HLS 25RS-883 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 333
BY REPRESENTATIVE MCMAKIN
TAX/INCOME TAX: Reduces the rate of individual income tax incrementally over a
period of time before ultimately eliminating the tax
1 AN ACT
2To amend and reenact R.S. 47:32(A), relative to individual income tax; to provide for the
3 rate of the tax; to reduce the rate over a period of time; to provide for elimination of
4 the tax after a certain date; to provide for applicability; to provide for an effective
5 date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:32(A) is hereby amended and reenacted to read as follows:
8 ยง32. Rates of tax
9 A.(1) On individuals. The For taxable years beginning before January 1,
10 2026, the tax to be assessed, levied, collected, and paid upon the taxable income of
11 an individual shall be computed at the rate of three percent on net income.
12 (2) For taxable years beginning on or after January 1, 2026, the respective
13 rates of tax to be assessed, levied, collected, and paid upon the taxable income of an
14 individual shall be as follows:
15 (a) Beginning January 1, 2026, through December 31, 2026, the rate shall
16 be two and eight tenths percent.
17 (b) Beginning January 1, 2027, through December 31, 2027, the rate shall
18 be two and six tenths percent.
19 (c) Beginning January 1, 2028, through December 31, 2028, the rate shall
20 be two and four tenths percent.
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HB NO. 333
1 (d) Beginning January 1, 2029, through December 31, 2029, the rate shall
2 be two and two tenths percent.
3 (e) Beginning January 1, 2030, through December 31, 2030, the rate shall
4 be two percent.
5 (f) Beginning January 1, 2031, through December 31, 2031, the rate shall be
6 one and eight tenths percent.
7 (g) Beginning January 1, 2032, through December 31, 2032, the rate shall
8 be one and six tenths percent.
9 (h) Beginning January 1, 2033, through December 31, 2033, the rate shall
10 be one and four tenths percent.
11 (i) Beginning January 1, 2034, through December 31, 2034, the rate shall be
12 one and two tenths percent.
13 (j) Beginning January 1, 2035, through December 31, 2035, the rate shall be
14 one percent.
15 (k) Beginning January 1, 2036, through December 31, 2036, the rate shall
16 be eight tenths percent.
17 (l) Beginning January 1, 2037, through December 31, 2037, the rate shall be
18 six tenths percent.
19 (m) Beginning January 1, 2038, through December 31, 2038, the rate shall
20 be four tenths percent.
21 (n) Beginning January 1, 2039, through December 31, 2039, the rate shall
22 be two tenths percent.
23 (3) Beginning January 1, 2040, no tax shall be assessed, levied, collected, or
24 paid upon the taxable income of an individual.
25 * * *
26 Section 2. This Act shall be known and may be cited as the "Banish All
27Nonproductivity to Delete Income Tax Act" or "BANDIT Act".
28 Section 3. The provisions of this Act shall apply to taxable years beginning on or
29after January 1, 2026.
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HB NO. 333
1 Section 4. This Act shall become effective on January 1, 2026.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 333 Original 2025 Regular Session McMakin
Abstract: Reduces the rate of individual income tax incrementally over 15 years until the
tax is eliminated in 2040.
Present law provides for a state tax known commonly as the individual income tax. Provides
that the tax shall be assessed, levied, collected, and paid upon the taxable income of an
individual at the rate of 3% on net income.
Proposed law law provides that, beginning in tax year 2026, the individual income tax rate
shall be reduced by 0.20% each year, for a period of 15 years, thereby eliminating the state
income tax beginning Jan. 1, 2040.
Proposed law provides that it shall be known and may be cited as the "Banish All
Nonproductivity to Delete Income Tax Act" or "BANDIT Act".
Proposed law applies to taxable periods beginning on or after Jan. 1, 2026.
Effective Jan. 1, 2026.
(Amends R.S. 47:32(A))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.