Key figures
Louisiana payroll
2026, with sources
A flat 3% withholding
Louisiana moved to a flat 3% individual income tax on January 1, 2025, so withholding is no longer bracketed. The Department’s withholding tables compute at 3.09% rather than 3% — a deliberate cushion so employees are less likely to owe at filing time, with any excess refunded on the return. Employees complete Form L-4. Employers register through LaTAP, file Form L-1 quarterly (April 30, July 31, October 31 and January 31 for standard filers) even when nothing was withheld, and reconcile the year on Form L-3 with the W-2s by January 31. Louisiana requires withholding returns and payments to be filed electronically.
How often the money is paid depends on size: average monthly withholding under $500 is paid quarterly, $500 to under $5,000 monthly, and $5,000 or more semimonthly. The L-1 return itself stays quarterly for every employer.
Unemployment insurance and new hires
Register with the Louisiana Workforce Commission when the first Louisiana employee is hired. For 2026 the taxable wage base falls to $7,000, from $7,700 in 2025. A new employer pays the average rate for its industry until it qualifies for an experience rate, and experienced rates on the 2026 table run from 0.09% to 6.20%.
Report every new hire and rehire to the Louisiana Directory of New Hires within 20 days, with the employee’s name, address, occupation and Social Security number and the company’s FEIN. Workers’ compensation coverage is required from the first employee.
What a first Louisiana hire looks like
Say a remote-first startup hires a designer in Lafayette at $90,000. Payroll withholds Louisiana tax from the state tables (a 3% tax, computed at 3.09%), the company pays unemployment tax on the first $7,000 at its industry rate, and there is no local income tax, no paid leave premium and no state minimum wage above the federal floor. The final paycheck, if she leaves, is due by the next regular payday or within 15 days, whichever comes first.
Deadlines
- Last day of the month after the quarterWithholding return (quarterly filers)L-1
- Jan 31Annual reconciliation with W-2sL-3
- Last day of the month after the quarterQuarterly wage and tax report to LWC
The federal baseline
This page covers what Louisiana adds. The federal rules underneath it apply here too.
Common questions
Does Louisiana have its own minimum wage or paid leave?
No. Louisiana has no state minimum wage statute, so the federal $7.25 applies, and state law bars parishes and cities from setting their own. There is no state paid sick leave, paid family leave or disability insurance program to withhold for.
What will we pay for Louisiana unemployment insurance?
Louisiana sets new employers at the average rate for their industry, so there is no single new-employer rate — LWC assigns it on the annual rate notice. The 2026 rates on the LWC table run from 0.09% to 6.20% on the first $7,000 of each employee’s wages.
Payroll next door
- TXTexas payrollNo wage tax and no paid leave program. A Texas hire means a TWC unemployment account on a $9,000 wage base, new-hire reporting and the Payday Law’s final-pay deadlines.
- ARArkansas payrollArkansas withholds at up to 3.7% in 2026, has an $11.00 minimum wage, and DWS publishes a $7,000 wage base with a 2.0% new-employer rate. No local payroll tax applies.
- MSMississippi payrollMississippi payroll is 4.0% withholding on income over $10,000 for 2026, unemployment insurance through MDES, new-hire reports within 15 business days, and workers’ comp from five employees.
How Louisiana compares
- No tax on wagesStates with no state income tax on wagesLouisiana: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programLouisiana: no state program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesLouisiana: state-level only. 14 of 51 states are on the list.
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.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
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
- PayablesPayables and contractors in LouisianaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- 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.
- Louisiana Department of Revenue — What are the individual income tax rates and brackets?
- Louisiana Department of Revenue — Why do the withholding tables use 3.09%?
- Louisiana Department of Revenue — Withholding
- Louisiana Workforce Commission — Unemployment Insurance Tax Rates
- Louisiana Workforce Commission — 2026 UI Contribution Rate Table
- US Department of Labor — State minimum wage laws
- Louisiana Workforce Commission — New Hire Registry
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.