Louisiana moved to a flat 3.0% individual income tax for taxable periods beginning on or after January 1, 2025. Employers file Form L-1 quarterly, pay unemployment insurance on the first $7,700 of wages, and report new hires.
Source last updated: 09/12/2025.
Overview
Louisiana has a state individual income tax, recently reformed to a flat rate for taxable periods beginning 1/1/2025. Employers must withhold and file Louisiana withholding returns. The state maintains an unemployment insurance system with an annual taxable wage base and requires new-hire reporting. Public employees participate in state retirement systems such as LASERS, TRSL and LSERS. Employers must follow federal FLSA rules for minimum wage, overtime and child labor in addition to Louisiana statutes.
State tax requirements at a glance
| Item | Louisiana requirement |
|---|
| Individual income tax | Flat 3.0% for taxable periods beginning on or after January 1, 2025; the previous graduated brackets were repealed |
| Employer withholding return | Form L-1, Employer's Quarterly Return of Louisiana Withholding Tax |
| UI taxable wage base (2025) | $7,700 |
| UI employer rates | Assigned by the Louisiana Workforce Commission and varying by employer reserve/ratio class; consult the published rate table for your rate year |
| New hire reporting | Generally within 20 days of hire, to the Louisiana New Hire Registry (Louisiana Workforce Commission) |
| Minimum wage | Defaults to the federal minimum wage of $7.25/hr where no higher local or state rate exists |
Every employer who withholds, or is required to withhold, Louisiana income tax must file Form L-1 and follow the Department of Revenue withholding instructions and tables. Emergency withholding rules and updated tables for 2025 were published, and employers must use the current tables for payroll withholding calculations. Employers should update withholding tables and employee communications for the flat rate.
Minimum wage and tipped employees
Louisiana's state minimum wage defaults to the federal minimum wage of $7.25/hr where no higher local or state rate exists. Federal rules on tipped wages and the tip credit apply, and federal guidance lists Louisiana's tipped minimum wage references. Employers must follow DOL guidance for tipped employees and any applicable state law, including recordkeeping.
Local tax requirements
Some municipalities and parishes may have local business or occupational license taxes, payroll-related local assessments, or other local requirements such as a municipal occupational license. Employers with multi-parish or multi-city operations should verify local taxing jurisdictions and local business licensing obligations directly with the parish or city.
Paid sick leave and PTO
There is no statewide mandatory paid sick leave requirement for private-sector employees in Louisiana. Employers may adopt PTO and sick policies voluntarily, though eligible employees may still be covered by federal leave laws such as FMLA. For state employees, sick and annual leave accrual and use are governed by civil service rules.
What employers should do: maintain clear PTO and sick-leave policies, post required federal and state notices, and coordinate paid and unpaid leave with FMLA and any local requirements.
Overtime
Louisiana employers must follow the federal Fair Labor Standards Act (FLSA) for overtime: nonexempt employees generally are entitled to 1.5 times the regular rate for hours worked over 40 in a workweek, unless a specific FLSA exemption applies. Louisiana does not provide a less-protective overtime regime that would relieve employers from FLSA obligations, and employers must track hours worked carefully to determine overtime liabilities. For tipped workers, follow FLSA tip credit and recordkeeping rules and any Louisiana wage statutes for specific industries.
Rest and meal breaks
Louisiana does not have a general state law requiring employers to provide paid meal or rest breaks for private-sector workers beyond federal law. If an employer provides short breaks, usually around 20 minutes, they are generally compensable under the FLSA. Employers should follow any sector-specific requirements or collective bargaining provisions. Detailed rules about leave intervals exist for state and civil-service employees.
Final pay and pay timing
Louisiana statute sets rules about wage payment timing and acceptable methods of payment, such as mailing and regular paydays. Employers should follow the RS 23 provisions regarding payment of wages and any penalties for late or failed payment of final wages, and should confirm timing for pay upon termination or resignation with the statute and Louisiana Workforce Commission guidance.
State-mandated retirement
- Public sector: Louisiana administers multiple public retirement systems for government employees, including LASERS, TRSL and LSERS. Membership and coverage are statutory for eligible public employees.
- Private sector: no statewide mandatory private-sector automatic-enrollment (auto-IRA) program is in effect in Louisiana as of this update. Employers should monitor state legislative activity for any private-sector automatic-enrollment developments.
Wage deductions and garnishments
Employers must comply with Louisiana wage deduction and garnishment statutes and federal garnishment limits. Voluntary deductions require proper written authorization from the employee, and court orders and child support garnishments must be honored per state and federal procedures. Consult Louisiana law and the courts for garnishment forms and limits.
Child labor and minimum age
Louisiana law contains specific child-labor provisions. Generally no minor under age 14 may be employed, except in limited circumstances. 14- and 15-year-olds have restricted hours and occupations, and 16- and 17-year-olds have more latitude but face some hour and time restrictions if they have not graduated high school. Employers must follow the Louisiana Revised Statutes (Title 23) as well as federal child-labor rules under the FLSA where applicable, and must ensure minors have required work certificates or permits when applicable.
Note: for payroll manuals, the short version is that Louisiana's minimum working age is generally 14, and detailed hour-of-work rules and prohibited occupations for minors are set in Louisiana law. Consult LA Revised Statutes Title 23 and the Louisiana Workforce Commission for required work certificates and hour limits.
Recordkeeping and notices
Employers must retain payroll records, timecards, tax withholding records and other employment records in accordance with the FLSA and state statutes. Post required federal and state employer notices, and maintain copies of any city or parish required postings if your operation crosses local jurisdictions.
Compliance updates
| Item | 2025 update |
|---|
| Individual income tax | Reformed to a flat 3% rate for taxable periods beginning on or after January 1, 2025. Employers should confirm withholding changes and use updated tables for 2025 payrolls. |
| UI wage base | 2025 wage base published at $7,700. Employers should verify their rate notices. |
Resources and references
- Louisiana Department of Revenue - Individual Income Tax, including the act and FAQ on the flat 3%.
- Louisiana Department of Revenue - employer withholding information and updated withholding tables (Form L-1).
- Louisiana Workforce Commission (LAWORKS) - unemployment insurance, UI tax rates and wage base.
- Louisiana New Hire Registry - new hire reporting requirements.
- U.S. Department of Labor - overtime and FLSA guidance, the federal baseline for overtime, tipped workers and child labor.
- State public retirement systems, for example LASERS, TRSL and LSERS official sites and publications.
Frequently asked questions
What is Louisiana's individual income tax rate for payroll withholding?
For taxable periods beginning on or after January 1, 2025, Louisiana uses a flat 3.0% individual income tax rate, and the previous graduated brackets were repealed. Employers should update withholding tables and employee communications accordingly.
Which form do Louisiana employers use to report withheld income tax?
Every employer who withholds, or is required to withhold, Louisiana income tax must file Form L-1, the Employer's Quarterly Return of Louisiana Withholding Tax, following the Department of Revenue's withholding instructions and tables.
What is the Louisiana unemployment insurance taxable wage base?
The Louisiana employer UI taxable wage base for 2025 is $7,700. Employer UI rates are assigned by the Louisiana Workforce Commission and vary by employer reserve ratio class, so check the published rate table for your rate year.
How quickly must Louisiana employers report new hires?
Employers must report all new hires and rehires to the Louisiana New Hire Registry at the Louisiana Workforce Commission, generally within 20 days of hire, using the state's required reporting fields.
Does Louisiana require private employers to provide paid sick leave?
No. Louisiana has no statewide mandatory paid sick leave requirement for private-sector employees, so employers may adopt PTO or sick-leave policies voluntarily. Eligible employees may still be covered by federal leave laws such as FMLA.
