Calculate your 2026 Louisiana state income tax at the new flat 3% rate (effective Jan 2026). Includes $12,500 standard deduction and $4,500 dependent exemptions. Compare old vs new system.
Louisiana's New 3% Flat Income Tax (2026)
Starting January 1, 2026, Louisiana switched to a flat 3% income tax rate on all taxable income. The reform also increased the standard deduction to $12,500 (single) and $25,000 (MFJ), and maintained the $4,500 dependent exemption.
The Formula
LA Taxable Income = Gross Income โ Standard Deduction โ (Dependents ร $4,500)
LA Tax = LA Taxable Income ร 3%
Standard Deduction: $12,500 (single) | $25,000 (MFJ) | $12,500 (MFS) | $12,500 (HoH)
Example: Single filer, $70,000 income, 0 dependents
LA taxable: $70,000 โ $12,500 = $57,500
LA tax: $57,500 ร 3% = $1,725
LA effective rate: 2.46% | Federal tax (22% bracket): approx. $9,500
Under OLD system (4.25% top bracket): approx. $2,285 โ new law saves $560/yr
Frequently Asked Questions
What is Louisiana's new flat income tax rate for 2026?
Louisiana enacted a new flat income tax rate of 3% effective January 1, 2026 (Act 1 of the 2024 Third Special Session). This replaced the former three-bracket progressive system (1.85%, 3.5%, 4.25%). All income above the standard deduction and personal exemptions is now taxed at a single flat rate of 3%, making tax calculation much simpler.
What is the Louisiana standard deduction for 2026?
Under the new flat tax system, Louisiana provides a standard deduction of $12,500 for single filers and $25,000 for married filing jointly (2026). These amounts were significantly increased from prior law as part of the tax reform package. Taxpayers can still itemize state deductions if their allowable itemized deductions exceed the standard deduction amount.
Does Louisiana allow personal exemptions?
Yes. Louisiana allows a personal exemption of $4,500 per dependent (2026). This is a deduction from income, not a credit. For example, a family with two dependents can deduct $9,000 from taxable income. The personal exemption for the taxpayer themselves is incorporated into the standard deduction under the new reform.
How does the new Louisiana flat tax compare to the old progressive brackets?
Under the old system (before 2026): 1.85% on first $12,500, 3.5% on $12,500โ$50,000, and 4.25% on income above $50,000 (single). Under the new flat 3% system: all income above the $12,500 standard deduction is taxed at 3%. Lower-income earners may pay slightly more, while higher-income earners (previously in the 4.25% bracket) pay significantly less. The 3% flat rate is one of the lowest in the country.
Does Louisiana have a sales tax?
Yes. Louisiana has a state sales tax rate of 4.45% plus local sales taxes that vary by parish, with combined rates often reaching 9โ10%. Louisiana's combined average sales tax rate is among the highest in the US. When evaluating Louisiana's overall tax burden, the low flat income tax should be considered alongside these relatively high sales taxes.