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Louisiana Income Tax Withholding Method Changed
December 31, 2024
At A Glance
- Louisiana passed legislation changing the income tax withholding calculation method effective January 1, 2025.
- The new regulations replaced the graduated income tax brackets with a single 3.00% flat tax rate and increased the standard deduction amounts for each tax filing status.
- Employers must comply with the new calculation method to avoid penalties and interest for incorrect withholding.
Summary
Louisiana declared an Emergency Rule to adopt new income tax withholding tables and formulas that will take effect January 1, 2025. Employers should begin using the new withholding tables and formula for the first payment of wages made on or after January 1, 2025.
The new regulations eliminates the graduated income tax brackets for individuals and replaces them with a flat 3.00% tax rate.
The new formula also eliminates the need for personal exemptions and replaces it with increased standard deduction amounts for each taxpayer filing status:
| Status | New Standard Deduction | Previous Standard Deduction |
| Single | $12,500 | $4,500 |
| Married, Filing Separately | ||
| Married, Filing Jointly | $25,000 | $9,000 |
| Head of Household | ||
| Surviving Spouse |
Employees can choose not to claim a standard deduction to calculate their withholding income tax regardless of taxpayer filing status.
Next Steps
- Employers may use the withholding tax tables or the income tax withholding formula to calculate the tax for their employees.
- Paylocity is monitoring for upcoming changes to the state’s Form L-4 that may impact withholding tax calculations and will make appropriate adjustments when the updated form is published.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.
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