Louisiana DOR Announces Major Changes to State Individual Income Tax System

The Louisiana Department of Revenue (DOR) issued a revenue information bulletin announcing major changes to the state’s individual income tax laws effective 2025. Key reforms include a flat 3 percent tax rate replacing the previous graduated rates, a nearly tripled standard deduction, an increased retirement income exemption for those 65 and older, and new bonus depreciation and amortization deductions. The bulletin also outlines reduced annual caps for certain tax credits like those for movie productions, R&D, and historic rehabilitation. [La. Dep’t of Revenue, Revenue Information Bulletin No. 25-012, 03/07/25]

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