Louisiana State Income Tax ranges from 1.85% to 4.25%, slightly lower than the national average. This is based on the amount of income you make minus all tax credits. However, Louisiana has the second-highest combined rate in the country when combined with local sales tax rates. Failure to pay your tax could result in a penalty and/or prosecution for tax evasion. In addition to personal income tax, the state also collects business and franchise taxes. Pass-through entities (S corporations and partnerships) can elect to pay tax at the entity level instead of at the individual level. Anyone who works in Louisiana or has earnings from sources like investments and rental income is taxable by the state. Nonresidents are taxable if they work more than 25 days in the state during a calendar year.
You can file and pay your state income taxes online at the Department of Revenue website. The site offers a free account to store all your tax-related documents and makes it easy to access them anytime. It also offers a variety of payment options.
How to File Louisiana State Income Tax?
Louisiana law requires residents to file a state income tax return (Form IT-540) reporting all taxable income. This includes residents of other states who earn income from Louisiana sources. Taxpayers who are unsure of their filing status should file a return. Resident taxpayers can claim credit for taxes paid to another state on Schedule G of their Louisiana return. Military personnel who are stationed in Louisiana are considered resident taxpayers for individual income tax purposes, regardless of their place of domicile for federal income tax purposes.
Revised Statute 47:103 provides that an automatic six-month extension of time to file an individual income tax return is granted upon request. This extension can be e-filed.
The department advises taxpayers to file both federal and state returns at the same time if possible. This will help to prevent any discrepancies between the two returns.
You can file and pay your state income taxes online at the Department of Revenue website. The site offers a free account to store all your tax-related documents and makes it easy to access them anytime. It also offers a variety of payment options.
Louisiana State Income Tax Due Dates
Louisiana state’s income tax filing deadline is May 15, which falls about a month after the typical April 15 federal tax return deadline. If you receive W-2 income from a Louisiana employer, your LA income taxes will be automatically deducted from your paycheck.
Louisiana State Income Tax Exemptions
The Pelican State offers a number of tax deductions, including a school expense deduction and a military income deduction. Taxpayers can also claim the amount of their federal itemized deductions, less the allowable federal standard deduction for their filing status.
Other notable tax provisions include a credit for childcare expenses and a credit for property purchased within a National Register Historic District. Louisiana also exempts Social Security benefits and income from state employees and teachers’ retirement systems, among other things.
A financial advisor can help you understand how your state and local taxes impact your finances and overall financial goals.