LOUISIANA PAYCHECK CALCULATOR
Louisiana blew up its entire income tax system in one legislative session. Voters approved a constitutional amendment in November 2024, and Governor Jeff Landry signed the enabling laws that December, replacing the old 1.85% to 4.25% graduated brackets with a single flat 3% rate starting January 1, 2025. It’s the second lowest flat income tax rate in the country and the lowest anywhere in the South.
A Louisiana paycheck gets trimmed by federal income tax, Social Security, Medicare, and that flat 3% state rate. There’s no local income tax anywhere in the state, but the same reform that lowered income taxes also pushed the state sales tax rate up, something worth knowing before you assume Louisiana is simply a low-tax state across the board. Curious how it compares to its neighbors? Check the calculators for Texas, Mississippi, Arkansas, and Tennessee.
Calculate Your Take-Home Pay
Estimate only. Does not include local sales tax (Louisiana’s parishes and cities each set their own rate), or pre-tax deductions like 401(k) or health insurance. Consult a tax professional for exact figures.
Every Deduction on a Louisiana Paycheck
- Federal income tax: Withheld based on your W-4 and the 2026 IRS brackets, which run from 10% to 37% depending on taxable income and filing status.
- Social Security tax: A flat 6.2% on wages up to $184,500 for 2026, capping out at $11,439 for the year.
- Medicare tax: 1.45% on all wages with no cap, plus an extra 0.9% once you cross $200,000 as a single or head of household filer, or $250,000 filing jointly.
- Louisiana state income tax: A flat 3% on Louisiana taxable income, after subtracting the standard deduction.
- Local income tax: None. Louisiana doesn’t permit cities or parishes to levy their own income tax.
- Pre-tax deductions: 401(k) contributions, HSA contributions, and employer health insurance premiums reduce your taxable wages before any of the above taxes are calculated.
How the 2024 Reform Rebuilt Louisiana’s Tax Code
Governor Jeff Landry called a special legislative session for November 2024 specifically to overhaul Louisiana’s tax structure, and lawmakers delivered fast. Voters approved Constitutional Amendment 2 that same month, and Landry signed the individual income tax bill into law on December 4, 2024, with the changes taking effect January 1, 2025. The old system taxed income at 1.85%, 3.5%, and 4.25% across three brackets. All of that collapsed into one flat 3% rate.
The reform didn’t stop at the rate. Louisiana also nearly tripled its standard deduction, from $4,500 to $12,500 for single filers and from $9,000 to $25,000 for joint filers, and those numbers now index for inflation starting in 2026. Personal exemptions of $4,500 per filer and $1,000 per dependent got repealed entirely, folded into the bigger standard deduction instead. The retirement and disability income exemption doubled from $6,000 to $12,000. And in a genuinely unusual move, Louisiana eliminated its own decades-old provision that let residents deduct the federal income tax they paid from their state return, a feature that had existed in almost no other state.
Louisiana’s Old vs New Individual Tax Structure
| Feature | Before 2025 | 2025 Onward |
|---|---|---|
| Tax rate | 1.85% to 4.25% (3 brackets) | Flat 3% |
| Standard deduction (Single) | $4,500 | $12,500 |
| Standard deduction (MFJ/HOH) | $9,000 | $25,000 |
| Federal tax deduction | Allowed | Eliminated |
| Retirement income exemption | $6,000 | $12,000 |
The state also repealed the automatic rate-reduction trigger law that had previously existed, meaning any further cuts to the 3% rate would now require new legislation rather than happening automatically when revenue targets are hit.
Louisiana vs Nearby States at $70,000 (Single)
| State | State Income Tax Owed | Estimated Net Pay |
|---|---|---|
| Louisiana | $1,725 | $56,350 |
| Arkansas | $2,212 | $55,863 |
| Mississippi | $2,400 | $55,675 |
| Texas | $0 | $58,075 |
Louisiana now beats both Arkansas and Mississippi on state income tax at this income level, a real shift from where things stood before the 2024 reform. Texas still wins outright since it has no income tax at all, but the gap between Louisiana and its no-tax neighbor is smaller than it used to be.
Louisiana’s Tax Trade-Offs
| Category | Louisiana | National Average |
|---|---|---|
| State income tax | Flat 3% | ~5.5% |
| Combined sales tax (avg) | 10.11% (highest in the U.S.) | ~7.5% |
| Effective property tax rate | 0.55% | ~1.0% |
| Estate/inheritance tax | None | Varies by state |
| Tax Foundation 2026 ranking | 31st overall | N/A |
The sales tax number is the real story here. Louisiana’s state rate rose to 5% on January 1, 2025, and once the state’s 64 parishes and hundreds of municipalities each layer on their own local rate, the average combined total hits 10.11%, officially the highest of any state in the country. Property taxes go the other direction entirely, sitting well below the national average, which softens the blow for homeowners even as shoppers pay more at checkout.
Retirees in Louisiana
Retirees came out ahead in the 2024 reform. Social Security remains fully exempt from state tax regardless of income, and the exemption for other retirement income, covering pensions, IRA distributions, and disability income, doubled from $6,000 to $12,000 per person. Combined with property taxes among the lowest in the country, Louisiana holds up reasonably well for retirees who aren’t heavy shoppers. The trade-off shows up at the register instead: anyone spending a significant share of income on taxable goods will feel Louisiana’s sales tax more than they would in most other states, retirees included.
Federal Tax Bracket Example: $70,000 Single Filer
Start with $70,000 in gross wages. Subtract the 2026 federal standard deduction of $16,100, leaving $53,900 in taxable income. Here’s how the brackets apply:
- 10% on the first $12,400 = $1,240
- 12% on the next $38,000 (from $12,400 to $50,400) = $4,560
- 22% on the remaining $3,500 (from $50,400 to $53,900) = $770
Total federal tax: $6,570, an effective rate of about 9.4% on gross pay. Add Louisiana’s flat 3% after its own standard deduction, and the combined federal-plus-state tax for this filer lands lighter than most Southern states with graduated brackets, even before factoring in what Louisiana makes up through sales tax instead.
Frequently Asked Questions
What is Louisiana’s state income tax rate in 2026?
A flat 3% on all Louisiana taxable income, in effect since January 1, 2025. Voters approved Constitutional Amendment 2 in November 2024, and Governor Jeff Landry signed the enabling legislation from a special legislative session that December, replacing the old graduated brackets that ran from 1.85% to 4.25%.
What is Louisiana’s standard deduction for 2026?
$12,500 for single filers and those married filing separately, and $25,000 for married couples filing jointly, heads of household, and qualifying surviving spouses. Both amounts nearly tripled from the old $4,500 and $9,000 figures, and they now adjust for inflation each year starting in 2026.
Did Louisiana eliminate the federal income tax deduction?
Yes. Louisiana used to let residents deduct the federal income tax they paid from their state taxable income, a provision that existed in almost no other state. That deduction was repealed starting with the 2025 tax year as part of the same reform that lowered the rate to a flat 3%.
Is Social Security taxed in Louisiana?
No. Louisiana fully exempts Social Security benefits from state income tax. The state also raised its retirement and disability income exemption from $6,000 to $12,000 as part of the 2024 reform.
Why is sales tax so high in Louisiana?
The state rate rose from 4.45% to 5% on January 1, 2025, and Louisiana’s 64 parishes and hundreds of municipalities each add their own local rate on top. The average combined rate lands at 10.11%, the highest of any state in the country according to the Tax Foundation.
Does Louisiana have an estate or inheritance tax?
No. Louisiana has neither an estate tax nor an inheritance tax, and property taxes here run well below the national average at an effective rate of about 0.55%.
Louisiana’s 2024 overhaul was a genuine trade, not a straightforward tax cut. Income earners came out ahead with a lower flat rate and a much bigger standard deduction, while the state made up ground by raising sales tax to the highest combined rate in the country. Which side of that trade favors you depends more on how much you spend than how much you earn.