Louisiana paycheck guide
Louisiana's flat 3% tax after the 2025 overhaul
Louisiana rewrote its income tax starting with the 2025 tax year, and 2026 is the second year under the new rules. The graduated schedule is gone, and every dollar of taxable income is taxed at 3%. The same package raised the state sales tax, shifting part of Louisiana's revenue from paychecks to purchases.
The old personal exemption was replaced by a standard deduction that rises with inflation. For 2026 it is $12,875 for a single filer and $25,750 for a married couple filing jointly. That deduction is large compared with most flat-tax states, so lower earners pay a small share of income: 1.71% at $30,000, rising to 2.85% at $250,000.
Louisiana starts from federal adjusted gross income, so pre-tax 401(k), HSA, and health premium deductions reduce state tax as well as federal. The overhaul also expanded the exclusion for retirement income for residents 65 and older, which matters more for retirees than for workers.
Worked example: what $75,000 nets in Louisiana
A single filer earning $75,000 subtracts the $12,875 standard deduction, leaving $62,125 of Louisiana taxable income. At 3%, the state bill is $1,864, an effective rate of 2.49%.
Federally, the $16,100 standard deduction leaves $58,900 taxable. The first $12,400 is taxed at 10%, the next $38,000 at 12%, and the last $8,500 at 22%, for $7,670. Social Security withholding is $4,650 and Medicare $1,088. That leaves take-home pay of $59,728, or $4,977 a month. The Louisiana $75,000 salary page shows the same numbers per paycheck.
Federal tax is roughly four times the Louisiana bill at this salary, and FICA alone is larger than the state tax. At $150,000 the state takes $4,114, 2.74% of pay, and take-home pay is $109,677.
No local income tax on Louisiana wages
No Louisiana parish or city taxes wages. A paycheck in New Orleans, Baton Rouge, Shreveport, Lafayette, or Lake Charles has the same state and federal withholding at the same salary. Local governments in Louisiana rely on sales and property taxes instead, so the cost of living in a given parish shows up at the register rather than on your pay stub.
Louisiana also has no state disability insurance or paid family leave payroll deduction. A typical Louisiana pay stub shows federal income tax, Social Security, Medicare, and Louisiana income tax, plus whatever benefits you elect. That makes this page's estimate close to what most single filers actually see, as long as they have no pre-tax deductions.
Form L-4, remote work, and border commutes
Louisiana employers set state withholding from Form L-4, the Louisiana Employee Withholding Exemption Certificate, which is separate from the federal W-4. Louisiana revised the L-4 for the flat-tax system: instead of exemptions, it now asks which standard deduction to apply. If you never file one, your employer must withhold as if you claim no standard deduction, which takes more from every paycheck.
Louisiana has no reciprocity agreements. A Mississippi resident commuting from Gulfport or Picayune to a job in Slidell or New Orleans has Louisiana tax withheld, files a Louisiana nonresident return, and claims a credit in Mississippi. Texans who work in Shreveport or Lake Charles also owe Louisiana tax on those wages, with no home-state tax to offset it.
Louisiana next to Texas, Arkansas, and Mississippi
At $75,000, Louisiana's $59,728 take-home ranks 13th among the 50 states and DC, ahead of both neighbors that tax wages. Mississippi leaves $404 less, and Arkansas, even after cutting its top rate to 3.7%, leaves $423 less. See Louisiana vs Mississippi for the Gulf Coast commuter comparison.
Texas has no income tax, so the same worker keeps $61,592 there, $1,864 more than in Louisiana. For a household deciding between Shreveport and Marshall or between Lake Charles and Beaumont, that is the annual state income tax difference before sales and property taxes. Compare the two directly on Louisiana vs Texas.
What to expect at your income
Earning under $50,000
Louisiana's $12,875 standard deduction protects a large slice of lower incomes. A single filer earning $30,000 pays $514 in state tax, an effective rate of 1.71%, and at $50,000 the bill is $1,114, leaving $41,241 a year. A full-time hourly job grossing $41,600 a year costs $862 in Louisiana tax and nets $34,744. At this income, check that your L-4 claims the standard deduction; without it, your employer withholds as if you had none and you wait for a refund.
Earning $50,000 to $150,000
In the middle of the income range each extra dollar costs 3% in Louisiana tax, well below the 22% or 24% federal rate. At $100,000, Louisiana's share is $2,614, and a single filer's take-home pay is $76,566, or $6,381 a month. Married couples get a $25,750 deduction, so a couple at $100,000 pays $2,228. Contributions to Louisiana's START Saving Program 529 plan are deductible up to an annual limit per beneficiary.
Earning over $150,000
Louisiana's flat rate means high earners face no extra state bracket. At $250,000 a single filer pays $7,114 to Louisiana, an effective 2.85%, and takes home $176,068. Before 2025, the top dollars of a salary this size were taxed at a higher Louisiana rate, so the overhaul helped high earners most in dollar terms. The federal 32% bracket and the Additional Medicare Tax matter far more here than the state rate.
Louisiana paycheck tips
File a new Form L-4
If your L-4 predates the 2025 overhaul, replace it. The revised form matches the flat 3% system, and an old one can leave Louisiana withholding off target.
Mississippi commuters: file both returns
Working in Louisiana from Mississippi means a Louisiana nonresident return and a Mississippi resident return with a credit for Louisiana tax. Keep your W-2 state boxes straight.
Use the START 529 deduction
Louisiana's START Saving Program contributions are deductible on the Louisiana return up to an annual limit per beneficiary, lowering state tax at filing.
Factor in sales tax when you compare
Louisiana's paycheck tax is low, but its state and parish sales taxes are among the highest in the country. Weigh both when comparing a Louisiana offer with Texas.
Common mistakes
Using pre-2025 rules to estimate your refund
The brackets, personal exemptions, and some credits changed in 2025. Withholding tables and refund estimates built on the old system will not match your 2026 return.
Assuming Texas residents owe nothing on Louisiana work
Texas does not tax wages, but Louisiana does tax wages earned in Louisiana. A Texan working in Shreveport files a Louisiana nonresident return.
Moving to or from Louisiana
Moving to Louisiana
Moving to Louisiana from Arkansas or Mississippi usually lowers your state income tax, and you will not face a city or parish wage tax anywhere in the state. A single filer earning $75,000 pays $1,864 to Louisiana. Coming from Texas, expect that same $1,864 as a new cost, and budget for higher sales tax at the register.
Leaving Louisiana
Leaving Louisiana for Texas saves the $1,864 a $75,000 earner pays the state. Moving to Mississippi or Arkansas adds state tax at that salary, $404 more in Mississippi and $423 more in Arkansas. You file a Louisiana part-year resident return for the year you move and report the income earned while you lived there.