Louisiana
LA · state · 18 cited facts
| Category | Provision | Value | Source |
|---|---|---|---|
| trust-nexus | Incomplete-gift nongrantor trust / ING (income tax reach) | REACHED at the grantor: the TRUST is a nonresident trust (R.S. 47:300.10(3), NV governing law) and owes nothing on out-of-state intangible gain, but Louisiana keeps its OWN pre-1954 grantor-attribution statute, R.S. 47:187, which taxes the grantor on trust income that may be accumulated for or distributed to the grantor in the discretion of a person without a substantial adverse interest. That describes an ING's distribution committee exactly, and it applies regardless of the trust being nongrantor under IRC 671-679 | sources (2)La. R.S. 47:187 (Income for benefit of grantor) · high confidence · as of 2026-07-13 · TY 2026 Louisiana taxes trust income to the GRANTOR whenever it may be accumulated for, or distributed to, the grantor in a non-adverse party's discretion Where any part of the income of a trust may, in the discretion of the grantor of the trust, either alone or in conjunction with any person not having a substantial adverse interest in the disposition of such part of the income, be distributed to the grantor, or may be held or accumulated for future distribution to the grantor ... such part of the income of the trust shall be included in computing the net income of the grantor. Note: This is Louisiana's OWN grantor-attribution rule, a survival of the pre-1954 Code, and it is independent of federal grantor status: an ING that is nongrantor under IRC 671-679 can still be caught. An ING's distribution committee exists precisely so income MAY be accumulated for or distributed to the grantor, and committee members (adverse-interest analysis aside) are the very 'person[s] not having a substantial adverse interest' the statute names. The retained gain is therefore squarely within the statute's terms. Not an escape. https://www.legis.la.gov/legis/Law.aspx?d=101693La. R.S. 47:300.10(3) (resident trust: governing-law test); 47:300.7 (nonresident source rules) · high confidence · as of 2026-07-13 · TY 2026 Louisiana excludes any trust governed by another state's law from resident-trust status If the trust instrument provides that the trust is governed by the laws of any state other than the state of Louisiana, then the trust shall not be considered a resident trust. Note: Settlor domicile is irrelevant for inter vivos trusts. The trust is a NONRESIDENT trust and, under 47:300.3, a nonresident trust is taxed only on Louisiana-source income, which retained gain on intangibles is not. The escape nonetheless FAILS at the grantor level: see LA_TRUST_ING_GRANTOR_HOOK. https://www.legis.la.gov/legis/Law.aspx?d=101805 |
| estate-none | Estate and inheritance tax | None | sources (1)Louisiana Department of Revenue FAQ, Does Louisiana impose an inheritance tax? · high confidence · as of 2026-07-02 · TY 2025 Louisiana inheritance tax (R.S. 47:2401-2426) repealed by Act 822 of 2008 No, Act 822 of the 2008 Regular Legislative Session repealed the inheritance tax law, R.S. 47:2401-2426. Note: Source page uses an en dash in the statute range; normalized to a hyphen here per house style, wording unchanged. Same page: 'Effective January 1, 2012, no receipts will be issued for inheritance tax regardless of the date of death.' https://revenue.louisiana.gov/tax-education-and-faqs/faqs/estate-transfer-taxes/does-louisiana-impose-an-inheritance-tax/ |
| rate | Top income tax rate (TY2025) | 3.0% flat (Act 11, effective TY2025) | sources (1)LA RS 47:32; Act 11 (2024 3rd Ex. Sess.) · high confidence · as of 2026-07-20 · TY 2025 Louisiana flat income tax rate is 3.0% for TY2025+ (repealing the prior graduated schedule) The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income. Note: Verbatim from the live R.S. 47:32 page. Act 11 of the 2024 3rd Extraordinary Session replaced the prior graduated schedule (1.85%/3.5%/4.25%) with this flat 3% rate for TY2025+ and repealed the in-state net capital gain deduction. Standard deduction increased to $25,000 MFJ (CPI-indexed from TY2026). A prior version of this fact quoted a reconstructed sentence and pointed at d=102065 (repealed R.S. 47:34, the wrong document); corrected to d=101946 (R.S. 47:32). https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946 |
| deduction | Standard deduction (MFJ, TY2025) | $25,000 MFJ ($12,500 single; combined personal exemption and standard deduction; CPI-indexed from TY2026) | sources (1)LA RS 47:294; Act 11 (2024 3rd Ex. Sess., enrolled) · high confidence · as of 2026-07-02 · TY 2025 Louisiana combined personal exemption and standard deduction is $12,500 single / $25,000 MFJ for TY2025 (CPI-indexed from 2026) For tax year 2025, the amount of the standard deduction shall be as follows: A. A combined personal exemption and standard deduction in the following amounts: (1) Single Individual and Married-Separate $12,500.00 (2) Married-Joint Return, a Qualified Surviving Spouse, and Head of Household 200% of the dollar amount provided for Single Individuals ... Beginning January 1, 2026, and thereafter, the amount of the standard deduction provided in Subsection A of this Section shall be adjusted annually by... the percentage increase in the Consumer Price Index Note: The amount is per filing status, not per taxpayer: $12,500 single/MFS; MFJ, QSS, and HoH get 200% ($25,000). The prior url (Law.aspx?d=102065) resolved to repealed R.S. 47:34, the wrong document; the enrolled Act 11 (2024 3rd Ex. Sess.) is cited instead. https://www.legis.la.gov/legis/ViewDocument.aspx?d=1391656 |
| conformity | Loss carryforward | Conforms to IRC §1212 indefinite federal carryforward applies | sources (1)IRC §1212(b) · high confidence · as of 2026-06-21 · TY 2025 IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim |
| muni-instate | In-state muni bond interest | Exempt: La. R.S. 47:48 exempts interest on Louisiana state and local obligations | sources (1)La. R.S. 47:48 · high confidence · as of 2026-06-20 · TY 2025 LA exempts LA-issued bonds; out-of-state muni bond interest is taxable per La. R.S. 47:48 The amount of interest received upon obligations of the State of Louisiana, or any political or municipal subdivision thereof, to such extent as is now exempt by law shall not be included in gross income. Note: La. R.S. 47:48 at legis.la.gov (doc ID 102277). Verbatim statutory text confirmed against live source. The statute exempts interest on Louisiana state and local obligations from gross income. Out-of-state muni bond interest is taxable by negative implication: the exemption is expressly limited to Louisiana obligations. Prior URL (d=98681) resolved to RS 40:600.15 (a repealed statute) and was incorrect. https://www.legis.la.gov/Legis/Law.aspx?d=102277 |
| muni-outstate | Out-of-state muni bond interest | Taxable: La. R.S. 47:48 limits exclusion to Louisiana obligations; out-of-state interest is not excluded from gross income | sources (1)La. R.S. 47:48 · high confidence · as of 2026-06-20 · TY 2025 LA exempts LA-issued bonds; out-of-state muni bond interest is taxable per La. R.S. 47:48 The amount of interest received upon obligations of the State of Louisiana, or any political or municipal subdivision thereof, to such extent as is now exempt by law shall not be included in gross income. Note: La. R.S. 47:48 at legis.la.gov (doc ID 102277). Verbatim statutory text confirmed against live source. The statute exempts interest on Louisiana state and local obligations from gross income. Out-of-state muni bond interest is taxable by negative implication: the exemption is expressly limited to Louisiana obligations. Prior URL (d=98681) resolved to RS 40:600.15 (a repealed statute) and was incorrect. https://www.legis.la.gov/Legis/Law.aspx?d=102277 |
| qoz-conformity | QOZ conformity (IRC §1400Z-2) | Conforms to IRC §1400Z-2 QOZ gain deferral and 10-year exclusion via federal AGI starting point (structural conformity) | sources (1)La. R.S. 47:293 · medium confidence · as of 2026-07-02 · TY 2025 Louisiana conforms to IRC §1400Z-2 QOZ gain deferral and exclusion "Adjusted gross income" means... the adjusted gross income of the individual for the taxable year that is reportable on the individual's federal income tax return. Note: Louisiana conformity flows from the federal AGI starting point (La. R.S. 47:293, quoted). No dedicated DOR guidance names §1400Z-2; conformity is structural. The prior url (d=102429) resolved to repealed R.S. 47:648.11, the wrong document. The 2024 repeal of the LT capital gain deduction (RS 47:293(9)(a)(xvii)) introduced recent statutory change; QOZ conformity is unaffected. https://legis.la.gov/Legis/Law.aspx?d=101760 |
| qsbs-conformity | QSBS conformity (IRC §1202) | Conforms to IRC §1202 QSBS gain exclusion via federal AGI starting point (structural conformity) | sources (1)La. R.S. 47:293 · medium confidence · as of 2026-07-02 · TY 2025 Louisiana conforms to IRC §1202 QSBS gain exclusion "Adjusted gross income" means... the adjusted gross income of the individual for the taxable year that is reportable on the individual's federal income tax return. Note: La. R.S. 47:293 (individual income tax definitions) starts from federal AGI, so federally excluded §1202 QSBS gain never enters the Louisiana base; no addback found. The prior authority (corporate La. R.S. 47:287.701(A)) and url (d=102429, repealed R.S. 47:648.11) were the wrong provisions and are replaced. https://legis.la.gov/Legis/Law.aspx?d=101760 |
| agency-obligations | FNMA/FHLMC bond interest | Taxable: IT-540 Schedule E Code 01E covers 'U.S. government obligations and their agencies' only; FNMA/FHLMC are GSEs without a federal bondholder exemption; LDR: 'if not identified specifically, it is taxable' | sources (1)Louisiana Department of Revenue, IT-540 (2025) Schedule E Code 01E; LDR FAQ on U.S. Government Obligations · medium confidence · as of 2026-06-20 · TY 2025 Louisiana exempts interest on 'U.S. government obligations' (IT-540 Schedule E Code 01E) but FNMA and FHLMC are not U.S. government obligations; their interest is taxable Schedule E, Code 01E: U.S. Government Obligations; Interest income on obligations of the United States government and its agencies. Note: The IT-540 Code 01E subtraction is for 'obligations of the United States government and its agencies.' FNMA and FHLMC are GSEs (government-sponsored enterprises), not agencies of the U.S. government; they lack a federal bondholder tax exemption statute (12 U.S.C. §§1719(e), 1723a(c); 12 U.S.C. §1455(a)). Secondary clause from same instructions: 'If the amount is not identified specifically as being from U.S. government obligations, it is taxable and cannot be excluded.' No LDR document names FNMA/FHLMC explicitly; confidence: medium. https://dam.ldr.la.gov/taxforms/IT540i-WEB-2025.pdf |
| dividend-qualified | Qualified dividend rate (IRC §1(h)(11)) | Ordinary rate: Louisiana has no IRC §1(h)(11) preferential rate; qualified dividends taxed at the 3.0% flat rate (Act 11 repealed the prior net capital gain deduction effective TY2025) | sources (1)LA RS 47:32; Act 11 (2024 3rd Ex. Sess.) · high confidence · as of 2026-07-20 · TY 2025 Louisiana flat income tax rate is 3.0% for TY2025+ (repealing the prior graduated schedule) The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income. Note: Verbatim from the live R.S. 47:32 page. Act 11 of the 2024 3rd Extraordinary Session replaced the prior graduated schedule (1.85%/3.5%/4.25%) with this flat 3% rate for TY2025+ and repealed the in-state net capital gain deduction. Standard deduction increased to $25,000 MFJ (CPI-indexed from TY2026). A prior version of this fact quoted a reconstructed sentence and pointed at d=102065 (repealed R.S. 47:34, the wrong document); corrected to d=101946 (R.S. 47:32). https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946 |
| treasury | U.S. Treasury interest | Exempt: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations (T-bills, T-notes, T-bonds, TIPS, I-bonds) | sources (1)31 U.S.C. §3124(a) · high confidence · as of 2026-06-20 · TY 2025 U.S. Treasury interest exempt from Louisiana income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax. Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title31-section3124 |
| fhlb-ffcb | FHLB and FFCB bond interest | Exempt: 12 U.S.C. §1433 (Federal Home Loan Bank Act) and 12 U.S.C. §2023 (Farm Credit Act) mandate state tax exemption for FHLB and FFCB securities | sources (2)12 U.S.C. §1433 (Federal Home Loan Bank Act) · high confidence · as of 2026-06-20 · TY 2025 FHLB and FFCB bond interest exempt from Louisiana income tax: federal enabling statutes mandate state tax exemption Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority. Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section1433&num=0&edition=prelim12 U.S.C. §2023 (Farm Credit Act) · high confidence · as of 2026-06-20 · TY 2025 Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124). Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title12-section2023&num=0&edition=prelim |
| carryback | Capital loss carryback | None: IRC §1212(b) provides carryforward only for non-corporate taxpayers; no carryback to prior years | sources (1)IRC §1212(b) · high confidence · as of 2026-06-21 · TY 2025 IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year. Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged. https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title26-section1212&num=0&edition=prelim |
| character | Long-term capital gains treatment | Ordinary rate: no preferential long-term rate; capital gains taxed as ordinary income at the flat 3% rate (La. R.S. §47:32) | sources (1)LA RS 47:32; Act 11 (2024 3rd Ex. Sess.) · high confidence · as of 2026-07-20 · TY 2025 Louisiana flat income tax rate is 3.0% for TY2025+ (repealing the prior graduated schedule) The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income. Note: Verbatim from the live R.S. 47:32 page. Act 11 of the 2024 3rd Extraordinary Session replaced the prior graduated schedule (1.85%/3.5%/4.25%) with this flat 3% rate for TY2025+ and repealed the in-state net capital gain deduction. Standard deduction increased to $25,000 MFJ (CPI-indexed from TY2026). A prior version of this fact quoted a reconstructed sentence and pointed at d=102065 (repealed R.S. 47:34, the wrong document); corrected to d=101946 (R.S. 47:32). https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946 |
| community-property | Community property state | Community property state (civil law system): the community regime includes property acquired during marriage by either spouse through effort, skill, or industry (La. Civ. Code art. 2338); matrimonial agreements can modify or opt out of the regime | sources (1)La. Civ. Code art. 2338 · high confidence · as of 2026-06-21 · TY 2025 Louisiana is a community property state: the community regime includes property acquired during marriage by either spouse (La. Civ. Code art. 2338) The community property comprises: property acquired during the existence of the legal regime through the effort, skill, or industry of either spouse; property acquired with community things or with community and separate things, unless classified as separate property under Article 2341; property donated to the spouses jointly; natural and civil fruits of community property; damages awarded for loss or injury to a thing belonging to the community; and all other property not classified by law as separate property. Note: Louisiana civil law community property system (the 'legal regime') differs from common-law community property states; it is governed by the Civil Code, not a family code statute. La. Civ. Code arts. 2325-2437 govern. Either spouse can opt out of the community regime by matrimonial agreement. https://www.legis.la.gov/Legis/Law.aspx?d=109420 |
| filing-status-flat | Filing status irrelevant: flat rate state | Yes: flat 3% rate on Louisiana taxable income regardless of filing status (LA RS 47:32; Act 11, 2024 Third Extraordinary Session, effective TY2025) | sources (1)LA RS 47:32; Act 11 (2024 3rd Ex. Sess.) · high confidence · as of 2026-07-20 · TY 2025 Louisiana flat income tax rate is 3.0% for TY2025+ (repealing the prior graduated schedule) The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income. Note: Verbatim from the live R.S. 47:32 page. Act 11 of the 2024 3rd Extraordinary Session replaced the prior graduated schedule (1.85%/3.5%/4.25%) with this flat 3% rate for TY2025+ and repealed the in-state net capital gain deduction. Standard deduction increased to $25,000 MFJ (CPI-indexed from TY2026). A prior version of this fact quoted a reconstructed sentence and pointed at d=102065 (repealed R.S. 47:34, the wrong document); corrected to d=101946 (R.S. 47:32). https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946 |
| migration-loss-conformity | Migration loss carryforward conformity | Full conform (structural inference): Louisiana computes its income tax from the federal base, so an imported federal section 1212 capital-loss carryforward flows through to offset post-residency gains; no published guidance addresses the imported pre-residency carryforward. | sources (1)LA RS 47:32; Act 11 (2024 3rd Ex. Sess.) · medium confidence · as of 2026-07-03 · TY 2025 Louisiana conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference The tax to be assessed, levied, collected, and paid upon the taxable income of an individual shall be computed at the rate of three percent on net income. Note: URL corrected: the prior d=102065 resolved to R.S. 47:34, not R.S. 47:32; the rate statute R.S. 47:32 (flat 3% per Act 11, 2024 3rd Ex. Sess.) is d=101946. Louisiana computes the tax on the taxable income of an individual, which derives from federal adjusted gross income, so the federal section 1212 capital-loss carryover flows through. Quote verbatim from the live legis.la.gov page. No published guidance addresses the imported pre-residency carryforward, so that application remains a structural inference. https://www.legis.la.gov/legis/Law.aspx?p=y&d=101946 |