Effective January 1, 2025, Louisiana has a completely new withholding tax formula as part of major tax reform legislation. This reform introduces a flat personal income tax rate of 3%, replacing the previous tiered system that had rates ranging from 1.85% to 4.25%. Additionally, the standard deduction will increase to $12,500 for single filers and those married filing separately, and to $25,000 for married couples filing jointly.
New Louisiana Withholding Rate for 2025: 3.09%.
The new Louisiana withholding tables have been updated inside our Payroll Mate 2025 payroll software. To learn more and to download a free demo, please visit:
https://www.realtaxtools.com/payrollsoftware/payroll_software.html
LOUISIANA WITHHOLDING TAX FORMULAS (Effective January 1, 2025)
Variables:
W = Withholding tax per pay period
S = Employee’s salary per pay period
N = Number of pay periods per year
For Taxpayers Not Claiming a Standard Deduction:
W = S * 0.0309
For Single or Married-Separate Taxpayers Claiming the Standard Deduction:
W = (S – (12500 / N)) * 0.0309
For Married-Joint Return, Qualified Surviving Spouse, or Head of Household Taxpayers Claiming the Standard Deduction:
W = (S – (25000 / N)) * 0.0309
Example 1: No Standard Deduction
Employee: John Doe
Salary: $1,000 per week
Pay Periods: 52 (weekly)
Formula: W = S * 0.0309
Calculation: W = 1000 * 0.0309 = $30.90
Withholding: $30.90 per week
Example 2: Single, Claiming Standard Deduction
Employee: Jane Smith
Salary: $2,500 bi-weekly
Pay Periods: 26 (bi-weekly)
Formula: W = (S – (12500 / N)) * 0.0309
Calculation: W = (2500 – (12500 / 26)) * 0.0309 = $62.39
Withholding: $62.39 per bi-weekly paycheck
Example 3: Married Filing Jointly, Claiming Standard Deduction
Employee: Bob Johnson
Salary: $5,000 semi-monthly
Pay Periods: 24 (semi-monthly)
Formula: W = (S – (25000 / N)) * 0.0309
Calculation: W = (5000 – (25000 / 24)) * 0.0309 = $122.31
Withholding: $122.31 per semi-monthly paycheck
Example 4: Head of Household, Claiming Standard Deduction
Employee: Sarah Williams
Salary: $3,200 bi-weekly
Pay Periods: 26 (bi-weekly)
Formula: W = (S – (25000 / N)) * 0.0309
Calculation: W = (3200 – (25000 / 26)) * 0.0309 = $69.17
Withholding: $69.17 per bi-weekly paycheck
Example 5: Married Filing Separately, Claiming Standard Deduction
Employee: Mike Brown
Salary: $4,500 monthly
Pay Periods: 12 (monthly)
Formula: W = (S – (12500 / N)) * 0.0309
Calculation: W = (4500 – (12500 / 12)) * 0.0309 = $106.86
Withholding: $106.86 per monthly paycheck