gov/individuals/
2. Credit for Taxes Paid to Other States
Louisiana residents who earn income in another state and pay income tax to that state may claim a credit on their Louisiana return. The credit equals the net tax liability paid to the other state on income that is also taxed by Louisiana. This prevents full double taxation.
Form: Schedule C (IT-540)
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
3. School Readiness Tax Credits
Louisiana offers multiple School Readiness Tax Credits related to early childhood education and child care:
Child Care Expense Credit: A credit for child care expenses paid for a dependent under age 6 attending a Louisiana child care facility rated under the Louisiana Quality Star Rating program.
- Refundable for taxpayers with federal AGI of $25,000 or less.
- Nonrefundable (with 5-year carryforward) for taxpayers with federal AGI above $25,000.
- Form: Schedule F (IT-540) or Schedule F-NR (IT-540B)
Director and Staff Credit: A credit for child care directors and staff based on their educational level.
Child Care Provider Credit: A credit for qualifying child care providers based on the average monthly number of children enrolled in assistance programs.
Business Support Credit: A credit for businesses that support quality child care operations.
Source: https://revenue.louisiana.gov/individuals/general-resources/school-readiness-credit/
4. School Tuition Organization Donation Credit
Louisiana residents may claim a nonrefundable income tax credit for donations made to approved School Tuition Organizations (STOs). The credit is subject to annual legislative appropriation caps.
Source: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/tuition-donation-credit-program/
5. Inventory Tax Credit / Ad Valorem Tax Credit
Manufacturers, distributors, and retailers who pay ad valorem (property) taxes on inventory or natural gas may claim a credit against income tax. This is primarily a business-oriented credit but may affect taxpayers with sole proprietorships or pass-through entities.
Form: R-10610
Source: https://revenue.louisiana.gov/tax-forms/businesses/
6. Historic Structures Rehabilitation Credit
Louisiana residents who incur expenditures rehabilitating qualified historic structures may claim this credit. Act 426 of the 2023 Regular Session expanded the credit to include expenditures incurred on or after January 1, 2023.
Source: https://revenue.louisiana.gov/
Statutory Authority
State income tax in Louisiana is authorized under the following legal framework:
Constitutional Authority:
- Louisiana Constitution, Article VII, Section 4 — grants the Legislature authority to levy income taxes.
- Constitutional amendment approved November 2024 — established the doubled standard deduction for individuals age 65+, resulting in $25,000 per individual.
Statutory Authority:
- Louisiana Revised Statutes, Title 47, Chapter 1 — Income Tax (LA R.S. 47:1 et seq.)
- LA R.S. 47:32 — Individual income tax rate (flat 3% effective January 1, 2025)
- LA R.S. 47:294 — Standard deduction ($12,500 single / $25,000 MFJ; CPI-adjusted annually)
- LA R.S. 47:44.1 — Annual retirement income exclusion (persons 65+)
- LA R.S. 47:44.2 — Social Security, federal retirement, and Railroad Retirement exclusions
- LA R.S. 47:103 — Six-month automatic extension of time to file (effective TY 2022+)
- LA R.S. 47:116 — Declaration of estimated income tax
- LA R.S. 47:118 — Underpayment of estimated tax penalty (12% annually)
- LA R.S. 47:297.8 — Louisiana Earned Income Credit
- LA R.S. 47:297.10 — School expense deduction for elementary and secondary tuition
- LA R.S. 47:6107 — School Readiness Tax Credits
Administrative Regulations:
- Louisiana Administrative Code (LAC), Title 61, Part I — Income Tax Regulations
- LAC 61:I.1520 — Nonresident professional athlete withholding
- LAC 61:I.1903 — School Readiness Tax Credit administration
Legislative History:
- Original income tax enactment: 1934
- Tax reform (graduated brackets to flat rate): Act 1, 2024 Third Extraordinary Session, effective January 1, 2025
- Six-month automatic extension: Act of 2022 Regular Session, effective TY 2022
Source: https://www.legis.la.gov/Legis/Law.aspx?d=101106 (LA R.S. 47:116)
Source: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/
Who Must File Louisiana Income Tax
Residents
Louisiana law requires residents to file a Louisiana Individual Income Tax Return (Form IT-540) if:
- The taxpayer is required to file a federal income tax return, OR
- The taxpayer overpaid Louisiana income tax through withholding or estimated tax payments and seeks a refund.
There is no separate Louisiana income threshold that overrides the federal filing requirement test. If you must file federally, you must file in Louisiana.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Part-Year Residents
Part-year residents of Louisiana who are required to file a federal return must file Louisiana Form IT-540B and report all income earned from Louisiana sources during their period of Louisiana residency, plus all income from non-Louisiana sources earned while a Louisiana resident.
Non-Residents
Nonresidents who are required to file a federal income tax return must file Louisiana Form IT-540B if they received income from Louisiana sources, including:
- Wages and compensation earned while physically working in Louisiana
- Income from a business operating in Louisiana
- Rental income from Louisiana property
- Louisiana gambling winnings (including casino winnings — these are specifically defined as Louisiana-source income under state law)
- Income from Louisiana oil, gas, or mineral interests
The IT-540B calculation requires the taxpayer to report total income from all sources to establish a Louisiana income ratio. Only the Louisiana-source portion is ultimately subject to Louisiana tax.
Special rule for gambling winnings: A nonresident who receives gambling winnings from Louisiana sources and is required to file a federal return must file a Louisiana return. Withholding is typically applied at the source, and a refund may be claimed if the amount withheld exceeds actual tax owed.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
What Income Is Taxable in Louisiana
Fully Taxable Income (Residents)
Louisiana residents owe income tax on all income from all sources, subject to specific statutory exclusions. Fully taxable categories include:
- Wages, salaries, and tips
- Self-employment income and business income
- Investment income (interest, dividends, capital gains)
- Retirement account distributions (401(k), traditional IRA, SEP-IRA)
- Rental income
- Partnership and S-corporation pass-through income
- Gambling winnings
- Alimony (subject to federal treatment rules)
- Other income taxable federally unless specifically excluded by Louisiana law
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Social Security Benefits
Louisiana does not tax Social Security benefits. Social Security benefits included in federal taxable income may be excluded from Louisiana taxable income under R.S. 47:44.2.
No income threshold applies. The full amount of federally taxable Social Security benefits is excluded from Louisiana tax, regardless of the taxpayer’s income level.
Military Retirement Pay
Louisiana fully excludes military retirement pay from state income tax. Federal retirement benefits received by federal retirees — including both military and civilian federal employees — may be excluded from Louisiana taxable income under R.S. 47:44.2. Benefits received from a military survivor benefit plan also qualify for this exclusion.
Federal Civilian Retirement Benefits
Federal civilian retirement benefits (CSRS, FERS) are fully excluded from Louisiana taxable income under the same provision as military retirement (R.S. 47:44.2). Railroad Retirement System benefits received by federal retirees are also excludable.
Louisiana Public Pension Income
Benefits from numerous Louisiana state and local public retirement systems are exempt from Louisiana income tax under the provisions of Chapter 1, Title 11 of the Louisiana Revised Statutes. Qualifying systems include:
- Louisiana State Employees’ Retirement System (LASERS) — R.S. 11:405
- Teachers’ Retirement System of Louisiana (TRSL) — R.S. 11:704
- Louisiana School Employees’ Retirement System (LSERS) — R.S. 11:1003
- Louisiana State Police Retirement System — R.S. 11:1331
- Municipal Employees’ Retirement System of Louisiana — R.S. 11:1735
- Municipal Police Employees’ Retirement System — R.S. 11:2228
- Firefighters’ Retirement System — R.S. 11:2263
- Sheriffs’ Pension and Relief Fund — R.S. 11:2182
- Employees’ Retirement System of the City of New Orleans — R.S. 11:3823
- And numerous other state and local qualifying systems
DROP account disbursements from these qualifying systems are also exempt from Louisiana individual income tax.
Annual Retirement Income Exclusion (Age 65+)
For Tax Year 2025, persons age 65 or older may exclude up to $12,000 of annual retirement income from Louisiana taxable income under R.S. 47:44.1(A). This exclusion applies to retirement income not otherwise fully exempt under R.S. 47:44.2 (i.e., private pensions, IRA distributions, annuities, etc.).
Key details:
- Taxpayers who are MFJ and both age 65 or older may each exclude up to $12,000 (for a combined maximum of $24,000 if each has separate retirement income).
- If only one spouse has retirement income, the exclusion is limited to $12,000.
- The $12,000 exclusion amount is adjusted annually based on the CPI-U.
Private Pension Income (Under Age 65)
Private pension income (from private-sector defined benefit plans), 401(k) distributions, traditional IRA distributions, and annuity payments are generally taxable for Louisiana residents under age 65, unless covered by one of the specific exclusions above.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Roth IRA Distributions
Qualified Roth IRA distributions (contributions already taxed; earnings distributed after age 59½ and 5-year holding period) are not taxable for federal purposes and therefore generate no Louisiana taxable income.
Active Duty Military Income Deduction
Louisiana residents who are members of the armed services and were stationed outside Louisiana on active duty for 120 or more consecutive days are entitled to deduct up to $30,000 of military income from Louisiana taxable income. The income must first be included on the return before the deduction is applied.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
School Expense Deduction
Louisiana residents may deduct educational expenses paid for qualifying dependents attending elementary or secondary school. For Tax Year 2024 and forward:
- Public school or homeschool dependents: Deduction for 50% of costs, up to $6,000 per dependent.
- Nonpublic school dependents: Deduction for actual tuition and fees paid, up to $6,000 per dependent.
The deduction is claimed on Schedule E (Form IT-540). Part-year residents may claim the deduction for expenses paid during their period of Louisiana residency. Nonresidents are not eligible.
Source: https://revenue.louisiana.gov/individuals/general-resources/school-expense-deduction/
Interest and Dividends from U.S. Government Obligations
Interest and dividends from obligations of the U.S. government (e.g., U.S. Treasury bonds, notes, bills) are excluded from Louisiana taxable income, mirroring the federal exemption from state taxation of federal obligations.
Source: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/individual-income-tax/
Filing Deadlines
Regular Deadline
May 15, 2026 for Tax Year 2025 returns.
⚠️ Louisiana’s filing deadline is May 15, not the federal April 15 deadline. This applies to both resident returns (IT-540) and nonresident/part-year returns (IT-540B).
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Automatic Extension
Louisiana grants an automatic six-month extension to file the individual income tax return under R.S. 47:103, effective for tax years beginning on or after January 1, 2022. No extension form needs to be filed — the extension is automatic.
- Extended deadline: November 15, 2026
- The extension covers only the filing of the return — it is not an extension of time to pay tax owed.
- Tax payments submitted after May 15, 2026 are subject to penalties and interest, regardless of whether an extension applies to the filing.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Estimated Tax Payments
Taxpayers who expect their Louisiana income tax after credits and withholding to exceed $1,000 (single filers) or $2,000 (joint filers) must make quarterly estimated tax payments under R.S. 47:116.
| Calendar Year Estimated Tax Payment Schedule (Tax Year 2025) | |
|---|---|
| Quarter | Due Date |
| Q1 (January 1 – March 31) | April 15, 2025 |
| Q2 (April 1 – May 31) | June 15, 2025 |
| Q3 (June 1 – August 31) | September 15, 2025 |
| Q4 (September 1 – December 31) | January 15, 2026 |
Special rules for farmers and fishermen: If at least two-thirds of estimated gross income is from farming or fishing, the single estimated payment may be made by January 15 of the following year, or the return may be filed and full payment made by March 1.
Exception: No estimated payment is required if a return is filed and full payment made by January 31 of the following year.
Underpayment penalty: 12% annually on any underpayment amount (R.S. 47:118).
Safe harbor: No underpayment penalty applies if estimated payments equal at least:
- The tax due on the prior year’s return, OR
- 90% of the current year’s tax liability (66.67% for qualified farmers and fishermen)
Form: IT-540ES (Estimated Tax Declaration Voucher for Individuals)
Source: https://revenue.louisiana.gov/individuals/general-resources/declaration-of-estimated-income-taxes/
Filing Options for Louisiana Income Tax
Online Filing (E-File)
Electronic filing is available through:
- Louisiana File Online (LDR’s free portal): https://latap.revenue.louisiana.gov/ — Free e-file and payment directly through the Louisiana Taxpayer Access Point (LaTAP).
- IRS-Approved Tax Software: Commercial software vendors approved by LDR to prepare and file Louisiana returns. List of approved vendors: https://revenue.louisiana.gov/individuals/general-resources/approved-software-vendors/
- Electronic payment options: Taxpayers may pay estimated tax electronically via Louisiana File Online or by credit card through Official Payments (https://www.officialpayments.com).
Note: Professional athletes (members of NFL, NBA, NHL, PGA, etc.) are required to file Louisiana returns electronically.
Paper Filing
Paper forms are available for download and mail filing:
- Resident return: Form IT-540 — https://revenue.louisiana.gov/tax-forms/individuals/
- Nonresident/Part-year return: Form IT-540B — https://revenue.louisiana.gov/tax-forms/individuals/
Mailing address — Return with payment:
Louisiana Department of Revenue
P.O. Box 3550
Baton Rouge, LA 70821-3550
Mailing address — Return without payment (refund):
Louisiana Department of Revenue
P.O. Box 3440
Baton Rouge, LA 70821-3440
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Penalties and Interest
Late Filing / Late Payment Penalty
Louisiana imposes a single delinquency penalty that covers both late filing and late payment:
- Rate: Begins at 5% of the tax owed.
- Increases: By an additional 5% for every 30 days the return or payment remains delinquent.
- Maximum: 25% of tax owed.
Under R.S. 47:1603, delinquent filing or payment penalties may be waived if the delay was due to reasonable cause rather than negligence. Waiver requests are submitted via Form R-20128.
Source: https://revenue.louisiana.gov/collections/general-sources/penalties/
Late Payment Penalty (Separate from Extension)
For extensions: The automatic six-month extension covers only the filing. Any tax not paid by May 15, 2026 accrues the late payment penalty rate of 0.5% per 30 days (up to 25% maximum) under the collections penalty schedule.
Interest on Unpaid Tax
Interest accrues on unpaid tax from the date the return is required to be filed. The interest rate is subject to change annually and is published on LDR Form R-1111.
- Prior to January 1, 2006: 1.25% per month (15% per year).
- Beginning January 1, 2006: Variable annual rate — see current rate at https://revenue.louisiana.gov/tax-forms/
Underpayment of Estimated Tax Penalty
If required estimated tax payments are not made in sufficient amounts, the underpayment penalty is 12% annually on the underpayment amount, calculated from the date the installment was due to the earlier of April 15 of the following year or the date the underpayment is paid.
Form: R-210R (residents) or R-210NR (nonresidents/part-year residents)
Source: https://revenue.louisiana.gov/individuals/general-resources/declaration-of-estimated-income-taxes/
Military Personnel
Servicemembers Civil Relief Act (SCRA)
Active duty military members stationed in Louisiana due to military orders do not become Louisiana residents solely by virtue of those orders. Under the SCRA, such servicemembers:
- Continue to pay income tax to their state of legal residence (home of record / domicile).
- Are not subject to Louisiana income tax on military pay.
- Will not be assessed Louisiana income tax for years in which they filed a federal return using a Louisiana address due solely to their military assignment.
If LDR contacts a servicemember regarding Louisiana income tax liability based on a Louisiana federal return address, the servicemember may document their legal residency status to preclude further assessment.
Military Spouses Residency Relief Act (MSRRA)
Under the MSRRA, the spouse of an active duty servicemember may maintain their own state of domicile and is not taxed by Louisiana on income earned in Louisiana if:
- The spouse is present in Louisiana solely to be with the servicemember.
- The servicemember is stationed in Louisiana under military orders.
- The spouse maintains domicile in another state.
Employer withholding: Military spouses claiming the MSRRA exemption submit Form L-4E (Military Spouse Income Tax Exemption) to their Louisiana employer. The employer should not withhold Louisiana income tax on wages paid to a qualifying military spouse.
Louisiana Military Personnel — Tax Year 2023 and Forward
Louisiana enacted significant changes to how military personnel choose their state tax domicile, effective for Tax Year 2023. Under current law, military personnel and their spouses may each independently choose one of three jurisdictions for Louisiana state tax purposes:
- The servicemember’s residence or domicile
- The military spouse’s residence or domicile
- The servicemember’s permanent duty station
This election system grants greater flexibility than prior law, which automatically used Louisiana as the tax domicile for Louisiana-domiciled servicemembers regardless of duty station.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Military Retirement Pay — Louisiana Treatment
Louisiana fully exempts military retirement pay from state income tax. Federal retirement benefits received by military retirees are excluded from Louisiana taxable income under R.S. 47:44.2. Benefits from a military survivor benefit plan are also excluded.
There is no age threshold, income limit, or phase-out for this exemption.
Active Duty Pay — Additional Deduction
Louisiana residents who are members of the armed services and who were stationed outside Louisiana on active duty for 120 or more consecutive days are entitled to deduct up to $30,000 of military income from Louisiana taxable income. The income must be included on the Louisiana return before the deduction is applied.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
What Military Members WITH Louisiana Domicile Owe
Louisiana-domiciled military members who elect Louisiana as their tax jurisdiction owe Louisiana income tax on non-military Louisiana-source income, including rental income, investment income, and non-military wages.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Retirees
Social Security Benefits
Louisiana does not tax Social Security benefits. Social Security benefits that are taxed on the federal return are fully excluded from Louisiana taxable income under R.S. 47:44.2. This exclusion applies regardless of income level.
Federal Retirement and Military Retirement
All federal retirement benefits (military and civilian) are fully excluded from Louisiana taxable income under R.S. 47:44.2. This includes:
- U.S. military retirement pay
- Federal Civil Service Retirement System (CSRS) benefits
- Federal Employees Retirement System (FERS) benefits
- Military survivor benefit plan benefits
- Railroad Retirement System benefits
Louisiana Public Pensions
Benefits from Louisiana public retirement systems operating under Chapter 1, Title 11 of the Louisiana Revised Statutes are exempt from Louisiana individual income tax. This includes LASERS, TRSL, LSERS, and dozens of other state, municipal, and parish retirement systems. DROP account distributions from these systems are also tax-exempt.
Annual Retirement Income Exclusion (Persons Age 65+)
Persons age 65 or older may exclude up to $12,000 of annual retirement income from Louisiana taxable income under R.S. 47:44.1(A). This exclusion applies to retirement income not otherwise fully exempt (primarily private pensions, annuities, IRA distributions).
- For MFJ where both spouses are 65+: each may exclude up to $12,000 from their own retirement income.
- If only one spouse has retirement income: the exclusion is capped at $12,000.
- The $12,000 exclusion is CPI-adjusted annually.
Enhanced Standard Deduction (Age 65+)
Louisiana’s November 2024 constitutional amendment established an enhanced standard deduction of $25,000 per individual for taxpayers age 65 or older. This is double the standard $12,500 deduction for single filers and effectively reduces or eliminates Louisiana income tax liability for many retirees over 65.
401(k) and Traditional IRA Distributions (Under Age 65)
For retirees under age 65, distributions from 401(k) plans, traditional IRAs, and private annuities are generally included in Louisiana taxable income after the standard deduction. Louisiana follows federal AGI as the starting point.
Roth IRA Distributions
Qualified Roth IRA distributions are not taxable federally and generate no Louisiana income tax liability.
Withholding on Retirement Income
Louisiana does not require withholding on pensions, retirement income, and annuities under R.S. 47:111(A)(9). However, recipients may voluntarily request that withholding be deducted.
Students
College students attending school in Louisiana do not automatically become Louisiana residents for tax purposes.
Non-resident students remain non-residents if:
- They maintain legal domicile (permanent home) in another state.
- Their presence in Louisiana is temporary for educational purposes.
- They intend to return to their home state after graduation.
Non-resident students owe Louisiana tax only on Louisiana-source income:
- Wages and compensation earned while working in Louisiana.
- Business income from Louisiana operations.
Establishing Louisiana residency as a student: Students can become Louisiana residents if they take affirmative steps to establish domicile in Louisiana:
- Register to vote in Louisiana.
- Obtain a Louisiana driver’s license.
- Express intent to remain in Louisiana indefinitely.
- Terminate residential ties to their prior home state.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Part-Year Residents
If you moved TO or FROM Louisiana during 2025, Louisiana law requires filing as a part-year resident using Form IT-540B (Nonresident and Part-Year Resident Individual Income Tax Return).
Income Allocation
The IT-540B calculation for part-year residents involves:
- Reporting total income from all sources.
- Calculating the ratio of Louisiana AGI to federal AGI.
- Applying the 3% rate to Louisiana-source income only.
Moving TO Louisiana:
- Calculate Louisiana residency start date.
- Report all income earned after establishing Louisiana domicile.
- File a nonresident or part-year return in the prior state for income earned before the move.
Moving FROM Louisiana:
- Calculate Louisiana residency end date (day new domicile is established elsewhere).
- Report all income earned through that date.
- File a nonresident or part-year return in the new state for income earned after the move.
Form required: IT-540B (Nonresident and Part-Year Resident Individual Income Tax Return)
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Special Considerations for Remote Workers and Multi-State Taxation
Living in Louisiana, Working for an Out-of-State Employer
As a Louisiana resident, you owe Louisiana income tax on all income, regardless of where your employer is located or where the company’s headquarters are. Employer location does not determine tax obligation.
What this means:
- A Louisiana resident working remotely for a Texas or California company owes Louisiana income tax on that income.
- The employer should withhold Louisiana income tax for Louisiana resident employees.
- Income is taxable in Louisiana even if the employer has no Louisiana presence.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Working in Louisiana, Living in Another State
Nonresidents who perform work physically in Louisiana owe Louisiana income tax on income from Louisiana sources, based on where the work is physically performed.
Physical presence sourcing: Louisiana income tax on nonresident wages is based on days worked in Louisiana relative to total workdays. Services performed entirely outside Louisiana are not Louisiana-source income.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Convenience of the Employer Rule
Louisiana does not apply a “convenience of the employer” rule. Nonresidents are taxed only on income from work physically performed in Louisiana. Income earned while working remotely from another state is not subject to Louisiana tax for nonresidents, even if the employer is a Louisiana company.
This is a favorable rule for remote workers living outside Louisiana who work for Louisiana-based employers.
Reciprocal Agreements
Louisiana does not have reciprocal agreements with any other state. Both residents and nonresidents must follow each state’s own sourcing rules. A Louisiana resident working in another state must file a nonresident return in the work state (if that state taxes income), and claim a credit on the Louisiana return for taxes paid to the other state.
Multi-State Tax Filing for Louisiana Residents
When a Louisiana resident earns income in multiple states:
- File a Louisiana resident return (IT-540) reporting all income from all sources.
- File nonresident returns in other states where income was earned (if required by those states).
- Claim a credit on the Louisiana return (Schedule C) for the net tax liability paid to the other state on income included in the Louisiana return.
Form: Schedule C of IT-540 (Credit for Net Tax Liability Paid to Another State)
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
⚠️ Interstate Tax Risk Indicator
Remote workers involving Louisiana may encounter dual taxation complications with these states in particular:
- New York — Applies a strict convenience of the employer rule. A New York-based employer may result in NY tax obligations for remote workers outside NY.
- California — Aggressive residency auditing for extended work periods in-state. Former California residents are scrutinized for six months after leaving.
- Pennsylvania — Over 200 local income tax jurisdictions; PA nonresidents working in PA municipalities may owe local tax.
- Connecticut — Complex credit system for taxes paid to other states; may not fully offset double taxation.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/ and IRS Publication 505
Tax Residency vs Domicile in Louisiana
Domicile Defined
Domicile is your permanent legal home — the place you intend to return to and remain indefinitely. Louisiana tax law, like most states, uses domicile as the primary test for full resident taxation.
Key characteristics of domicile:
- You can have only one domicile at a time.
- Domicile continues until you establish a new domicile elsewhere with intent to remain.
- A temporary absence from Louisiana does not change your Louisiana domicile.
Louisiana law specifically provides: “A temporary absence from Louisiana does not automatically change your domicile for individual income tax purposes.”
Factors establishing Louisiana domicile:
- Maintaining your primary home in Louisiana
- Louisiana voter registration
- Louisiana driver’s license and vehicle registration
- Family residence in Louisiana
- Louisiana bank accounts and financial ties
- Louisiana professional licenses
- Homestead exemption claimed in Louisiana
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Residency Defined
Louisiana taxes residents on all income. Residency for Louisiana purposes is primarily based on domicile, not a day-count statutory residency test like some other states (e.g., New York’s 183-day rule).
However, the practical effect is similar: a person domiciled in Louisiana remains a Louisiana tax resident throughout the year, even if they spend significant time in another state, unless they establish domicile elsewhere.
Critical Difference from Other States
Unlike New York, California, or Massachusetts, Louisiana does not have a statutory residency rule based solely on physical presence and maintaining an abode in the state. Louisiana’s resident taxation is domicile-based. This can be more favorable for taxpayers who split time between Louisiana and other states, as long as their domicile is clearly established outside Louisiana.
Common Conflict Scenarios
Scenario 1: Louisiana resident working in another state temporarily
A Louisiana-domiciled professional assigned to work in Texas for 8 months retains Louisiana as their tax domicile. They owe Louisiana income tax on all income. Texas has no income tax, so no credit is needed.
Scenario 2: Retired person leaving Louisiana
A retiree sells their Louisiana home, registers to vote in Florida, and gets a Florida driver’s license. Louisiana domicile ends on the date the new Florida domicile is established. Louisiana taxes income through that date.
Scenario 3: Part-year move
If domicile changes during 2025, the taxpayer files IT-540B as a part-year resident, reporting Louisiana income only for the period of Louisiana domicile.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Documentation Commonly Requested in Residency Audits
| Primary Residency Evidence | |
|---|---|
| Document Type | What It Shows |
| Louisiana Driver’s License | State of legal residence |
| Louisiana Voter Registration | Where voting rights are exercised |
| Vehicle Registration | Where vehicles are domiciled |
| Homestead Exemption Filing | Primary residence claim |
| Physical Presence Documentation | |
|---|---|
| Document Type | What It Shows |
| Day-Count Logs | Physical location by day |
| Travel Records | Interstate travel patterns |
| Credit Card Statements | Geographic spending patterns |
| Cell Phone Records | Location data from carrier |
| Hotel / Lodging Receipts | Time spent in other states |
| Property and Financial Ties | |
|---|---|
| Document Type | What It Shows |
| Property Ownership | Real estate holdings |
| Utility Bills | Physical occupancy patterns |
| Home/Rental Lease | Residence location |
| Bank Statements | Financial institution location |
| Employment and Intent Documentation | |
|---|---|
| Document Type | What It Shows |
| W-2 Forms | Employer location, wages |
| Employment Contract | Work location requirements |
| Remote Work Agreement | Authorization to work remotely |
| Will / Estate Documents | Stated domicile |
| Prior Year Tax Returns | Prior residency claims |
Common Louisiana audit triggers:
- Claiming non-residency while maintaining Louisiana homestead exemption
- Louisiana driver’s license or voter registration while claiming non-residency
- Family remaining in Louisiana while taxpayer claims domicile elsewhere
- High-income filers moving out of Louisiana
Burden of Proof: In Louisiana residency disputes, the burden typically falls on the taxpayer to demonstrate that domicile changed and Louisiana tax obligations ended.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Common Tax Filing Situations
Situation: “My employer is in Texas, so I don’t owe Louisiana income tax.”
Louisiana law: Louisiana residents owe income tax on all income regardless of employer location. A Louisiana resident working remotely for a Texas employer owes Louisiana income tax on that income. Employer location is irrelevant to Louisiana tax obligation.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Situation: “I won money at a Louisiana casino. I live in Mississippi. Do I owe Louisiana tax?”
Louisiana law: Gambling winnings earned in Louisiana are considered Louisiana-source income. A nonresident who receives Louisiana gambling winnings and is required to file a federal return must file a Louisiana return. Louisiana withholding is typically applied at the source, and a refund of the overpaid portion can be claimed.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Situation: “I moved from Louisiana to Texas in April 2025. Do I owe Louisiana income tax?”
Louisiana law: Yes, for income earned through the date you established Texas domicile. File Form IT-540B as a part-year resident. Report income earned while a Louisiana resident; exclude income earned after Texas domicile was established.
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Situation: “I receive military retirement. Do I owe Louisiana income tax?”
Louisiana law: No. Military retirement pay is fully excluded from Louisiana taxable income under R.S. 47:44.2, regardless of the retiree’s income level or age.
Forms & Publications
Primary Tax Return Forms
Resident return:
- Form IT-540 — Louisiana Resident Individual Income Tax Return
- Instructions: https://revenue.louisiana.gov/tax-forms/individuals/
- Download: https://revenue.louisiana.gov/tax-forms/individuals/
Non-resident / Part-year resident return:
- Form IT-540B — Louisiana Nonresident and Part-Year Resident Individual Income Tax Return
- Instructions: https://revenue.louisiana.gov/tax-forms/individuals/
- Download: https://revenue.louisiana.gov/tax-forms/individuals/
⚠️ Note on TY 2025 forms: As of the time of this guide, LDR listed the 2024 versions of IT-540 and IT-540B. The 2025 versions (for filing in 2026) will be published on the LDR tax forms page when available. LDR began accepting 2025 returns in January 2026.
Source: https://revenue.louisiana.gov/tax-forms/individuals/
| Common Schedules and Attachments | |
|---|---|
| Form / Schedule | Purpose |
| Schedule C (IT-540) | Credit for Net Tax Liability Paid to Another State |
| Schedule E (IT-540) | Adjustments to Income (incl. school expense deduction) |
| Schedule F (IT-540) | School Readiness Child Care Expense Credit |
| Schedule F-NR (IT-540B) | School Readiness Credit for Nonresidents |
| Schedules NRPA-1 & NRPA-2 | Nonresident Professional Athlete income calculation |
| School Expense Deduction Worksheet | Required attachment when claiming school expense deduction |
| Withholding and Employer Forms | |
|---|---|
| Form | Purpose |
| L-4 | Louisiana Employee Withholding Exemption Certificate (equivalent to federal W-4) |
| L-4E | Military Spouse Income Tax Exemption Certificate |
| L-1 | Employer's Return of Louisiana Withholding Tax (quarterly) |
| L-3 | Employer's Annual Reconciliation of Withholding Tax (W-2s) |
| Estimated Tax Forms | |
|---|---|
| Form | Purpose |
| IT-540ES | Estimated Tax Declaration Voucher for Individuals |
| IT-540ESi | Estimated Tax Instructions (includes worksheet for flat 3% rate) |
| R-2868V | Individual Income Tax 2025 Automatic Extension Payment Voucher |
| Penalty and Waiver Forms | |
|---|---|
| Form | Purpose |
| R-210R | Underpayment of Individual Income Penalty Computation (Residents) |
| R-210NR | Underpayment of Individual Income Penalty Computation (Nonresidents/Part-Year) |
| R-20128 | Request for Waiver of Penalties |
Source: https://revenue.louisiana.gov/tax-forms/individuals/
Key Publications
- Individual Income Tax reform FAQ (2024 Third Extraordinary Session): https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/
- School Readiness Credit information: https://revenue.louisiana.gov/individuals/general-resources/school-readiness-credit/
- School Expense Deduction information: https://revenue.louisiana.gov/individuals/general-resources/school-expense-deduction/
- Declaration of Estimated Income Taxes: https://revenue.louisiana.gov/individuals/general-resources/declaration-of-estimated-income-taxes/
- Revenue Information Bulletin 23-012 (Automatic Extension): Search at https://revenue.louisiana.gov/tax-policy/policies
Where to Submit Paper Returns
Resident returns with payment:
Louisiana Department of Revenue
P.O. Box 3550
Baton Rouge, LA 70821-3550
Resident returns without payment (refund):
Louisiana Department of Revenue
P.O. Box 3440
Baton Rouge, LA 70821-3440
Source: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
Information Verification Log
Official Louisiana Income Tax Resources
All information compiled exclusively from official government sources.
Louisiana Department of Revenue (LDR)
- Main Website: https://revenue.louisiana.gov/
- Individual Income Tax Overview: https://revenue.louisiana.gov/individuals/general-resources/individual-income-tax/
- Tax Forms Library (Individuals): https://revenue.louisiana.gov/tax-forms/individuals/
- Approved Software Vendors (E-File): https://revenue.louisiana.gov/individuals/general-resources/approved-software-vendors/
- Louisiana File Online / LaTAP: https://latap.revenue.louisiana.gov/
- Where’s My Refund?: https://revenue.louisiana.gov/refund/
- Income Tax Reform FAQ (2025 flat rate): https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/
- All FAQs: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/
- Retirement Income Exclusions: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/individual-income-tax/is-there-a-list-of-retirement-system-benefits-that-may-be-excluded-from-louisiana-income-tax/
- School Readiness Credit: https://revenue.louisiana.gov/individuals/general-resources/school-readiness-credit/
- School Expense Deduction: https://revenue.louisiana.gov/individuals/general-resources/school-expense-deduction/
- Estimated Tax Declarations: https://revenue.louisiana.gov/individuals/general-resources/declaration-of-estimated-income-taxes/
- Penalties: https://revenue.louisiana.gov/collections/general-sources/penalties/
- Rules & Regulations: https://revenue.louisiana.gov/tax-policy/rules-regulations
- Policies (Revenue Information Bulletins): https://revenue.louisiana.gov/tax-policy/policies
- News and Announcements: https://revenue.louisiana.gov/news-and-announcements/
Louisiana Tax Code and Regulations
- Louisiana Revised Statutes Title 47 (Tax Collection): https://www.legis.la.gov/Legis/Law.aspx?d=101106
- Louisiana Legislature — Official Statutes: https://www.legis.la.gov/
- Louisiana Administrative Code Title 61 (Revenue and Taxation): Available through the Louisiana Secretary of State at https://www.doa.la.gov/pages/osr/lac/books.aspx
Contact Information
Louisiana Department of Revenue
617 North Third Street
Baton Rouge, LA 70802
Mailing: P.O. Box 201
Baton Rouge, LA 70821-0201
Phone (General): (855) 307-3893
Business Hours: Monday–Friday, 8:00 AM–4:30 PM CT
Online Contact Form: https://revenue.louisiana.gov/contact-us/
Free Tax Assistance
VITA (Volunteer Income Tax Assistance):
For eligible filers (generally income under $67,000). Find locations: https://www.irs.gov/vita
TCE (Tax Counseling for the Elderly):
Specialized assistance for taxpayers 60 and older. Find locations: https://www.irs.gov/tce
AARP Tax-Aide:
Find locations: https://www.aarp.org/money/taxes/aarp_taxaide/
Where to Check for Updates
Income Tax Reform FAQs (2025 flat rate):
https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/
Tax Forms (updated annually):
https://revenue.louisiana.gov/tax-forms/individuals/
Legislative Changes:
https://www.legis.la.gov/
Administrative Guidance (Revenue Information Bulletins):
https://revenue.louisiana.gov/tax-policy/policies
Tax Calendar:
https://revenue.louisiana.gov/calendar/
LDR News and Announcements:
https://revenue.louisiana.gov/news-and-announcements/
Note: This page will be reviewed and updated in January 2027 for Tax Year 2026. The standard deduction amounts may be adjusted for inflation (CPI-U) for TY 2026. Always consult https://revenue.louisiana.gov/ for the most current information.
Tax Glossary
Adjusted Gross Income (AGI):
Total income minus specific deductions allowed under federal law (e.g., IRA contributions, student loan interest). Louisiana uses federal AGI as the starting point for Louisiana taxable income calculations.
Taxable Income (Louisiana):
Louisiana AGI minus the Louisiana standard deduction (and any Louisiana-specific exclusions such as retirement income, Social Security, etc.).
Resident:
An individual domiciled in Louisiana. Louisiana taxes residents on all income from all sources.
Non-Resident:
An individual not domiciled in Louisiana who earns income from Louisiana sources (wages earned in Louisiana, Louisiana business income, Louisiana rental income, Louisiana gambling winnings, etc.).
Part-Year Resident:
An individual who moved into or out of Louisiana during the tax year. Files Form IT-540B.
Domicile:
Your permanent legal home — the place you intend to return to indefinitely. A temporary absence does not change Louisiana domicile.
Withholding:
Louisiana income tax deducted from wages by an employer and remitted to LDR on the employee’s behalf. Employer uses Form L-4 to determine withholding amount.
Reciprocity:
An agreement between states where residents working across state lines pay income tax only to their state of residence. Louisiana has no reciprocal agreements with any other state.
Tax Credit:
Dollar-for-dollar reduction in tax owed. Example: the Louisiana Earned Income Credit reduces Louisiana tax by 3.5% of the federal EITC amount.
Tax Deduction:
Reduces taxable income. Example: the school expense deduction reduces Louisiana taxable income, saving 3% of the deducted amount at the flat tax rate (e.g., a $6,000 deduction saves $180 in Louisiana tax).
Standard Deduction:
The fixed dollar amount Louisiana allows as a deduction from AGI before calculating tax. For TY 2025: $12,500 (single) / $25,000 (MFJ). Replaces the former combined personal exemption system.
Exclusion:
Income that is included in federal AGI but specifically removed from Louisiana taxable income by Louisiana law. Examples: Social Security benefits, military retirement pay, Louisiana public pension income.
Flat Tax:
A single tax rate applied to all taxable income, regardless of amount. Louisiana switched to a flat 3% rate effective January 1, 2025, eliminating the prior graduated bracket system.
Filing Status:
Category determining standard deduction and other tax parameters: Single, Married Filing Jointly, Married Filing Separately, Head of Household, Qualified Surviving Spouse.
LaTAP:
Louisiana Taxpayer Access Point — LDR’s online portal for filing returns, making payments, and managing tax accounts. Available at https://latap.revenue.louisiana.gov/
Update History
February 2026 — Initial Publication
- Published comprehensive Louisiana income tax guide for Tax Year 2025
- All sections verified from official Louisiana Department of Revenue sources
- Reflects 2024 Third Extraordinary Session tax reform (flat 3% rate, new standard deductions, repeal of graduated brackets and various old deductions)
- Reflects November 2024 constitutional amendment (enhanced $25,000 standard deduction for age 65+)
Verification Schedule:
- Annual Update: January (new standard deduction CPI adjustment, updated forms)
- Mid-Year Review: June (legislative changes from Regular Session)
- Continuous Monitoring: Emergency legislation, LDR administrative guidance changes
- Source Link Check: Quarterly (all .gov URLs verified functional)
Last comprehensive update: February 19, 2026
Next scheduled review: January 2027