State Tax in Louisiana

According to Louisiana taxation law, the state income tax is broken down into three tax brackets.

Tax Brackets for single taxpayers in Louisiana are as follow:

• Two per cent on the first $12,500 of taxable income
• Four per cent on taxable income that is between $12,501 and $25,000
• Six per cent on taxable income of $25,001 and above.

Tax brackets for married persons filing a joint return the income tax rates are the same, but the income brackets are doubled.

Who Must File

• Residents of Louisiana who earned income must file a state tax return. The form to be filed is Form IT-540 and must be filed before May 15th.
• Non-residents who earned income from Louisiana must file a state tax return.
• Athletes, whether or not they are residents – if they earned income in the state of Louisiana, must file a state tax return.

Due Dates

Taxes must be filed by May 15th. It is important to file on time even if you cannot pay the full amount. This will prevent extra penalties and interest. Send whatever amount you can along with your return and it will reduce the amount of interest and penalties you pay later. You will then receive a letter from the collection division billing you for any remaining taxes, along with the interest and penalties that are assessed.

There is an extension granted but it is simply a carryover from the Federal extension. This is not a loophole in Louisiana taxation law; it is simply an opportunity for you to file at a later date, preferably no later than the date listed on the extension application paperwork. You must abide by this date to avoid penalties and interest.

The 2007 return offers an opportunity for taxpayers to claim a refundable tax credit. This reimbursement is for any assessments that were included as part of the home owner's insurance premium and made to the Louisiana Citizens Property Insurance Program.

Louisiana collects an inheritance tax. Each heir will receive an exemption that is subtracted from the inheritance. The remaining inheritance is then subject to the state tax in Louisiana.

Taxpayers have the option of filing their income taxes online. After filing, they can then go online to view the status of their refund. Various forms of tax relief, both federal and state, are available to Louisiana state residents who have been affected by natural disasters such as the recent hurricanes.