Tax Relief
Lower Taxes = Stronger Economy
How Much Will You Save?
Enter your details to find out how much you’ll save with Governor Jeff Landry’s Tax Cut Plan.
Moving Louisiana Forward
Louisiana Delivered Historic Tax Reform.
5 Reasons For Modernizing Our Tax Code
Immediate Increase in Take-Home Pay, More Money in Your Wallet
End Local Tax On Prescription Drugs
Tax-Free Income for Married Seniors with a Combined $50,000 Income. $25,000 for Singles.
First $25,000 in Income is Tax-Free for Married Couples
Second Lowest Individual and Corporation Income Tax Rates in the Nation
"Louisiana has a failing tax system that has put us at the bottom. We have been on the losing end of an economic game and other states are beating us. Today, we have an opportunity to change that playbook so Louisiana can start winning!"
Governor Jeff Landry
The road to zero income tax
States That Are Winning Have Lower Income Taxes That Fuel Economic Growth
- 0% Income Tax
- Flat Income Tax
- Texas ranks 1st in "Best States for Business," highlighting its strong appeal among business leaders, while Florida takes the 2nd spot, reflecting high confidence from CEOs in the state’s business environment. Meanwhile, Louisiana falls short by ranking 40th in the nation.
States with flat or zero income taxes foster stronger economic performance by increasing residents’ take home pay, attracting businesses, and encouraging population growth. The simplified tax structure reduces bureaucracy and boosts economic competitiveness, creating an economy that fuels job creation and investment.
States that have seen major growth in population in the past decade are:
- Texas - Increased Population by 19%
- North Carolina - Increased Population by 11.7%
- Florida - Increased Population by 18%
Making Taxes Simpler
Lower Income Taxes
Rates are going down for all Louisianans. Whether you’re a business owner, family, or a single person just getting started, you will see more money in your pocket.
A Broader Tax Base Is A Fairer Tax Base
By removing exemptions on special interests, we are ensuring that everyone pays their fair share! This means more stable revenue for prolonged investment in schools, healthcare, and infrastructure—without placing a bigger burden on families.
A Path to A Zero Percent Income Tax
This reform is a crucial first step toward eliminating income tax in Louisiana. We are committed to lowering income taxes gradually, with the ultimate goal of zero income tax, just like Texas and Florida. This will transform Louisiana into an attractive place for businesses and families to thrive.
The Work Continues!
Our current tax system is outdated and unfair, it has too many special interest loopholes everyday Louisianans pay for. This also keeps businesses from investing in Louisiana and growing our economy. Here’s why we must act now to ensure long-term fiscal stability and one of the nation’s most competitive tax codes.
Keep Lowering Income Taxes
Louisiana’s 3% flat income tax was a major first step. Governor Landry’s long-term goal remains eliminating the state income tax altogether.
Keep the Tax Code Simple
Keep Louisiana Competitive
frequently asked questions
What is the purpose of the new tax reform?
The tax reform aims to simplify Louisiana’s tax system by broadening the tax base, eliminating loopholes and lowering rates. It is designed to make the system fairer, reduce the burden on families and small businesses, and set the state on a path toward economic growth and prosperity.
How does this reform benefit residents and businesses?
The reform lowers income tax rates for both individuals and businesses, allowing everyone to keep more of what they earn. Additionally, it broadens the tax base to include services and digital products, creating a more stable revenue source for essential services like schools and healthcare.
What does “broadening the tax base” mean?
Broadening the tax base means including more goods and services under the sales tax to ensure everyone pays their fair share. This approach reduces the need for high-income taxes and helps fund critical programs without placing a bigger burden on families.
Will this tax reform impact low-income families?
No. The reform includes measures to protect low-income households, such as doubling the standard deduction for seniors and increasing deductions for low-income families. Essential items, such as prescription drugs, will continue to be exempt from state sales tax to maintain affordability and will now also be exempt from local sales tax, eliminating the additional local tax burden.
For the lowest-income families, 20% of those who currently pay state income taxes will no longer have any tax liability, providing significant financial relief to households most in need.
Is Louisiana eliminating the state income tax?
Not yet, but this reform is the first step toward that goal. Governor Jeff Landry’s vision is to gradually reduce and eventually eliminate state income tax, similar to states like Texas and Florida, making Louisiana a more attractive place to live and do business.
What will happen to outdated tax exemptions?
The reform eliminates outdated exemptions like those for payphones, VCR rentals, and other items that no longer serve modern Louisiana. This helps ensure the tax system is fair and up-to-date.
The Governor has already reduced the budget by $2 billion, shouldn’t that address the fiscal cliff tax shortfall? Why do we still need this tax reform?
The $2 billion reduction is a step in the right direction to reduce government waste and spend tax dollars more wisely. However, the reduction spans multiple years and is not an immediate solution to the looming fiscal cliff.
Will this affect the Homestead Exemption or my property taxes?
No. This legislation provides even further constitutional protections for the homestead exemption and does not impact property taxes.