Key figures
Louisiana accounting
2026, with sources
- Corporation income tax
- 5.5% flatTax periods beginning on or after Jan 1, 2025; the graduated brackets are repealed.
- Corporation franchise tax
- Repealed from 2026Repealed for franchise tax periods beginning on or after Jan 1, 2026.
- Return due
- 15th day of 5th monthAutomatic six-month extension to file with a timely federal extension; not to pay.
The 2024 special session rewrote the corporate tax
Louisiana’s legislature met in a third extraordinary session in November 2024 and replaced the state’s corporate tax structure. For tax periods beginning on or after January 1, 2025, corporation income tax is a flat 5.5%; the old graduated brackets are gone. The corporation franchise tax — a separate tax on capital that Louisiana filed on the same CIFT-620 return — is repealed for franchise tax periods beginning on or after January 1, 2026.
The franchise tax repeal matters more to a venture-backed company than the rate change. It was measured on capital stock, surplus and borrowed capital, so a Delaware C-corp that raised a round and qualified in Louisiana owed it even while losing money. From 2026 that line disappears from the Louisiana tax provision, and only the income tax remains.
Apportionment and sourcing
Since 2016 Louisiana has apportioned the income of most corporations — everything except oil and gas — with a single sales factor, and it sources sales other than tangible goods to the market where the customer is. The Department’s rule, LAC 61:I.1135, says such a sale is a Louisiana sale “if and to the extent that” the taxpayer’s market for it is in Louisiana. For a SaaS company that means Louisiana’s share of income tracks Louisiana revenue, not Louisiana headcount.
Take a 15-person software company with two engineers in New Orleans and 3% of its revenue from Louisiana customers. It apportions roughly 3% of its taxable income to Louisiana and pays 5.5% on that, from 2026 with no franchise tax beside it. If it is still losing money, the Louisiana return shows no income tax — but it still has to be filed by May 15.
What it means for the books
The Louisiana return starts from federal taxable income, with state adjustments. The deferred state tax rate on Louisiana timing differences is 5.5% from 2025 onward. A company that recorded a franchise tax accrual through 2025 should see it stop in 2026; an accrual that keeps running is a sign the provision was rolled forward without being reviewed.
Estimates follow the federal rhythm: once the expected Louisiana tax after credits reaches $1,000, installments are due on the 15th day of the fourth, sixth, ninth and twelfth months of the tax year. The automatic six-month extension covers the return only, so a company expecting to owe pays with Form CIFT-620EXT-V by the original due date.
Deadlines
- 15th day of the 5th month after year end (May 15 for calendar years)Corporation income tax return (and franchise tax for periods before 2026)CIFT-620
- 15th day of the 4th, 6th, 9th and 12th months of the tax yearEstimated income tax, if expected tax after credits is $1,000 or more
- Original due date of the CIFT-620Extension payment voucher — the extension is to file, not to payCIFT-620EXT-V
The federal baseline
This page covers what Louisiana adds. The federal rules underneath it apply here too.
Common questions
Is Louisiana’s franchise tax really gone?
For tax periods beginning on or after January 1, 2026, yes. The franchise tax used to be filed on the same CIFT-620 as the income tax and was measured on capital, so it hit a company that had raised money even in a loss year. A calendar-year corporation that was already qualified in Louisiana paid it one last time for the 2025 franchise period, and may still owe returns for earlier periods.
When is the Louisiana corporate return due?
On the 15th day of the fifth month after year end — May 15 for a calendar-year company, a month later than most states. Louisiana grants an automatic six-month extension to file when a federal extension was requested on time, but any tax must still be paid by May 15.
Accounting next door
- TXTexas accountingTexas has no corporate income tax. It taxes a company’s margin through the franchise tax, at 0.75%, and nothing is due below $2,650,000 of revenue for 2026 and 2027 reports.
- ARArkansas accountingArkansas taxes corporate income on a graduated scale topping out at 4.3%, apportions by a single sales factor with market sourcing under Act 719, and allows no bonus depreciation.
- MSMississippi accountingMississippi taxes corporate income at 0% on the first $5,000, 4% on the next $5,000 and 5% above, keeps a throwback rule, and is phasing out its franchise tax: $0.50 per $1,000 of capital in 2026, repealed from 2028.
Founder guides on this
- US GAAPUS GAAP for early-stage startups, in plain EnglishAccrual accounting, revenue recognition (ASC 606), leases (ASC 842), stock compensation and capitalized software: what each means for a small company.
- R&D taxThe R&D tax credit and Section 174A for startupsEngineering salaries can earn a federal R&D credit against payroll tax, and Section 174A lets you deduct US research again. What qualifies, what to track.
- FundraisingAudit-ready books before your Series AInvestors, lenders and auditors ask for the same things: accrual statements, reconciled accounts and support for every balance. How to be ready first.
More of the Louisiana guide
- ReceivablesReceivables and sales tax in LouisianaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in LouisianaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in LouisianaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in LouisianaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in LouisianaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.