BATON ROUGE, La. — Louisiana Governor Jeff Landry today highlighted the impact of the 2024 Tax Reform Special Session, noting that folks across the state are now saving more money as they file their 2025 tax returns.
“When people file taxes this year, they are getting a bigger refund,” said Governor Landry. “The typical middle-class working family will save nearly $500, and the average working individual will save around $261—cutting their state income tax liability by nearly a third. Turns out the biggest jackpot in Louisiana this year was in your paycheck!”
Background:
The legislation delivered the largest income tax cut in state history. By nearly tripling the standard deduction to $12,500, families now pay no income tax on their first $25,000 of income.
Louisiana moved to a flat 3 percent personal income tax rate, the second lowest in the nation and the lowest in the South, providing immediate relief.
The reform doubled the retirement income exemption to $12,000, allowing a married couple over 65 to earn nearly $49,000 tax-free. We also eliminated the corporate franchise tax and reduced the corporate income tax rate to a flat 5.5 percent, strengthening Louisiana’s business climate.
The changes are permanent and include automatic increases to the standard deduction to protect families from inflation.
