Louisiana Tax Reform Includes New Flat Income Tax Rates and Repeal of Corporation Franchise Tax

The Governor of the U.S. State of Louisiana signed several tax reform bills into law on 4 December 2024. The main bills include the following:

• House Bill (HB) 2, which provides for a change in the corporate income tax rates to a flat rate of 5.5% with effect from 1 January 2025;
• House Bill (HB) 3, which provides for the repeal of the corporation franchise tax with effect from 1 January 2026, which is currently levied at a rate of USD 2.75 for each USD 1,000;
• House Bill (HB) 8, which provi…