Tax Law in Louisiana: What Louisiana Taxpayers Need to Know 2026

By The Baringer Law Firm, LLC

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Tax Law

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Last Modified on Jan 19, 2026

If you’re navigating a tax law case in Louisiana, it’s imperative that you have a basic understanding of Louisiana tax laws and are comfortable navigating complex legal matters. Whether they’re handling taxes for a business or themselves, it can be a lot for any person to take on a tax law case. Moreover, recent reforms have significantly changed the landscape of tax law in Louisiana.

As a taxpayer, it’s imperative that you stay informed on updated tax laws to ensure your own compliance and to take advantage of key tax benefits. It’s recommended to hire a tax lawyer to help you through this process. Even with a Baton Rouge tax lawyer on your side, it’s critical to understand your rights and responsibilities as a taxpayer.

Tax Law in Louisiana

Louisiana tax laws cover business taxes, income taxes, property taxes, sales and use taxes, and any other related taxes that apply to your financial profile. It’s important that you understand your obligations and opportunities under tax law in Louisiana to protect your finances and accumulate wealth over time.

Here’s what taxpayers need to know as we move into 2026. As of January 2025:

• Statewide sales and use tax increased to 5 percent
• There is a 3 percent flat tax rate on all individual income
• There is a 2 percent business utility sales tax
• The sales tax base now includes digital goods and services

Additionally, there are important updates to know about that are happening in 2026. For starters, no more corporate franchise tax for tax periods starting in January 2026. There are other tax implications that can impact individuals and businesses starting in 2026, including:

• Changes to how S Corporations are treated under state law
• Mandatory E-filing for business tax returns and payments
• No more inventory tax credits for C-corporations starting July 2026
• Retirement income exemption doubles to $12,000 and adjusts annually
• Standard deductions start annual inflation adjustments using the Consumer Price Index

There are some other significant things to note about Louisiana’s tax laws that can make your life as a taxpayer easier. To make your life as a taxpayer easier, it’s crucial to understand how these updates impact you beyond just the rates and dates. Louisiana has one of the highest combined state and local tax rates, coming in at 10.11 percent. State property taxes are also fairly low at 0.55 percent. Comparatively, the state with the highest property tax rate is Illinois at 1.83 percent, and the lowest is Hawaii with 0.29 percent.

Louisiana does not have a state estate tax law or inheritance law. That said, large estates can still be impacted by federal estate taxes. It’s helpful to hire a tax lawyer who understands Louisiana tax laws to help you understand what taxes affect your finances and your future.

Hire a Tax Lawyer

Navigating a tax law case can be complicated, especially when you’re trying to handle everything on your own. The good news is you can turn to a trusted law firm to help you with any tax issue. Whether you’re actively facing a tax law issue or you’re seeking legal advice to maintain compliance and avoid issues down the road, you can count on a local Baton Rouge tax lawyer to help you through your tax law case.

The Baringer Law Firm, L.L.C., has been representing local businesses and individuals through complex tax law cases for years, and we’re ready to put our experience to work for you. We’re proud to be a small, intimate team that brings the knowledge and resources of a much larger law firm.

FAQs

What Are Louisiana’s New Tax Laws?

Louisiana’s new tax laws included significant reforms such as broadening the sales tax base, enacting a flat tax rate for income taxes, and increasing the state sales tax. These laws took effect at the beginning of 2025. Recent legislation also changed requirements for gift tax and estate tax. It’s beneficial to talk with a Baton Rouge tax attorney to ensure you’re working within the parameters of these laws and using them to your advantage.

How Can My Estate Plan Impact My Taxes in Louisiana?

Your estate plan can impact your taxes in Louisiana in many ways. Failing to take taxes into consideration during the estate planning process can leave you with hefty, unexpected costs. Without the right plan in place, the value of assets in an estate can depreciate. It’s important to understand your potential tax liabilities, so you can make the right decisions for securing your assets and ensuring they retain their value over time.

How Can a Baton Rouge Tax Lawyer Help Me?

A Baton Rouge tax lawyer can help you in several different ways. If you’re actively dealing with an issue with the IRS, you can hire a tax lawyer to represent you. Your attorney can handle any number of conflicts, including audits, back taxes, tax return issues, and any other tax matters you encounter. Moreover, a tax attorney can help you get tax issues under control before they become a bigger problem.

How Much Does It Cost to Hire a Tax Lawyer in Louisiana?

The cost of hiring a tax lawyer in Louisiana can vary depending on the nature and complexity of your case, as well as the specific services you require. The attorney’s level of experience may also play a part in overall costs. When you hire a tax lawyer, you can expect them to charge a flat fee, an hourly rate, or a retainer. You can typically discuss this in more detail before you make any formal commitment to work together.

Louisiana Tax Lawyer

Our Baton Rouge tax lawyers are skilled advisors and litigators alike. We bring decades of combined knowledge that we’re ready to leverage to help you through your legal matters. No matter the nature of your case, you can count on us to provide the support you need.

If you’re ready to discuss your case in more detail, our team is here to help. Contact our office to set up your initial appointment with a trusted team member today.