HLS 25RS-1175 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 645
BY REPRESENTATIVE WYBLE
TAX/INCOME TAX: Reduces the rate of the tax levied on the net income of individuals
and increases the amount of the standard deduction for all filers
1 AN ACT
2To amend and reenact R.S. 47:32(A) and 294, relative to income tax; to provide for the rate
3 of the tax levied on the net income of individuals; to provide for the standard
4 deduction; to provide for the amount of the standard deduction under certain
5 circumstances; to provide for the annual adjustment of the amount of the standard
6 deduction; to provide for applicability; to provide for an effective date; and to
7 provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:32(A) and 294 are hereby amended and reenacted to read as
10follows:
11 §32. Rates of tax
12 A. On individuals. (1) The For taxable years beginning before January 1,
13 2027, the tax to be assessed, levied, collected, and paid upon the taxable income of
14 an individual shall be computed at the rate of three percent on net income.
15 (2) Beginning January 1, 2027, through December 31, 2027, the tax to be
16 assessed, levied, collected, and paid upon the taxable income of an individual shall
17 be computed at the rate of two percent on net income.
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HB NO. 645
1 (3) Beginning January 1, 2028, and thereafter, the tax to be assessed, levied,
2 collected, and paid upon the taxable income of an individual shall be computed at the
3 rate of one and seventy-five one hundredths percent on net income.
4 * * *
5 §294. Standard deduction
6 A. A standard deduction shall be allowed in determining a taxpayer's tax
7 liability pursuant to this Part. Taxpayers are required to use the same filing status
8 on their return required to be filed under this Part as they used on their federal
9 income tax return.
10 B.(1) For tax year years 2025 and 2026, the amount of the standard
11 deduction shall be as follows:
12 (1)(a) Single Individual and Married-Separate$12,500.00
13 (2)(b) Married-Joint Return, a Qualified Surviving 200% of the dollar amount
14 Spouse, and Head of Household provided for Single Individuals
15 (2) For tax year 2027, the amount of the standard deduction shall be as
16 follows:
17 (a) Single Individual and Married-Separate$25,000.00
18 (b) Married-Joint Return, a Qualified Surviving200% of the dollar amount
19 Spouse, and Head of Household provided for Single Individuals
20 (3) For tax year 2028, the amount of the standard deduction shall be as
21 follows:
22 (a) Single Individual and Married-Separate$50,000.00
23 (b) Married-Joint Return, a Qualified Surviving200% of the dollar amount
24 Spouse, and Head of Household provided for Single Individuals
25 B. C. Beginning January 1, 2026 January 1, 2029, and thereafter, the amount
26 of the standard deduction provided in Subsection A B of this Section shall be
27 adjusted annually by an amount calculated by multiplying the amount of the prior
28 year's standard deduction by the percentage increase in the Consumer Price Index
29 United States city average for all urban consumers (CPI-U), as reported by the
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HB NO. 645
1 United States Department of Labor, Bureau of Labor Statistics, or its successor, for
2 the previous calendar year.
3 Section 2. The provisions of this Act shall be applicable to all taxable periods
4beginning on or after January 1, 2026.
5 Section 3. 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 645 Original 2025 Regular Session Wyble
Abstract: Increases the amount of the standard deduction over a three-year period for single
and married-separate filers from $12,500 to $50,000 and reduces the rate of the state
tax levied on the net income of individuals over a three-year period from 3% to
1.75%.
Present law requires a state tax to be assessed, levied, collected, and paid upon the net
income of individuals at the rate of 3%.
Proposed law retains present law for tax years ending before Jan. 1, 2027; however,
proposed law reduces the individual income tax rate beginning Jan. 1, 2027, through Dec.
31, 2027, from 3% to 2% and further reduces the rate beginning Jan. 1, 2028, and thereafter
from 2% to 1.75%.
Present law authorizes a standard deduction for resident taxpayers when determining a
taxpayer's tax liability, with the amount of the deduction dependent on the filing status of
the taxpayer claiming it. Present law provides that the amount of the standard deduction for
single and married-separate filers is $12,500 and the amount for all other filers is 200% of
the amount set for single and married-separate filers; however beginning Jan. 1, 2026, the
amount of the standard deduction shall be adjusted annually by the percentage increase in
the Consumer Price Index United States city average for all urban consumers (CPI-U), as
reported by the U.S. Dept. of Labor, Bureau of Labor Statistics.
Proposed law retains present law for tax years 2025 and 2026, relative to the amount of the
standard deduction for all filers; however, proposed law increases the amount of the standard
deduction for single and married-separate filers from $12,500 to $25,000 for tax year 2027,
and to $50,000 for tax year 2028 and thereafter. The amount of the standard deduction for
all other filers is 200% of the amount set for single and married-separate filers. Proposed
law maintains the annual adjustment of the standard deduction in accordance with changes
in the CPI-U; however, the first year of implementation of the annual adjustment is changed
from 2026 to 2029.
Proposed law is applicable to all taxable periods beginning on or after Jan. 1, 2026.
Effective January 1, 2026.
(Amends R.S. 47:32(A) and 294)
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