Louisiana State Taxes

Louisiana Income Tax

For tax years beginning on or after January 1, 2025, the individual income tax rate is a flat 3%. Previously, Louisiana had three graduated income tax brackets with a top rate of 4.25%.

Who Must File?

Full-year, part-year, and non-residents who earn income from Louisiana sources and are required to file a federal income tax return must also file a Louisiana individual income tax return. Louisiana income tax returns are due on or before May 15 (after the federal filing deadline). For taxpayers who use a fiscal tax year, the return and payment (if applicable) are due on the 15^th day of the fifth month after the close of the fiscal year.

Part-year and non-residents should use IT-540B to report income earned from Louisiana sources. Professional athletes from the associations below are also required to file as a non-resident when earning income from Louisiana sources.

• PGA Tour, Inc.
• Professional Golfers Association of America
• National Football League (NFL)
• National Basketball Association (NBA)
• National Hockey League (NHL)
• East Coast Hockey League
• Pacific Coast League

This includes money earned from endorsements, royalties, and promotional advertising.

Louisiana Sales Tax

Since 2018, Louisiana has had a state sales tax rate of 4.45%. In 2025, however, it increased to 5%. Although this is still relatively low compared to other states, when combined with local sales tax rates, it can reach as high as 13%.

Louisiana Property Taxes

Louisiana has one of the lowest property tax rates in the country at an average of just .55%.

The median property tax in Louisiana is approximately $1,087 annually. Orleans Parish has the highest property tax at an average of $2,226. The lowest amount is $221 in Madison Parish.

Louisiana Property Tax

Highest	$2226
Median	$1087
Lowest	$221

Yearly Cost Per Resident

Louisiana Tax Holidays

Louisiana holds a Second Amendment Weekend Sales Tax Holiday on the first consecutive Friday through Sunday of each September. During that period, state and local sales tax is exempted on any consumer purchase of firearms, ammunition, and hunting supplies.

Louisiana Tax Relief

When Louisiana income taxes go unpaid, the amount you owe can grow as penalties and interest accumulate. The Louisiana Department of Revenue (LDR) may also pursue collection efforts when a tax balance remains unresolved. Whether you’re facing delinquent returns, a financial setback, or outstanding business tax obligations, taking action sooner may help prevent your tax situation from becoming more complicated.

If you’re unable to pay your Louisiana tax balance in full, you may have options for resolving what you owe. Based on your circumstances and eligibility, you may be able to arrange an installment agreement or pursue an Offer in Compromise. Addressing your account before collection efforts progress may also help you avoid or resolve enforcement actions such as tax liens, wage garnishments, and bank levies.

Becoming familiar with Louisiana’s tax collection process and available resolution options can help you make informed decisions about how to move forward. Exploring your options early can put you on a clearer path toward resolving your outstanding Louisiana tax balance.

Common Louisiana State Tax Problems

How Louisiana Collects Tax Debt

If you owe Louisiana income taxes, the state will issue a notice explaining the amount due, the reason for the liability, as well as your options for resolving the balance.

If you do not pay or respond, the Louisiana Department of Revenue may take one or more of the collection actions allowed by law:

• Wage garnishment
• Bank levy
• Tax lien
• Tax refund offset
• Driver’s license suspension
• Hunting & fishing license suspension

The state may also refer your account to an outside collection agency.

Tax notice sent to taxpayer

Wage Garnishment & other collections

Referral to outside collections agency

Louisiana State Tax Relief Options

Louisiana offers a few relief options, including:

• Payment Plans – Depending on the amount you owe and the status of your account, you may qualify for a payment plan.
• Offer in Compromise – An Offer in Compromise allows taxpayers to settle their Louisiana tax debt for less than they owe. You must demonstrate financial hardship, and approval is not guaranteed.
• Penalty Waiver – A penalty waiver may be requested after all tax and interest have been paid.

If you’re experiencing financial hardship and can’t pay your Louisiana income tax bill, contact the Department of Revenue as soon as possible to avoid collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Louisiana Tax Relief FAQs

How do I set up an Louisiana payment plan?

If you owe a tax debt to the state of Louisiana and cannot pay the balance in full, you may be eligible to establish a payment plan.

To apply, log in to LaTAP and select the account with the outstanding balance. Select the available payment plan option and enter your banking information. Available options depend on the amount you owe and the status of your account.

What happens if I ignore Louisiana tax notices?

If you don’t pay your Louisiana income taxes and ignore repeated notices, the state may garnish your wages, file a tax lien, seize your property (levy), or suspend your licenses (driver’s, fishing, etc.). They may also seize future tax refunds (offset).

Can Louisiana garnish my wages for unpaid taxes?

Yes, Louisiana can garnish up to 25% of your weekly disposable income.

Can Louisiana levy my bank account?

Yes. The state can seize funds from financial institutions and your bank.

How long does Louisiana have to collect back taxes?

Louisiana generally has 10 years from the date of tax liability to actively collect the debt. If you never filed or submit a fraudulent return, there is no time limit – they can pursue the debt indefinitely.

Louisiana Tax Resources

If you need assistance preparing your Louisiana state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the Louisiana Department of Revenue website for additional resources.

• Make a Tax Payment
• Where’s My Refund?
• Individual Tax Forms
• Taxpayer Assistance (Baton Rouge Headquarters): 855-307-3893