Louisiana Business Taxes
Corporate Income Tax
Corporations will pay tax on net income computed at the following rates:
- 4% on the first $25,000 of net income
- 5% on the next $25,000
- 6% on the next $50,000
- 7% on the next $100,000
- 8% on the excess over $200,000
Corporate Franchise Tax
$1.50 for each $1,000 or major fraction thereof up to $300,000 of capital employed in Louisiana, and $3 for each $1,000 or major fraction thereof in excess of $300,000 of capital employed in Louisiana, with a the minimum tax of $10 per year. The initial corporation franchise tax is $10.
Occupational License Tax
The localities of Louisiana are authorized by state law to require an occupational license for most businesses. The tax rate varies depending on type of business. The occupational license tax is usually based on gross revenues, but in some cases is calculated on certain net revenues. In other cases, the tax can be a flat fee.
Sales/Use Tax
- The aggregate rate of state sales tax is 4%
- Louisiana use tax is calculated at the rate of 8%
Unemployment Compensation Insurance
The tax is payable quarterly and is equal to a percentage (currently set at 0.10% to 6.20%) of the first $7,000 of each employee’s salary or wages for the calendar year. Louisiana’s rates rank among the lowest unemployment insurance tax rates in the nation.
Miscellaneous Taxes
- State severance tax applicable to natural resources
- State hazardous waste storage and disposal tax
- Both state and local alcoholic beverage taxes, each of which can require state and local alcoholic beverage licenses
- Local amusement taxes and local chain store taxes
- Special license taxes imposed on gross receipt of public utilities
- A tax on gross premiums of insurance companies.
Source: Louisiana Department of Revenue Website
Louisiana Department of Labor 2007 Unemployment Insurance Contribution Rate Table
