The Act also continued the suspension of the lower tier of the tax ($1.50) through corporation franchise tax periods ending on or before November 30, 2023. Effective for franchise tax periods beginning on or after January 1, 2023, Act 389 reduced the tax rate to a single rate of $2.75 for each $1,000, or major fraction thereof in excess of $300,000 of capital employed in Louisiana. The new tax rates are 3.5% on the first $50,000 of net income, 5.5% on the next $100,000 of net income, and 7.5% on the excess over $150,000.Īlso, some provisions of Act 389 of the 2021 Regular Session of the Louisiana Legislature became effective. 26 tax rate applies to income at or below: 99,950 199,900 28 tax rate applies to income over: 3.

Effective for income tax periods beginning on or after January 1, 2022, Act 396 repealed the federal income tax deduction in exchange for reduced tax rates. With the passage of Constitutional Amendment #2, the provisions of Act 396 of the 2021 Regular Session of the Louisiana Legislature became effective. The calculation for Louisiana’s Excess Federal Itemized Personal Deductions remains the same, except that medical expenses must be deductible at the federal level and exceed the federal standard deduction for the taxpayer’s filing status.

The rates are available on our individual income tax page under the heading 'Determination of Tax'. Effective for income tax periods beginning on or after January 1, 2022, Act 395 repealed the federal income tax deduction and limits Louisiana’s Excess Federal Itemized Personal Deductions to medical expenses in exchange for reduced tax rates. With the passage of Constitutional Amendment #2, the provisions of Act 395 of the 2021 Regular Session of the Louisiana Legislature became effective.

2022 Income & Franchise Tax Changes Individual Income Tax

Federal income tax rate 2021