Louisiana Announces Major Tax Relief for Middle-Class Families

Got story updates? Submit your updates here. ›

Louisiana Governor Jeff Landry has announced significant state income tax relief measures, including nearly tripling the standard deduction to $25,000 and doubling the annual retirement income exemption to $12,000 for taxpayers aged 65 and older. These changes are expected to result in larger tax refunds for many middle-class families filing their 2025 state returns.

Why it matters

The tax reforms are aimed at providing meaningful financial relief to Louisiana's middle-class families and retirees, allowing them to keep more of their hard-earned income. This could have a positive impact on household budgets and spending power in the state.

The details

The headline change is the near tripling of Louisiana's standard deduction, which means families will pay no state income tax on their first $25,000 of income. Governor Landry framed this in terms of everyday savings, comparing it to the cost of a car payment, gas, or groceries. For seniors and retirees, the reform doubled the annual retirement income exemption to $12,000 for taxpayers aged 65 and older, which could translate to nearly $49,000 in tax-free income for a married couple over 65.

• Louisiana taxpayers will see the changes reflected in their 2025 state income tax returns.
• The tax reforms were passed during the 2024 Tax Reform Special Session in Baton Rouge.

What’s next

Louisiana taxpayers should carefully review their 2025 state income tax returns to ensure they are taking advantage of the new standard deduction and retirement income exemption changes.