Income Tax Vs. Sales Tax
“Your taxes should be driven by what you choose to buy, rather than by your labor.”
— Governor Jeff Landry
The Simplicity of Sales Tax
Sales taxes are the simplest and fairest of all taxes because everyone pays. It doesn’t matter if you’re a Louisiana resident, a tourist, a special interest, a criminal, a tax cheater or someone here illegally…if you make a purchase, you’ll pay sales tax.
Sales taxes are simpler and more transparent than income taxes, allowing you to control what you pay based on your purchases. Additionally, sales taxes don’t penalize income, savings, or investment, promoting economic growth and expanding the tax base since everyone contributes. Sales taxes are a more straightforward method of taxation that provides a more stable source of revenue to fund our state. Sales taxes are paid by everyone making a taxable purchase in Louisiana, not just residents, and are added to the price at checkout.
More Money in your Paycheck
Governor Jeff Landry worked to deliver historic tax reform that lowered the individual income tax rate and simplified the system for Louisiana families and workers.
Under Governor Landry’s leadership, Louisiana replaced three individual income tax brackets of 1.85%, 3.5% and 4.25% with a single 3% flat rate beginning in 2025.
The reform also increased the standard deduction to $12,500 for individuals and $25,000 for married couples filing jointly, allowing Louisiana taxpayers to shield more of their income from state taxation.
The result: a simpler tax code, a lower top income tax rate, and more money staying in the pockets of Louisiana families.
State income taxes are directly deducted from your paycheck and only apply to Louisiana residents or a person’s paycheck when the work is done within the state. It’s difficult to determine if you’ve paid too much, or if you owe money at the end of the year. Income taxes involve complex brackets and deductions that often benefit those who have special interests and are politically connected. States that have lower, or no income taxes are thriving.
A Simpler Tax Code
Governor Landry’s tax reforms went beyond individual income taxes, making major changes to Louisiana’s broader tax structure.
Business Taxes
5.5% Flat Rate
Louisiana replaced its graduated corporate income tax rates with a single 5.5% rate.
FRANCHISE TAX
ELIMINATED
Louisiana repealed the corporate franchise tax, removing a longstanding tax on businesses operating in the state.
TAX CREDITS
STREAMLINED
Numerous tax credits, deductions and exemptions were eliminated or modified as part of the broader tax overhaul.
FARM EQUIPMENT
BIGGER EXEMPTION
The sales-tax exemption for qualifying farm equipment purchases increased from the first $50,000 to the first $150,000.
Our Tax Code is so Outdated, it still taxes these products.
Payphones
Phone Books
VCR Rentals
Fax Machines
Typewriters
Analog Broadcasting Equipment
Coin-Operated Laundries
Horse-Drawn Carriages
How much will you save?
Enter your details to find out how much you’ll save with Governor Jeff Landry’s tax cut plan.
Contact Your Legislator
It’s time to cut income taxes and streamline our outdated tax code. Contact your legislator to help us move Louisiana forward.