Louisiana Lawmakers Defer Income Tax Cut Proposals

Legislators cite need to assess impact of recent tax changes before pursuing further reductions.

Mar. 31, 2026 at 7:18pm

Got story updates? Submit your updates here. ›

A serene, painterly depiction of the Louisiana state capitol building in warm, golden light, conveying a sense of thoughtful deliberation around the state's tax policies.As Louisiana lawmakers weigh the fiscal impacts of recent tax changes, a contemplative scene of the state capitol reflects the cautious approach to further income tax cuts.New Orleans Today

Proposals to further reduce Louisiana's state income tax have been voluntarily deferred in the state legislature, as lawmakers express a more cautious approach. Bills aimed at fully repealing the income tax or gradually lowering the rate were put on hold, with legislators emphasizing the need to first evaluate the impact of recent tax reforms before pursuing additional cuts.

Why it matters

Louisiana's income tax policies have significant implications for the state's fiscal health and economic competitiveness. Lawmakers are navigating a balance between providing tax relief and ensuring the state can maintain critical services and meet long-term obligations.

The details

Two bills proposing further income tax reductions in Louisiana - HB 253 and HB 411 - were voluntarily deferred before being considered in the House Ways and Means Committee. Legislators cited the need to assess the impact of a recent 3% flat income tax that was implemented at the urging of Gov. Jeff Landry. Senate President Cameron Henry noted that the state also has to plan for a scheduled sales tax reduction in 2030, emphasizing the importance of fiscal planning.

  • In 2025, the Louisiana Legislature voted to change the individual income tax rate to a flat 3% at the urging of Gov. Jeff Landry.
  • On March 31, 2026, the bills proposing additional income tax cuts were voluntarily deferred in the Louisiana Legislature.

The players

Rep. Danny McCormick

A Republican state representative from Oil City who sponsored HB 253, which aimed to fully repeal Louisiana's income tax.

Rep. John Wyble

A Republican state representative from Franklinton who sponsored HB 411, which proposed a gradual reduction in the state income tax rate over 10 years.

Sen. Cameron Henry

The Republican president of the Louisiana State Senate, who noted the need to plan for a scheduled sales tax reduction in 2030.

Rep. Tony Bacala

The Republican chairman of the Louisiana House Ways and Means Committee, who expressed the need to evaluate the impact of recent tax reforms before pursuing additional changes.

Gov. Jeff Landry

The Republican governor of Louisiana who urged the legislature to implement the 3% flat income tax in 2025.

Got photos? Submit your photos here. ›

What they’re saying

“We discussed with leadership and decided this year we needed to watch revenues.”

— Rep. Danny McCormick

“Those things you can't adjust on the fly. You really have to plan three or four years out to make sure that we'll actually be able to lower that sales tax as we promised our consumers.”

— Sen. Cameron Henry, Senate President

“It's a path forward to get our children to stay in Louisiana and to bring some of our young people back.”

— Rep. John Wyble

“Some sense that we need a little longer to evaluate our tax reforms just implemented.”

— Rep. Tony Bacala, House Ways and Means Committee Chairman

What’s next

The Louisiana Legislature will likely revisit the issue of income tax cuts in future legislative sessions, once the impact of the recent 3% flat tax can be more fully assessed.

The takeaway

Louisiana lawmakers are taking a cautious approach to further income tax reductions, prioritizing fiscal planning and the evaluation of recent tax changes over immediate additional cuts. This reflects a broader recognition of the need to balance tax relief with the state's long-term budgetary obligations and economic competitiveness.