Louisiana rewrote its income tax in 2025, replacing graduated brackets with a flat 3% and a standard deduction of $12,875. It is now one of the lightest income tax regimes in the country — and one of the heaviest sales tax regimes.
| Gross pay | — |
| Federal income tax | — |
| Social Security6.2% up to $184,500 | — |
| Medicare1.45%, no cap | — |
| State income tax | — |
| 401(k) contribution | — |
| Health and HSA | — |
Useful if you are comparing a job that pays monthly against one that pays every two weeks, or working out what a raise is worth per paycheck.
| Pay schedule | Gross | Take-home |
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Louisiana previously ran a three-bracket system topping out at 4.25%, paired with a deduction for federal income tax paid. The reform package, enabled by a constitutional amendment approved by voters, replaced that with a single 3% rate and eliminated the federal deduction.
The trade was deliberate: a simpler, lower headline rate in exchange for a broader base. For most wage earners the net effect was a reduction, because the new standard deduction of $12,875 for a single filer and $25,750 for a couple is far larger than anything Louisiana previously offered.
At $55,000 a single filer is taxed on $42,125 at 3%, producing a state bill of about $1,264 — an effective rate of 2.3% on gross wages, among the lowest of any state that taxes income.
Louisiana has consistently had among the highest combined state and local sales tax rates in the United States. The state rate is layered with parish and municipal rates that push the combined figure above 9% across much of the state and higher in places.
For a household spending most of its income, that offsets a large share of the income tax saving. For a higher earner who saves and invests a meaningful proportion, the low flat income tax wins comfortably. Which side of that line you fall on determines whether Louisiana is actually a low-tax state for you.
Louisiana uses parishes rather than counties, but none of them levies an income tax — the local burden is entirely on the sales tax side.
Social Security is exempt. Louisiana also exempts federal retirement income and state and local government pensions in full, which given the size of the federal and state workforce in the region reaches a substantial number of retirees.
Private pension and retirement account income receives a more limited exclusion available from age 65.
Yes. A 2025 reform replaced the graduated brackets with a flat 3%, introduced a large standard deduction, and eliminated the deduction for federal income tax paid.
No. That provision was removed as part of the flat-tax reform, in exchange for the lower rate and the larger standard deduction.
On income, yes — about as low as any state that taxes wages. On sales tax, it is consistently among the highest in the country. Which matters more depends on what share of your income you spend.
Federal, state and local government pensions are exempt in full. Private retirement income receives a more limited exclusion from age 65.