Louisiana Income Tax

If you are a Louisiana resident, you must file a state income tax return. The Department of Revenue manages the collection of this tax and other taxes, such as sales and use, gift, and estate transfer taxes. These taxes fund a variety of state-level services. The state individual income tax rules are based on federal income tax rules, which makes filing and paying this tax relatively easy. Louisiana has a graduated income tax system, meaning the tax rate you pay depends on your taxable income. Louisiana Income Tax rates range from 1.85% to 4.25%. Here’s a quick breakdown:

• Low earners pay the lowest rate of 1.85%.
• Tax rates gradually increase as your income rises.
• The highest earners pay the top rate of 4.25%.,

How to File Louisiana Income Tax?

Resident taxpayers must file a return using Form IT-540 to report all of their income. The return also allows a credit for income tax paid to other states. This is particularly helpful for military personnel, who may change home of record and domicile multiple times during a single tax year.

You can file your Louisiana Income Tax return electronically or by traditional paper filing. If you choose to file electronically, make sure that you use an approved software vendor. The Department of Revenue website lists these vendors. If you file by paper, you can download the necessary forms from the department’s website or obtain them at local taxpayer service centers.

Louisiana Income Tax Due Dates

Most Americans know that their federal income tax returns are due on April 15. But what many don’t realize is that the state of Louisiana has its own filing deadline. In fact, the Pelican State has one of the later state-filing deadlines in the nation. Individual income tax returns are typically due by May 15, but for 2023, Louisiana is allowing residents an additional six-month extension.

The new extension is available for all taxpayers who file a 2023 Louisiana tax return using Louisiana File Online, the department’s free state individual income tax filing portal. The portal allows residents to electronically file individual tax returns and pay taxes, check the status of refunds, and amend current or prior-year returns.

However, it’s important to remember that an extension only extends the time to file a return. If you have a balance due, it must be paid by the original due date of May 15 to avoid interest and penalties. You can make an online payment with a credit or debit card using Form R-2868V (Individual Income Tax, Electronically Filed Extension Payment Voucher). Alternatively, you can mail a check or money order to the Louisiana Revenue Department.