Louisiana State Income Tax in 2025: A Guide

Louisiana’s graduated state individual income tax means tax rates increase as taxable income rises. This will change in 2026 when you do your tax year 2025 tax return, as Louisiana plans to switch to a flat tax rate of 3%.   

For the 2024 tax year (the taxes you’ll file in 2025), your state income tax liability depends on several factors, including taxable income, filing status, and eligibility for deductions and credits. For Louisiana residents and those earning income from sources within the state, understanding these variables can help you prepare for filing and possibly reduce the taxes you owe.  

Let’s dive into the tax system of the Pelican State and what you need to know to file confidently. 

*Note you are still responsible for federal taxes if you meet the IRS income filing threshold. This article addresses Louisiana state-specific tax returns only. 

Louisiana state income tax rates

For tax year 2024, Louisiana’s graduated income tax system has three tax brackets: 1.85%, 3.5%, and 4.25%, depending on your income level and filing status. For the 2024 tax year, Louisiana income tax returns are due by May 15, 2025.  

Louisiana will soon implement a flat state income tax of 3% after passing broad tax reform measures in late 2024. The changes, which also include corporate tax cuts and a temporary sales tax increase, take effect January 1, 2025, meaning they’ll apply to income earned in 2025 and be reflected during the 2025 filing season. 

Here are the 2024 tax year tax brackets and rates for various filing statuses to better help you understand your state income tax obligations. 

Filing Status	Taxable Income	Tax Rate
Single or Married Filing Separately	$0 – $12,500	1.85%
	$12,501 – $50,000	3.50%
	Over $50,000	4.25%
Married Filing Jointly or Head of Household	$0 – $25,000	1.85%
	$25,001 – $100,000	3.50%
	Over $100,000	4.25%

Source: Louisiana Department of Revenue

What is the standard deduction in Louisiana?

The standard deduction reduces your income tax liability, or the amount of income subject to Louisiana state taxes. Taxpayers can use this deduction to simplify their tax filing process and lower their taxable income without itemizing expenses. Here’s how the state standard deduction applies for the 2024 tax year. 

• Single filers with two or fewer exemptions: $4,500 plus 1,000 per additional exemption. This will change to $12,500 in tax year 2025.
• Married filing jointly with two or fewer exemptions: $9,000 plus 1,000 per additional exemption. This will change to $25,000 in tax year 2025.

The standard deduction streamlines your tax return while ensuring you benefit from a predetermined reduction in taxable income. That’s a benefit for people who don’t have a lot of itemizable expenses.  

Taxpayers have a choice of using the standard deduction or itemizing deductions. Itemizing  involves listing individual eligible deductions (such as mortgage interest, state taxes, medical costs, and charitable donations) on your tax return to reduce your taxable income. Taxpayers would choose to itemize deductions if the total of these deductions exceeds the standard deduction.

Who has to file Louisiana state income tax?

Louisiana requires all individuals who file a federal income tax return to file a state income tax return. That includes residents, part-year residents, and nonresidents who earn income from Louisiana sources. Additionally, military residents whose Home of Record is Louisiana must file a state return, regardless of where they’re stationed. 

Let’s investigate how residency in Louisiana impacts your tax filing requirements.

How Louisiana residency impacts tax filing

Louisiana’s residency includes three statuses for tax purposes: resident, part-year resident, and nonresident. Each determines how your income is taxed and which forms you need to file. The following table outlines each residency status, definition, and tax treatment. 

Residency status	Definition	How Louisiana taxes income
Resident	You lived in Louisiana, maintained a permanent place of abode in the state, or spent more than six months of the tax year in Louisiana.	You’re taxed on all income, regardless of source.
Part-year resident	You established or terminated residency in Louisiana, which lasted six months or less during the tax year.	You’re taxed on all income earned while a resident and any Louisiana-sourced income during nonresidency.
Nonresident	You didn’t live in Louisiana during the tax year but earned income from Louisiana sources.	You’re taxed only on income from Louisiana sources.

Other income tax considerations in Louisiana

Louisiana’s tax system includes specific rules for various income types that can affect your overall tax liability. These different income categories are as follows: 

• Retirement and pension income: Those over 65 can exclude up to $6,000 of retirement income. This exemption will increase to $12,000 for tax year 2025. Federal retirement benefits and certain state retirement benefits are also exempt. 
• Investment income: Capital gains are taxed at the same rate as personal income. 
• Social Security income: Louisiana does not tax Social Security income. 
• Military income: Non-domiciled military personnel are exempt from Louisiana taxes on military wages. Military personnel with nonmilitary Louisiana income must report it.

Louisiana state tax deductions and credits

Louisiana also offers various tax deductions and credits to help taxpayers reduce state income tax liability. The following chart provides a brief overview of these popular incentives: 

Tax Credit	Description	Amount
Earned Income Tax Credit (EITC)	Provides financial relief to low- and moderate-income working individuals and families	5% of the federal credit; maximum federal credit for tax year 2024 is $7,830
Child and Dependent Care Tax Credit (CDCTC)	Helps offset child care expenses for working parents	Federal Adjusted Income of $25,000 or less: Refundable credit of up to 50% of the federal credit  Federal Adjusted Income over $25,000: Non-refundable credit up to 30% of the federal credit
Recreation Volunteer Exclusion	Exclusion for taxpayers  volunteering with a recreation department	$500 for 30+ volunteer hours
Volunteer Firefighter Exclusion	Exclusion for volunteer firefighters	$500
Elementary and Secondary School Tuition Deduction	Tuition expenses for a dependent in elementary and secondary school	50% of expenses up to $12,000, deduction up to $6,000 per dependent
Digital Nomad Exclusion	Exclusion for registered taxpayers who established residency after December 31, 2021	50% of gross wages, up to $150,000 for a period up to two years
Stillborn Child Credit	Credit for taxpayer who experience pregnancy loss	$2,000
Adoption of Unrelated Infant Credit	Credit for adopting an unrelated infant under three	$5,000

How to file Louisiana state income tax

Understanding how residency, deductions, and credits impact your Louisiana tax return can feel overwhelming. But it doesn’t have to. TurboTax can guide you through each step. Whether you want to do your taxes yourself or have a tax expert file for you, we’ve got you covered. 

We simplify filing and help you get every deduction and credit you’re eligible for. Keeping more of your hard-earned money in your pocket.  

If you prefer local help from Louisiana tax experts, look no further. Connect with a TurboTax pro in Louisiana anytime.