How to compute la-income-tax for Louisiana, tax year 2025: rates, thresholds, and step-by-step rules with primary-source citations.
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Flat income tax rate (TY2025 and after)
3.00%Act 11 (H.B. 10, 2024 3rd Extraordinary Session); La. R.S. 47:32 (as amended)
Graduated income tax rate — Bracket 1 (TY2024 and prior)
1.85%La. R.S. 47:32 (prior law)
Graduated income tax rate — Bracket 2 (TY2024 and prior)
3.50%La. R.S. 47:32 (prior law)
Graduated income tax rate — Bracket 3 (TY2024 and prior)
4.25%La. R.S. 47:32 (prior law)
Standard deduction — Single (TY2025)
$12,500Act 11 (H.B. 10, 2024 3rd Extraordinary Session); La. R.S. 47:293
Standard deduction — Married Filing Separately (TY2025)
$12,500Act 11 (H.B. 10, 2024 3rd Extraordinary Session); La. R.S. 47:293
Standard deduction — Married Filing Jointly (TY2025)
$25,000Act 11 (H.B. 10, 2024 3rd Extraordinary Session); La. R.S. 47:293
Standard deduction — Head of Household (TY2025)
$25,000Act 11 (H.B. 10, 2024 3rd Extraordinary Session); La. R.S. 47:293
Standard deduction — Qualifying Surviving Spouse (TY2025)
$25,000Act 11 (H.B. 10, 2024 3rd Extraordinary Session); La. R.S. 47:293
Standard deduction — Single/MFS (prior law, pre-TY2025)
$4,500La. R.S. 47:293 (prior law)
Standard deduction — MFJ/HoH (prior law, pre-TY2025)
$9,000La. R.S. 47:293 (prior law)
Standard deduction CPI adjustment — first applicable year
Annually adjusted for CPI beginning January 1, 2026Act 11 (H.B. 10, 2024 3rd Extraordinary Session)
Personal exemptions — repealed effective TY2025
Repealed; $0 (previously $1,000 for age 65+, blind, and dependents)Act 11 (H.B. 10, 2024 3rd Extraordinary Session)
Retirement income exemption — age 65+ (TY2025)
Up to $12,000 per yearLa. R.S. 47:44.1
Retirement income exemption CPI adjustment — first applicable year
Annually adjusted for CPI beginning in 2026Act 11 (H.B. 10, 2024 3rd Extraordinary Session)
Social Security benefits exemption
Fully exemptLa. R.S. 47:44.2
U.S. government bond / obligation interest exemption
Fully exemptLa. R.S. 47:293(6)
Out-of-state bond interest — addition to income
100% of interest on bonds of other states added backLa. R.S. 47:293(4)
Federal income taxes paid — subtraction (deductibility)
Louisiana allows a deduction for federal income taxes paid (treatment under 2025 reform — verify)La. R.S. 47:293(3)
Federal Section 199A QBI deduction — Louisiana treatment
Not allowed; Louisiana starts from federal AGI (before QBI deduction)La. R.S. 47:293; La. R.S. 47:21 et seq.
Louisiana individual income tax return filing deadline (TY2026)
May 15, 2027La. R.S. 47:21 et seq.; LDR Form IT-540 Instructions
Louisiana individual income tax return annual deadline
May 15 (not April 15)La. R.S. 47:21 et seq.; LDR Form IT-540 Instructions
Estimated tax payment threshold — self-employed
$1,000 or more expected to be owedLa. R.S. 47:116 et seq.; Form IT-540ES
Estimated tax — 1st quarter due date
April 15La. R.S. 47:116 et seq.; Form IT-540ES
Estimated tax — 2nd quarter due date
June 15La. R.S. 47:116 et seq.; Form IT-540ES
Estimated tax — 3rd quarter due date
September 15La. R.S. 47:116 et seq.; Form IT-540ES
Estimated tax — 4th quarter due date
January 15 (following year)La. R.S. 47:116 et seq.; Form IT-540ES
Louisiana income tax formula
Federal AGI + additions − subtractions − standard deduction = Louisiana taxable income × 3% = Louisiana income taxLa. R.S. 47:293; La. R.S. 47:32 (as amended by Act 11)
Primary return form — Louisiana resident individual income tax
Form IT-540La. R.S. 47:21 et seq.; LDR Form IT-540 Instructions
Estimated tax payment form
Form IT-540ESLa. R.S. 47:116 et seq.; LDR Form IT-540ES
Form IT-540 Line 7 — Federal AGI
Federal AGI (Form 1040, Line 11)LDR Form IT-540 Instructions
Form IT-540 Line 8 — Louisiana standard deduction
$12,500 (Single/MFS) or $25,000 (MFJ/HoH/QSS)La. R.S. 47:293; Act 11; LDR Form IT-540 Instructions
Form IT-540 Line 11 — Louisiana income tax computation
Line 10 (Louisiana taxable income) × 3%La. R.S. 47:32 (as amended); LDR Form IT-540 Instructions
Scope. This skill covers Louisiana Form IT-540 (Resident Individual Income Tax Return) for sole proprietors and single-member LLCs. It addresses the flat 3% income tax rate (effective 2025), the significantly increased standard deduction, and Louisiana-specific modifications to federal AGI. It does NOT cover nonresident returns (Form IT-540B), corporate returns (CIFT-620), or partnership/S-corp pass-throughs.
Quality tier. Q3 — AI-drafted, not independently verified. All outputs must be reviewed by a qualified tax professional before filing.
Metadata table
| Field | Value |
|---|---|
| Jurisdiction | Louisiana (US-LA) |
| Tax authority | Louisiana Department of Revenue (LDR) |
| Filing portal | Louisiana File Online |
| Legislation | La. R.S. 47:21 et seq.; Act 11 of the 2024 Third Extraordinary Session |
| Primary form | Form IT-540 (Louisiana Resident Individual Income Tax Return) |
| Filing deadline | May 15, 2027 (for tax year 2026) — Louisiana uses May 15, not April 15 |
| Version | 0.1 |
| Date | May 22, 2026 |
| Validation status | AI-drafted — Q3 |
State income tax rate table
| Tax year | Rate | Source |
|---|---|---|
| 2024 and prior | Graduated: 1.85% / 3.50% / 4.25% | La. R.S. 47:32 (prior law) |
| 2025 and after | Flat 3.00% | Act 11 (H.B. 10, 2024 3rd Extraordinary Session) |
Standard deduction table
| Filing status | Amount |
|---|---|
| Single | $12,500 |
| Married Filing Separately | $12,500 |
| Married Filing Jointly | $25,000 |
| Head of Household | $25,000 |
| Qualifying Surviving Spouse | $25,000 |
Additions to income table
| Item | Description | Source |
|---|---|---|
| Out-of-state bond interest | Interest on bonds of other states must be added | La. R.S. 47:293(4) |
| Federal income tax deducted | Louisiana historically allowed a deduction for federal taxes; under the reformed law, verify if this continues to apply | La. R.S. 47:293 |
| IRC decoupling items | Any areas where Louisiana decouples from federal tax code changes | La. R.S. 47 |
Subtractions from income table
| Item | Description | Source |
|---|---|---|
| U.S. government interest | Interest on U.S. obligations | La. R.S. 47:293(6) |
| Social Security benefits | Louisiana exempts Social Security | La. R.S. 47:44.2 |
| Federal income taxes paid | Louisiana allows a deduction for federal income taxes paid (may be limited under new law — verify) | La. R.S. 47:293(3) |
| Retirement income | Up to $12,000 for taxpayers age 65+ | La. R.S. 47:44.1 |
| Military pay | Active-duty military compensation exclusion | La. R.S. 47:293 |
Important: Louisiana has historically allowed a deduction for federal income taxes paid, which is unusual among states. Under the 2025 reform, confirm the current treatment of this deduction.
Estimated tax payment due dates
| Voucher | Due date |
|---|---|
| 1st quarter | April 15 |
| 2nd quarter | June 15 |
| 3rd quarter | September 15 |
| 4th quarter | January 15 (following year) |
Tier 1 rules table
| Rule | Description |
|---|---|
| R-1 | Apply the flat 3% rate to Louisiana taxable income. No brackets for TY2025+. |
| R-2 | Start from federal AGI and apply Louisiana modifications. |
| R-3 | Subtract the standard deduction ($12,500 single/MFS; $25,000 MFJ/HoH/QSS for TY2025). |
| R-4 | Social Security benefits are fully exempt. |
| R-5 | U.S. government bond interest is exempt. |
| R-6 | Retirement income exemption: up to $12,000 for age 65+. |
| R-7 | The filing deadline is May 15, NOT April 15. |
| R-8 | Prior personal exemptions ($1,000 for age 65+, blind, dependents) were repealed by Act 11 for TY2025+. |
| R-9 | Standard deduction is adjusted annually for CPI beginning in TY2026. |
Tier 2 rules table
| Rule | Description |
|---|---|
| J-1 | Determine the current-year treatment of the federal income tax deduction under the reformed law. |
| J-2 | Evaluate whether itemized deductions exceed the increased standard deduction (less likely under the new $12,500/$25,000 amounts). |
| J-3 | Assess IRC conformity for any areas where Louisiana decouples from recent federal changes. |
| J-4 | Determine the CPI-adjusted standard deduction and retirement exemption amounts for TY2026+. |
| J-5 | Evaluate credit for taxes paid to other states for multi-state taxpayers. |
Supplier pattern library table
| Pattern | Louisiana treatment |
|---|---|
| Freelance income (Schedule C) | Flows through federal AGI → LA taxable income. Subject to flat 3% state tax. |
| Rental income (Schedule E) | Flows through federal AGI → LA taxable income. Subject to flat 3%. |
| Capital gains | Fully taxable at the flat 3% rate. |
| Interest / dividends | Taxable except U.S. government obligations (exempt). |
| Social Security | Fully exempt. |
| Retirement distributions | Up to $12,000 exempt for age 65+; remainder taxable at 3%. |
Form mapping table
| Form IT-540 line | Description | Source |
|---|---|---|
| Line 7 | Federal AGI (Form 1040, Line 11) | Federal return |
| Line 8 | Louisiana standard deduction ($12,500 or $25,000) | La. R.S. 47:293; Act 11 |
| Line 9 | Adjustments and modifications | La. R.S. 47:293 |
| Line 10 | Louisiana taxable income | Computed |
| Line 11 | Louisiana income tax (Line 10 × 3%) | La. R.S. 47:32 (as amended) |
| Lines 12–19 | Credits (nonrefundable and refundable) | Various |
| Lines 20–25 | Payments, withholding, estimated payments | Various |
| Line 30 | Balance due or refund | Computed |
Refusal catalogue table
| Code | Situation | Action |
|---|---|---|
| REF-LA-01 | Taxpayer is a nonresident or part-year resident | Refuse; requires Form IT-540B. |
| REF-LA-02 | Taxpayer has complex federal income tax deduction computations | Flag for reviewer — interaction between federal and state deductions requires specialist analysis. |
| REF-LA-03 | Taxpayer has partnership or S-corp K-1 with Louisiana-specific adjustments | Flag for reviewer. |
| REF-LA-04 | Taxpayer claims complex credits (e.g., LA Historic Rehabilitation, Motion Picture, Enterprise Zone) | Flag for reviewer — separate forms required. |
| REF-LA-05 | Taxpayer needs CPI-adjusted amounts for TY2026+ | Flag for reviewer — confirm published inflation-adjusted figures. |
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