Louisiana
Taxes and business formation • USA 2025–2026
TL;DR
Louisiana at a glance — 2026 figures
State filing fees and tax position for individuals and companies registered in Louisiana.
| Parameter | Value |
|---|---|
| Personal income tax | See the income tax section below |
| LLC formation fee | $100.00 |
| LLC annual report fee | $30.00 |
| LLC annual report deadline | Company anniversary date |
| LLC dissolution fee | $100.00 |
| Corporation formation fee | $75.00 |
| Corporation annual report fee | $30.00 |
State filing fees are set by the Secretary of State and change without notice — the official source is linked in each section below. Federal figures for tax year 2026 are on the 2026 tax cheat sheet.
Updated: August 2026
LLC in Louisiana
Corporation in Louisiana
Tax system of Louisiana
Income Tax
Louisiana applies a flat personal income tax rate of 3%. This is one of the lowest rates among states that have a personal income tax at all.
Sales Tax
Louisiana's base sales tax rate is 4.45%, but local authorities can impose their own surcharges. As a result, the combined rate can exceed 10%, especially in cities such as New Orleans and Baton Rouge. Sales tax applies to many goods and services, including rentals, digital content, communication services, repairs, and short-term real estate rentals. Prescription medications, most groceries, and certain agricultural and manufacturing inputs are exempt. Due to the complex rate structure and differences between municipalities, determining the correct tax rate and registration requirements requires deep knowledge of local law. Our firm provides services for obtaining a Sales Tax Certificate and for preparing and filing the Sales and Use Tax Return. We advise business owners on registration, calculation, and reporting.
Property Tax
Louisiana is known for having one of the lowest property tax rates in the country. The average effective rate is about 0.52% of market value. In New Orleans and other large parishes, the tax can be higher due to additional municipal charges. Primary residences (homesteads) are exempt from the taxable base for up to $75,000, which significantly reduces the tax burden for most homeowners. Commercial real estate is taxed in full.
Business Taxes
Until 2025, Louisiana imposed a corporate income tax on C-corporations on a progressive scale from 3.5% to 7.5% depending on taxable profit. Starting January 1, 2025, a flat rate of 5.5% applies to corporate taxable income. The tax base is federal taxable income with adjustments, including the ability to fully expense qualified property and R&D costs in the year they are incurred. S-corporations, LLCs, and partnerships generally do not pay corporate income tax, but may be subject to a Franchise Tax (tax on capital) levied on companies registered in the state. The minimum amount is $110 per year, even with no profit; this tax is scheduled to be eliminated as of January 1, 2026. In addition, all companies are required to file an Annual Report each year with the Louisiana Secretary of State.
Excise Taxes
Louisiana levies excise taxes on a wide range of goods: alcoholic beverages, tobacco products, gasoline, diesel fuel, and car rentals. The sale of medical and recreational marijuana is also subject to special taxes and licensing at the state level. Hotel and tourism services in resort areas may be subject to additional local taxes.
Favorable Tax Conditions
• A flat personal income tax rate of 3% — one of the lowest among states that have an income tax at all; • A flat corporate tax rate of 5.5% is below the U.S. average; • The Franchise Tax will be repealed as of January 1, 2026; • Low property tax rates.
Compared to Other States
• The 3% flat personal income tax is lower than in Illinois (4.95%), Michigan (4.25%), or Utah (4.65%); • Louisiana offers low property taxes compared with most states; • However, the sales tax system is complex, and the combined rate can be very high; • Thanks to strategic support programs and affordable corporate tax rates, Louisiana remains an interesting choice for investors and entrepreneurs.
Frequently asked questions
Does Louisiana have a personal income tax?+
Yes. Louisiana levies a personal income tax on residents. The current rates and brackets are set out in the income tax section on this page, with a link to the state tax authority — rates are revised by the legislature, so always check the official source before filing.
How much does it cost to register an LLC in Louisiana?+
The state filing fee in Louisiana is $100.00. On top of that you need a registered agent with a physical address in the state, and FinTaxes charges from $299 for the formation service itself.
When is the annual report due for a Louisiana LLC?+
The Louisiana annual report fee is $30.00, due Company anniversary date. Missing it typically triggers a late penalty and, if left unresolved, administrative dissolution of the company.
Do I need to live in Louisiana to open an LLC there?+
No. You do not need to live in Louisiana — or in the United States at all — to own an LLC registered there. Non-residents can form and own a US LLC; what the state requires is a registered agent with a physical in-state address. Your own tax residency is a separate question and decides which returns you file.
Can FinTaxes file my Louisiana state return remotely?+
Yes. FinTaxes prepares and e-files federal and Louisiana state returns entirely remotely, for clients anywhere in the US or abroad, as an Authorized IRS e-file Provider.
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