Key figures
Louisiana payables
2026, with sources
1099s go to Louisiana too
Louisiana requires every service recipient that files Form 1099-NEC with the IRS to file it with the Department of Revenue as well, on or before February 28. The Department accepts the data through the IRS Combined Federal/State Filing program when the federal forms are e-filed on time; paper or late federal filers submit through LaWage instead. Any 1099 that shows Louisiana income tax withheld is filed with the L-3 annual reconciliation.
Use tax now reaches software
The 2024 reform extended Louisiana sales and use tax to digital products and related services from January 1, 2025, including SaaS — access to vendor-hosted software such as CRM, productivity and e-signature tools. The Department’s guidance, “Sales and Use Tax on Digital Products and Related Services”, is posted on its Policies page, and parishes have aligned with the state effective date.
So a Louisiana-based startup paying for a dozen SaaS tools now has a use-tax line in its accounts payable process. Take a company in Baton Rouge spending $4,000 a month on software from vendors that do not collect Louisiana tax: it owes 5% state use tax plus the East Baton Rouge parish rate on those invoices, reported on its own return.
Vendor checks
Uncashed vendor checks are unclaimed property once they have sat for five years, reported and paid to the Louisiana Treasury by November 1. Uncashed payroll checks reach that point after one year.
Deadlines
- Feb 281099-NEC copy to LDR (unless filed through CF/SF)Form 1099-NEC
- Jan 31Annual reconciliation, including 1099s that show Louisiana withholdingL-3
The federal baseline
This page covers what Louisiana adds. The federal rules underneath it apply here too.
Common questions
Do I file 1099-NEC forms with Louisiana?
Yes. Every business that must file Form 1099-NEC with the IRS must also file it with LDR, by February 28. The simplest route is to e-file with the IRS on time through the Combined Federal/State Filing program, which forwards the data to Louisiana; otherwise the forms go in through LaWage.
Do we owe use tax on the software we buy?
From January 1, 2025, yes, if the vendor did not charge Louisiana tax. Louisiana taxes SaaS and other digital products at the state and parish level, so a subscription bought from an out-of-state vendor that does not collect Louisiana tax creates use tax the company reports itself.
Payables next door
- TXTexas payablesNo state 1099s and no contractor withholding. What Texas does reach in payables is use tax on untaxed software and TWC’s direction-or-control test for contractors.
- ARArkansas payablesArkansas wants state copies of 1099s with the ARW-3 by January 31. Use tax at 6.5% plus local reaches hardware and specified digital products, not hosted SaaS.
- MSMississippi payablesMississippi takes 1099s for personal services only at $3,000 or more, due February 28, and since 2023 exempts software hosted outside the state from use tax, leaving use tax mainly for goods and downloads.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
More of the Louisiana guide
- AccountingAccounting and state tax in LouisianaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in LouisianaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- 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.