Louisiana Small Business Tax Guide — 2026
Income Tax Rate
1.85% — 4.25% (progressive, 3 brackets)
Sales Tax Rate
4.45% state + local (total typically 8% — 12%)
Filing Deadline
May 15 (one month after federal deadline)
Louisiana Income Tax
Louisiana imposes a state income tax with rates of 1.85% — 4.25% (progressive, 3 brackets). Self-employed individuals, freelancers, and sole proprietors pay this tax on their net business income in addition to federal income tax and federal self-employment tax (15.3%).
Self-Employment in Louisiana
Louisiana taxes self-employment income at progressive rates up to 4.25%. No separate state SE tax. Louisiana allows a deduction for federal income tax paid.
Estimated Tax Requirements
Quarterly estimated payments required if you expect to owe $1,000 or more. Standard federal due dates apply.
LouisianaDeductions & Credits
- Louisiana allows a deduction for federal income taxes paid
- Excess federal itemized deductions can be claimed on Louisiana return
- Credit for taxes paid to other states
- Various industry-specific credits and exemptions
Business Filing Fees
LLC: $100 formation + $35 annual report. Corporation: $75 formation + annual franchise tax.
Key Facts About Louisiana Taxes
- Louisiana allows a deduction for federal income tax paid — one of few states that do
- Filing deadline is May 15 — a full month after the federal deadline
- Combined state and local sales tax rates can exceed 12% — highest in the nation
- Low income tax rates but high sales and property taxes
Track Your Louisiana Business Expenses
TaxTidy helps Louisiana freelancers and self-employed individuals track every business expense with AI-powered receipt scanning. Snap a photo of any receipt and TaxTidy instantly extracts the vendor, amount, and tax category — then maps it to the correct IRS Schedule C line. At tax time, generate an audit-ready PDF report with all your deductions organized and totaled.
Frequently Asked Questions
Can I deduct federal taxes on my Louisiana return?
Yes. Louisiana is one of the few states that allows you to deduct federal income tax paid on your state return, significantly reducing your Louisiana taxable income.
When is the Louisiana filing deadline?
May 15 — a full month after the federal April 15 deadline. This gives Louisiana filers extra time.
Does Louisiana have high sales tax?
Yes. Combined state (4.45%) and local rates can exceed 12% in some parishes — the highest combined rates in the nation.
Official source: Louisiana Department of Revenue
TaxTidy provides expense organization tools based on the most current US tax law available to it. TaxTidy is not a CPA, Enrolled Agent, or licensed tax professional. All categorizations, deductions, and tax calculations are estimates. Please verify all data for accuracy and consult a certified tax professional before filing.
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