Barbara C. Neff | Published Sep 29, 2025 10 Min
Louisiana offers a vibrant environment for business, with over 511,000 small businesses, employing over 54% of the state’s workforce. Whether you’re an established business owner or planning to start a new venture, understanding the tax landscape in Louisiana is crucial. This guide provides an overview of the various taxes small businesses in Louisiana must navigate, including tax rates, filing requirements, and deadlines.
Types of Business Taxes in Louisiana
Business owners in Louisiana may be subject to various taxes depending on their business structure, activities, and revenue. Here’s a breakdown of the main types of taxes:
- Corporation Income Tax
- Applicable Entities: C corporations, S corporations, and entities treated as corporations for federal tax purposes
- Tax Rate: 5.5%
- Filing Requirements: File Form CIFT-620 by the 15th day of the fifth month after the tax year ends.
- Estimated Payments: This is required if liability exceeds $1,000. Payments are due on the 15th day of the following month based on the period in which the estimated tax payment requirement was met.
- Corporation Franchise Tax
- Applicable Entities: C corporations, S corporations, and entities treated as corporations for federal tax purposes
- Tax Rate: $2.75 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana; initial franchise tax of $110
- Filing Requirements: File Form CIFT-620 by the 15th day of the fifth month after the tax year ends.
- Pass-Through Entity (PTE) Tax
- Applicable Entities: S corporations, partnerships, and LLCs taxed as a corporation at the federal level
- Tax Rate: 1.85% on the first $25,000 of Louisiana net income, 3.5% on the next $75,000 (not in excess of $100,000), 4.25% on the excess above $100,000
- Filing Requirements: File Form CIFT-620 by the 15th day of the fifth month after the tax year ends.
- Sales and Use Tax
- Applicable Activities: Retail sales and rentals, certain services
- Tax Rate: 5% (local rates may apply)
- Filing Requirements: File Form R-1029 by the 20th of the month following the close of the calendar month or calendar quarter of the reporting period, based on sales volume.
- Withholding Tax
- Applicable Entities: Employers with employees
- Tax Rate: Varies
- Filing Requirements: File Form L-1 quarterly by April 30, July 31, October 31, and January 31. Semi-monthly payers must file by April 15, July 15, October 15, and January 15.
- Estimated Payments: Payments due quarterly, monthly, or semi-monthly based on withholding amounts.
- Unemployment Insurance Tax
- Applicable Entities: Employers with employees
- Tax Rate: Varies based on the business’s experience rating
- Wage Base: First $7,700 of wages per employee per year
- Filing Requirements: File quarterly reports online by April 30, July 31, October 31, and January 31.
- Personal Property Tax
- Applicable Entities: Businesses using personal property
- Tax Rate: Based on property type and value
- Filing Requirements: Report annually to the county assessor by April 1.
- Partnership Tax
- Applicable Entities: Partnerships with nonresident members
- Tax Rate: 4.25% on distributive share income
- Filing Requirements: File Form IT-565 by the 15th day of the fifth month following the close of the tax year.
How to File and Pay Louisiana Business Taxes
Business taxes in Louisiana can be filed and paid through various methods:
- Online Filing and Payment: Use the Louisiana Taxpayer Access Point (LaTAP) for electronic submissions and payments.
- Mail: Send forms and payments to the address indicated (where available).
Important Deadlines
Keep track of these key dates to avoid penalties:
- Corporation Income and Franchise Tax Returns: Due by the 15th day of the fifth month after the tax year ends
- Estimated Tax Payments: Due quarterly on the 15th day of the following month based on the period in which the estimated tax payment requirement was met
- Sales and Use Tax Returns: Due monthly or quarterly filing based on sales volume
- Withholding Tax Returns: Due quarterly by April 30, July 31, October 31, and January 31 (or, for semi-monthly payers, April 15, July 15, October 15, and January 15)
- Unemployment Insurance Reports: Due quarterly by April 30, July 31, October 31, and January 31
Tax Credits and Incentives
Louisiana offers several tax credits and incentives for small businesses, including:
- Research and Development Tax Credit: Get up to a 30% tax credit for companies that have incurred qualified research expenditures in Louisiana, with no cap and no minimum requirement.
- Digital Interactive Media and Software Program: This is a 25% tax credit for qualified payroll for in-state labor and an 18% credit on qualified production expenditures for companies producing digital interactive media products or platforms in the state, with no cap or minimum requirement.
Learn more with Gusto’s guide to tax incentives for Louisiana businesses.
Louisiana’s business tax breakdown by business type
Business taxes can get complicated, so below, we’ve included a chart that breaks down the taxes different business structures usually pay.
Keep in mind that pass-through entities don’t pay federal income taxes themselves—the obligation is passed on to their business owners or shareholders, who pay them through their personal income tax returns.
| Business type | Personal income tax | PTE election tax | Corporate income and franchise tax | Sales and use tax | Withholding tax | Unemployment tax | Federal income taxes |
| C corporation | No | No | Yes | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes |
| S corporation | Yes (pass-through), if not making the PTE election | Yes, if it makes the election | Yes | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
| LLC | Yes (pass-through), if not making the PTE election | Depends on how it’s structured | Depends on how it’s structured | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
| Partnership | Yes (pass-through), if not making the PTE election | Yes, if it makes the election | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
| Sole proprietorship | Yes (pass-through) | No | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes, by way of individual income tax |
File your Louisiana small business taxes with Gusto
As a business owner, your time and energy are valuable, finite resources. So, instead of managing your taxes manually, let Gusto give you a hand. Our easy-to-use software automatically files all your payroll taxes each time you run payroll—freeing up your bandwidth for the work that matters most.
Learn how else Gusto can simplify the operations of your small business by creating an account today.
Louisiana Small Business Taxes: The Employer’s 2024 Guide
Louisiana offers a vibrant environment for business, with over 471,000 small businesses, employing about 53% of the state’s workforce. Whether you’re an established business owner or planning to start a new venture, understanding the tax landscape in Louisiana is crucial. This guide provides an overview of the various taxes small businesses in Louisiana must navigate, including tax rates, filing requirements, and deadlines.
Types of Business Taxes in Louisiana
Business owners in Louisiana may be subject to various taxes depending on their business structure, activities, and revenue. Here’s a breakdown of the main types of taxes:
- Corporation Income Tax
- Applicable Entities: C corporations, S corporations, and entities treated as corporations for federal tax purposes
- Tax Rate: 3.5% on the first $50,000, 5.5% on the next $100,000, 7.5% on the excess over $150,000
- Filing Requirements: File Form CIFT-620 by the 15th day of the fifth month after the tax year ends.
- Estimated Payments: This is required if liability exceeds $1,000. Payments are due on the 15th day of the following month based on the period in which the estimated tax payment requirement was met.
- Corporation Franchise Tax
- Applicable Entities: C corporations, S corporations, and entities treated as corporations for federal tax purposes
- Tax Rate: $2.75 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana; initial franchise tax of $110
- Filing Requirements: File Form CIFT-620 by the 15th day of the fifth month after the tax year ends.
- Pass-Through Entity (PTE) Tax
- Applicable Entities: S corporations, partnerships, and LLCs taxed as a corporation at the federal level
- Tax Rate: 1.85% on the first $25,000 of Louisiana net income, 3.5% on the next $75,000 (not in excess of $100,000), 4.25% on the excess above $100,000
- Filing Requirements: File Form CIFT-620 by the 15th day of the fifth month after the tax year ends.
- Sales and Use Tax
- Applicable Activities: Retail sales and rentals, certain services
- Tax Rate: 4.45% (local rates may apply)
- Filing Requirements: File Form R-1029 by the 20th of the month following the close of the calendar month or calendar quarter of the reporting period, based on sales volume.
- Withholding Tax
- Applicable Entities: Employers with employees
- Tax Rate: Varies
- Filing Requirements: File Form L-1 quarterly by April 30, July 31, October 31, and January 31. Semi-monthly payers must file by April 15, July 15, October 15, and January 15.
- Estimated Payments: Payments due quarterly, monthly, or semi-monthly based on withholding amounts.
- Unemployment Insurance Tax
- Applicable Entities: Employers with employees
- Tax Rate: Varies based on business’s experience rating
- Wage Base: First $7,700 of wages per employee per year
- Filing Requirements: File quarterly reports online by April 30, July 31, October 31, and January 31.
- Personal Property Tax
- Applicable Entities: Businesses using personal property
- Tax Rate: Based on property type and value
- Filing Requirements: Report annually to the county assessor by April 1.
- Partnership Tax
- Applicable Entities: Partnerships with nonresident members
- Tax Rate: 4.25% on distributive share income
- Filing Requirements: File Form IT-565 by the 15th day of the fifth month following the close of the tax year.
How to File and Pay Louisiana Business Taxes
Business taxes in Louisiana can be filed and paid through various methods:
- Online Filing and Payment: Use the Louisiana Taxpayer Access Point (LaTAP) for electronic submissions and payments.
- Mail: Send forms and payments to the address indicated (where available).
Important Deadlines
Keep track of these key dates to avoid penalties:
- Corporation Income and Franchise Tax Returns: Due by the 15th day of the fifth month after the tax year ends
- Estimated Tax Payments: Due quarterly on the 15th day of the following month based on the period in which the estimated tax payment requirement was met
- Sales and Use Tax Returns: Due monthly or quarterly filing based on sales volume
- Withholding Tax Returns: Due quarterly by April 30, July 31, October 31, and January 31 (or, for semi-monthly payers, April 15, July 15, October 15, and January 15)
- Unemployment Insurance Reports: Due quarterly by April 30, July 31, October 31, and January 31
Tax Credits and Incentives
Louisiana offers several tax credits and incentives for small businesses, including:
- Research and Development Tax Credit: Get up to a 30% tax credit for companies that have incurred qualified research expenditures in Louisiana, with no cap and no minimum requirement.
- Digital Interactive Media and Software Program: This is a 25% tax credit for qualified payroll for in-state labor and an 18% credit on qualified production expenditures for companies producing digital interactive media products or platforms in the state, with no cap or minimum requirement.
- Enterprise Zone Tax Credit: This is available to companies that create at least five permanent net full-time jobs within 24 months of their project start date or increase their current nationwide workforce by 10% within the first 12 months. Half of the new hires must come from targeted groups. Eligible businesses receive 1) either a $3,500 or $1,000 tax credit for each certified net new job created and 2) either a state sales/use tax rebate on qualifying capital expenses or a 1.5% investment tax credit.
Learn more with Gusto’s guide to tax incentives for Louisiana businesses.
Louisiana’s business tax breakdown by business type
Business taxes can get complicated, so below, we’ve included a chart that breaks down the taxes different business structures usually pay.
Keep in mind that pass-through entities don’t pay federal income taxes themselves—the obligation is passed on to their business owners or shareholders, who pay them through their personal income tax returns.
| Business type | Personal income tax | PTE election tax | Corporate income and franchise tax | Sales and use tax | Withholding tax | Unemployment tax | Federal income taxes |
| C corporation | No | No | Yes | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes |
| S corporation | Yes (pass-through), if not making the PTE election | Yes, if it makes the election | Yes | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
| LLC | Yes (pass-through), if not making the PTE election | Depends on how it’s structured | Depends on how it’s structured | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
| Partnership | Yes (pass-through), if not making the PTE election | Yes, if it makes the election | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes (pass-through) |
| Sole proprietorship | Yes (pass-through) | No | No | Yes, if applicable | Yes, if you hire employees | Yes, if you hire employees | Yes, by way of individual income tax |
File your Louisiana small business taxes with Gusto
As a business owner, your time and energy are valuable, finite resources. So, instead of managing your taxes manually, let Gusto give you a hand. Our easy-to-use software automatically files all your payroll taxes each time you run payroll—freeing up your bandwidth for the work that matters most.
Learn how else Gusto can simplify the operations of your small business by creating an account today. Learn how else Gusto can simplify the operations of your small business by creating an account today.
