Study: La.’s 2024 tax overhaul cuts bills for most, but not all

A new report from the Public Affairs Research Council of Louisiana says the state’s big tax changes, passed in late 2024, will leave most households paying less in state taxes — but some of the poorest may end up paying more.

The study, prepared by economist Greg Albrecht, looked at how the new system affects different income groups. It found that income tax cuts generally outweigh sales tax hikes, but the balance depends on how much people earn and spend.

For income taxes, Louisiana now has a single 3% tax rate and a much larger standard deduction ($12,500 for singles, $25,000 for couples). At the same time, smaller deductions were eliminated. Overall, nearly everyone will owe less in income tax.