Louisiana Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Louisiana.
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Louisiana uses the same minimum wage rate required by the federal government in the Fair Labor Standards Act (FLSA). However, the state doesn't allow for tipped wage amounts or credits. The city of New Orleans, however, has unique minimum wage rates for contractors that are substantially higher than the federally required rate.
When it comes to processing payroll, Louisiana-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
- Corporate Income Tax
The below information was last updated January 30, 2024. It is not intended as legal or tax advice.
Louisiana Minimum Wage Rates
|
Wage Type |
Louisiana Rates* |
Federal Rates |
|
Minimum Wage |
N/A |
$7.25 |
|
Tipped Minimum Wage |
N/A |
$2.13 |
|
Actual Tip Credit |
N/A |
$5.12 |
*The state doesn't have a minimum wage law, so the federal rates under the FLSA are used when applicable.
Louisiana State Income Tax (SIT) Rates
Louisiana's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:
| Filing Status | Income Tax Bracket [Over X] - [But not over Y] |
2024 Income Tax Rate |
| Single / Married (filed separately) / Head of Household | $0 - $12,500 | 1.85% of excess over $0 |
| $12,500 - $50,000 | 3.50% of excess over $12,500 | |
| $50,000 or greater | 4.25% of excess over $50,000 | |
| Married (filed jointly) | $0 - $25,000 | 1.85% of excess over $0 |
| $25,000 - $100,000 | 3.50% of excess over $25,000 | |
| $100,000 or greater | 4.25% of excess over $100,000 |
|
Additional Louisiana SIT Details |
|
|
Valid Filing Statuses |
|
|
Exemptions (rates) |
|
|
Exemptions (individuals) |
|
|
Form W-4 |
Form L-4 |
|
Reconciliation Frequency |
Annual |
Louisiana State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
Louisiana SUI Tax Details |
|
|
Taxable Wage Base |
$7,700 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.09% - 6.20% |
|
Rates for New Employers |
Vary by industry |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
Yes; due within 30 days of rate notice mailing, or 25 days if the notice isn't delivered by mail |
Louisiana State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Louisiana, however, doesn't require employers to collect an SDI tax.
Miscellaneous Louisiana Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Louisiana currently has no reciprocal agreements with any other states.
This doesn’t mean, however, that interstate workers living in Louisiana pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
Paid Sick Leave (PSL) Taxes
The state of Louisiana doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.
Paid Family and Medical Leave (PFML) Taxes
The state of Louisiana doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
Corporate Income Tax
In addition to the state-wide taxes mentioned above, corporations in Louisiana also have to pay regular income taxes as well. This applies to all corporations and entities that pay federal corporate income taxes and derive income from the state.
| Taxable Income | Tax Rate |
| $0 - $50,000 | 3.5% of excess over $0 |
| $50,000 - $150,000 | 5.5% of excess over $50,000 |
| $150,000 or greater | 7.5% of excess over $150,000 |
Any corporation with an exemption from the Internal Revenue Service (IRS) must submit a copy of that exemption to the state's Department of Revenue.
Louisiana Employer Registration
The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Workforce Commission for unemployment tax topics.
|
Registration Details |
Department of Revenue |
Workforce Commission |
|
Phone |
(225) 219-7318 | (225) 324-3111 |
|
Online Registration |
LaTAP Homepage | Unemployment Tax Account Application |
|
Registration Instructions |
Online registration is required. Account numbers will be issued in 1-3 days. | Online registration is required. Account numbers will be issued during the online process. |
|
Employer Self-Service Login |
LaTAP Homepage | LaWATS Login Page |
Additional Louisiana Payroll Tax Resources
- Department of Revenue Tax Calendar
- Workforce Commission SUI Resources
- Department of Revenue Tax Forms
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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