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Louisiana Has a New Income Tax: What It Means for You

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Louisiana Has a New Income Tax: What It Means for You


Louisiana has just revamped its tax system and the changes that kick in next year could significantly impact residents’ wallets.

Led by Gov. Jeff Landry, this comprehensive reform is designed to simplify the state’s tax code and make Louisiana more competitive for businesses and families.

In an end-of-session address, Landry described the tax changes as historic, adding, “Today we have made generational change in this state. We now stand at the threshold of a new era for Louisiana.”

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Here’s more of what you need to know.

New Louisiana flat tax

At the heart of this Louisiana tax reform is a flat 3% income tax rate, which replaces a tiered system with often complicated calculations.

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This change could be welcome news for many residents.

  • For example, according to an analysis by RESET Louisiana, if you are a Louisiana resident earning between $30,000 and $40,000 a year, you could save around $330 on your state taxes.
  • If your income falls between $70,000 and $80,000, expect savings of about $550.
  • And for those making over $140,000? You might find an extra $1,000 in your pocket when it’s time to file your state return.

And there’s more. The state standard deduction has nearly tripled for individuals and doubled for older adults, meaning some households with low income may not have to pay state income tax.

  • Before the bill, Louisiana’s standard deduction was $4,500 for single filers and $9,000 for joint filers.
  • Next year, those amounts jump to $12,500 for single filers and those married filing separately.
  • For those married filing jointly, heads of households, and surviving spouses, the standard deduction rises to $25,000 in 2025.

Also, under the new tax reform bill, the retirement income exemption doubles from $6,000 to $12,000 and will be adjusted annually for inflation beginning in 2026.

As a result, more older adults in the state may be able to keep more of their retirement earnings tax-free.

However, remember that tax cuts like these come with a cost. This tax package offsets some of the cuts with increased state sales tax.

Louisiana sales tax hike

Louisiana will increase its state sales tax rate from 4.45% to 5% for five years beginning Jan. 1, 2025.

According to the Tax Foundation, that makes Louisiana’s combined state and local sales tax rate the highest in the nation. (In six years, 2030, the Louisiana state sales tax is scheduled to be reduced to 4.75%.)

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As Kiplinger has reported, higher sales taxes generally mean consumers pay more at checkout, potentially reducing disposable income and altering shopping habits.

Critics argue that this sales tax increase places a heavier burden on residents with lower incomes, who spend more of their income on taxable goods and services.

Louisiana corporate tax changes

Meanwhile, businesses weren’t left out of the Louisiana tax cut equation.

  • The corporate income tax rate is set to drop to a flat 5.5%, down from a steep 7.5%.
  • The corporate franchise tax has also been eliminated for businesses with revenues exceeding $500 million.

Those changes are designed to attract more companies to the Pelican State which some supporters say could lead to job creation and economic growth.

Louisiana income tax: What does this mean for you?

So, what does all this mean for Louisianans?

Potentially More Money in Your Pocket: With lower income taxes, some residents will enjoy increased take-home pay.

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Simplified Tax Filing: The flat rate means less time spent figuring out previously complicated state tax brackets.

Higher Prices Ahead: Due to the increased sales tax, prices on goods and services will be slightly higher.

And as Louisiana adapts, stay informed about how these tax changes could affect your finances and daily lives. If you’re unsure how a higher state standard deduction or flat state tax rate will impact your return, consult a trusted and qualified tax professional.

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Louisiana

Louisiana Tech launches Center for Literacy and Learning to support students, educators

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Louisiana Tech launches Center for Literacy and Learning to support students, educators


RUSTON, La. (KNOE) – Louisiana Tech University’s College of Education and Human Sciences announced it has established a new Center for Literacy and Learning designed to expand evidence-based reading support for children and professional development for educators across North Louisiana.

The university’s Department of Curriculum, Instruction, and Leadership said the launch of the Center for Literacy and Learning at Louisiana Tech, also known as L3, will provide diagnostic assessments, tutoring and workshop opportunities, combining academic research with hands-on clinical practice.

“As literacy rates and reading achievement continue to present challenges across Louisiana and the nation, the Center for Literacy and Learning is rooted in supporting evidence-based instruction, applied research, and community partnerships,” said Dr. Dustin Whitlock, interim department head of Curriculum, Instruction, and Leadership.

Officials said planning for the center began more than a decade ago as faculty sought to expand literacy services for local schools and the surrounding community, but the effort faced delays due to space and funding challenges.

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University leaders said momentum increased after faculty partnered with the Louisiana Department of Education and literacy experts nationwide to create a professional learning course for Louisiana K-3 educators. The course, “The Science and Art of Teaching Reading,” focuses on structured literacy practices aligned with Science of Reading research. Louisiana Tech said funding connected to the course and the state education department helped make the center possible.

Megan Hunt, a teacher at A.E. Phillips Laboratory School, was selected to lead the center. Whitlock said Hunt brings a strong background in foundational literacy instruction and is working toward becoming a certified UFLI coach.

“Mrs. Hunt’s skill and expertise allow her to support both students and educators through high-quality literacy instruction and professional learning,” Whitlock said.

Hunt said the center is aimed at building long-term support for literacy instruction through collaboration with districts, families and community partners.

“Literacy affects all aspects of life and is ultimately how people access opportunity and how communities grow stronger,” Hunt said. “When children become proficient readers, it represents more than just academic progress; it changes the trajectory of their lives.”

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Local school leaders also praised the partnership. Michelle Thrower, K-2 facilitator for Lincoln Parish Schools, said professional development and resources connected to Louisiana Tech have supported literacy growth in the district.

“Our collaboration with Louisiana Tech has been a cornerstone of our success in elevating literacy proficiency across Lincoln Parish Schools,” Thrower said, citing DIBELS growth tied to the UFLI Foundations curriculum in K-2.

Louisiana Tech said the center will operate through three main components:

  • The Literacy Clinic
  • The Literacy Institute
  • The Literacy Resource Center.

The center is expected to provide individualized assessments, targeted intervention services, literacy workshops and educator professional development.

Officials said the components will be developed in phases over the next few years.

For more information, Louisiana Tech said the public can contact Dr. Dustin Whitlock at whitlock@latech.edu.

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Louisiana among states selected to receive federal funding for rare earth projects

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Louisiana among states selected to receive federal funding for rare earth projects



The U.S. Department of Energy announced Tuesday that Louisiana was one of the few states chosen for a $134 million rare earth element initiative in a move that would give the U.S. more independence from China, Reuters reports. 

ElementUSA has been awarded about $67 million for a rare earth refining facility projected to cost $850 million in St. John the Baptist Parish to ramp up its production of core material for military vehicles, naval ships and aircrafts.

Louisiana’s rare earth element initiatives are aimed at relocating the critical American minerals supply chain for electric vehicles, renewable energy and national defense. The minerals include bauxite residue, which is a waste product from aluminium production. The plant is expected to produce roughly 150-1,000 metric tons of rare earths annually.

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Oklahoma was also chosen to receive grant money for a refining facility in Tulsa.

Reuters has the full story.

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DHS watchdog finds use-of-force issues and safety and sanitation concerns at Louisiana ICE center

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DHS watchdog finds use-of-force issues and safety and sanitation concerns at Louisiana ICE center


A Department of Homeland Security watchdog report revealed that staff members at an ICE detention center in Louisiana used a prohibited chokehold to “gain control” of a person being held there and stabbed another in the hand with a pen when an officer could not close the door to a housing unit.

The newly released findings about Winn Correctional Center in central Louisiana follow the DHS inspector general’s review of video of the use-of-force incidents as part of an unannounced facility inspection. The report, which was published on the DHS website, also noted that the officer who stabbed the detainee with a pen was disciplined.

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Staff members failed to maintain safe and sanitary conditions, the report says, noting leaking vents and ceilings with insulation falling through. Staff members used napkins and Styrofoam containers to collect the water from the leaks, according to the report.

Scrutiny of conditions inside ICE detention centers that house more than 60,000 detainees has been growing.

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Earlier Wednesday, Homeland Security Secretary Markwayne Mullin defended his agency’s detention standards on Capitol Hill amid complaints about ICE’s Delaney Hall detention facility in Newark, New Jersey. That center has been the site of frequent protests.

Rep. Tim Kennedy, D-N.Y., accused Mullin of leaving detainees without food or medical care.

Mullin rejected the claims. “You can say all you want, but don’t accuse me of something that’s not accurate,” he said.

The inspector general made nine recommendations, ranging from environmental health and safety standards to proper handling of use-of-force incidents and maintaining food service standards.

ICE is working to address all of the issues, including by providing additional staff training, a spokesperson for the agency said.

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“These minor infractions included failing to provide detainees exercise equipment, record keeping errors and leaking vents. Another infraction included providing a shared computer for legal research that would allow other detainees to see other detainees’ case information,” the spokesperson said.

A spokesperson for DHS said the report shows that the facility complies with detention standards.

“ICE has higher detention standards than most U.S. prisons that hold actual U.S. citizens,” the spokesperson said.

Winn Correctional is one of the largest ICE detention centers in the country, housing more than 1,500 men. It opened in 1990, and ICE took it over from the state in 2019.

The report was produced after an unannounced inspection by the DHS inspector general, whose office recently got an infusion of $20 million and plans to boost its inspections from four to six per year to potentially as many as 40 to 60.

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ICE lists 70% of the 1,500 detainees at Winn as having “No ICE threat level,” meaning they do not have violent criminal histories.

Winn is an hour north of Alexandria, which is one of four hubs for ICE deportation flights around the country.



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