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.
Louisiana Deductions & 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
The Part Louisiana Does Not Do For You
Whatever Louisiana takes, it takes on your net profit — and net profit is just what you earned minus what you can prove you spent. The proving is on you, and it is where most of the money leaks out.
TaxTidy is where the proof lives. Photograph a receipt and it reads the vendor, the amount and the date in about three seconds, then files the expense on its Schedule C line. Nothing gets typed in twice, and nothing depends on you remembering a purchase from eight months ago.
Because Louisiana wants its own return alongside the federal one, the same organized record does double duty — one set of receipts, sorted once, ready for whichever deadline comes first. Your Audit Readiness Score shows you how solid that record is before anyone else asks.
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.
Start Tracking Your Louisiana Business Expenses
Your first 25 scans are on us — free for life, no card required. Enough to sort this quarter's receipts by Schedule C line and see your Audit Readiness Score for the first time.
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