The Pelican State uses three separate tax brackets when assessing income tax to its residents. Those who file using the single status are subject to income tax at the following rates:

• 2% on the first $12,500 of taxable income
• 4% between $12,501 and $50,000 of taxable income
• 6% on any taxable income greater than $50,001

Louisiana residents who file jointly with their spouse are subject to the same tax rates, although the income threshold is doubled.

Any resident of the state who meets the requirements to file a federal return will need to file a state income tax return as well. Residents can file IT-540, and need to report all of their income, regardless of where it was earned. Income earned outside of the state by a resident is still taxable by Lousiana. Leaving the state for temporary purposes does not change your residency status, and therefore your tax status. If you’ve paid taxes to another state on income earned there, you can file Schedule G and receive a credit for the amount.

Additionally, residents may also claim a deduction of some items considered exempt under the state law. For instance, military personell who are residents of Louisiana, yet are stationed in another area for 120 or more consecutive days of active duty may be eligible to receive up to a $30,000 deduction. However, the income must be reported on the Louisiana state return in order to qualify for the deduction.