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Tax Breakdown
Deduction Breakdown
Louisiana State Income Tax Information
Effective January 1, 2025, Louisiana has implemented a flat personal income tax rate of 3.0% on all taxable income. :contentReference[oaicite:2]{index=2}
The standard deduction for single filers and those married filing separately has increased to $12,500, while for married couples filing jointly, qualifying surviving spouses, and head of household filers, it is $25,000. :contentReference[oaicite:5]{index=5}
Additionally, the exemption for annual retirement income received by individuals aged 65 or older has been raised from $6,000 to $12,000 per person. :contentReference[oaicite:8]{index=8}
Federal Income Tax
Federal income tax applies uniformly across all states. For 2025, federal rates range from 10% to 37%, with standard deductions of $15,000 for single filers and $30,000 for married couples filing jointly.
FICA Taxes
| Tax Component | Rate | Income Limit |
|---|---|---|
| Social Security | 6.2% | Up to $168,600 |
| Medicare | 1.45% | No Limit |
| Additional Medicare | 0.9% | Income above $200,000 (Single) / $250,000 (Married) |
Pre-Tax Deductions
Common pre-tax deductions available to Louisiana residents include:
- Contributions to 401(k), 403(b), and other retirement plans
- Health and dental insurance premiums
- Health Savings Account (HSA) and Flexible Spending Account (FSA) contributions
- Pre-tax transit and commuter benefits
Louisiana-Specific Deductions and Credits
| Credit or Deduction | Description |
|---|---|
| Personal Tax Credit | $40 credit per filer applied directly against tax liability |
| Dependent Care Credit | Tax credit for eligible dependent care expenses |
| Retirement Income Exclusion | Partial exclusion of certain retirement income for seniors |
Interesting Facts About Louisiana Taxes
- Louisiana is one of the few states with a flat income tax rate rather than progressive brackets.
- The income tax rate reduction scheduled for 2026 is part of the state’s plan to stimulate economic growth.
- The personal tax credit helps reduce the overall tax burden for many filers.
Frequently Asked Questions (FAQs)
- Does Louisiana have a progressive income tax?
- No, Louisiana uses a flat income tax rate of 3% as of 2025.
- Are there local income taxes in Louisiana?
- No, Louisiana does not impose additional local income taxes.
- What deductions are allowed on Louisiana state taxes?
- The state allows a standard deduction of $12,500 and various credits such as personal tax credits and dependent care credits.
- Will Louisiana’s income tax rate change soon?
- Yes, it will decrease to 2.5% starting January 1, 2026.