Louisiana Wage and Payroll Tax Facts

October 06, 2023

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.

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:

The below information was last updated September 28, 2023. It is not intended as legal or tax advice.

Louisiana Minimum Wage Rates

Wage Type

Louisiana Rates*

Federal Rates

Minimum Wage



Tipped Minimum Wage



Actual Tip Credit



*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 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]
2023 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

  • S = Single or married filing separately
  • M01 = Married filing separately
  • M = Married filing jointly

Exemptions (rates)

  • 0 = None
  • 1 = Self
  • 2 = Self and spouse

Exemptions (individuals)

  • Farm work
  • Domestic service
  • Service not in the employer's regular course of business, with an exception
  • Service by a U.S. citizen for a foreign government
  • Service not in the employer's regular course of business, not paid for in cash
  • Payments not considered taxable under the Internal Revenue Code
  • Fees paid to a public official
  • Services of ministers and members of religious orders in the course of their duties
  • Services performed by individuals under 18 in the delivery of newspapers
  • Newspaper or magazine vendors
  • Certain persons working for interstate carriers
  • Persons with no tax liability
  • Nonresident spouses of military personnel

Form W-4

Form L-4

Reconciliation Frequency


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


Employee Subject to Tax


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)

The state of Louisiana doesn’t require employers to collect tax for paid sick leave, nor does the state have a program providing paid sick 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


(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


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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