Law & Legal & Attorney Tax Law

Louisiana State Tax Laws

    Who Must Pay

    • According to Louisiana tax law, Revised Statute 47:31, all residents of the state of Louisiana must pay taxes on their net income. Louisiana defines a resident as a person who has a permanent abode in the state or who spends six months of the taxable year in the state. Also, all non-resident individuals, corporations and domestic and foreign real estate investment trusts must pay taxes on their net income that is derived from Louisiana, unless otherwise exempted by another statute.

    Tax Rate

    • The tax rate for individuals in Louisiana, according to Revised Statute 47:32, is as follows: 2 percent of the first $12,500 after deductions, 6 percent of the next $37,500 and 6 percent of on any amount over $50,000 in net income. For corporations the following rates apply: 4 percent on the first $25,00 of net income, 5 percent on net income above $25,000 but less than $50,000, 6 percent on net income above $50,000 but less than $100,00, 7 percent on net income above $100,000 but less than $ 200,000, and 8 percent on net income above 200,000.

    Retirement Income

    • Revised Statute 47:44.1 exempts $6,000 of an individual's retirement income from taxation if the person is 65 or older. However, this does not include Social Security benefits, Federal retirement plans or retirement plans covered by the Railroad Retirement At of 1974; Revised Statute 47.44.2 exempts them.

    Failure to Pay

    • Any person required by law to file a state tax return in Louisiana and intentionally fails to do so, may face a fine of $5,000 and up to six months in jail unless he has written approval for the delay from the Louisiana Department of Revenue. These penalties will not apply if the taxpayer files within 90 days of the due date.

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