Louisiana Payroll Compliance
Every rate, wage base, and threshold Louisiana employers need for 2026 — sourced from Louisiana Dept. of Revenue and the Louisiana Workforce Commission — including the lowest SUI wage base of any state we cover and this year's failed minimum wage push.
Minimum Wage & Hours
Louisiana has no minimum wage law of its own — one of only five states nationwide without one, alongside Alabama, Mississippi, South Carolina, and Tennessee. A 2026 push to establish a state minimum wage failed in committee.
| Item | 2026 Value | Notes |
|---|---|---|
| Effective minimum wage | $7.25/hr | Federal FLSA controls entirely; no state minimum wage law exists |
| HB 353 (2026) | Rejected | Would have set $12/hr rising to $15/hr by 2029; rejected 7-5 in committee, April 9, 2026 |
| SB 230 (pending) | Still in legislature | Would set a $10.25/hr constitutional minimum, effective Jan 2027 if passed |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state overtime statute |
State Income Tax Withholding
Louisiana moved to a flat 3.0% income tax rate effective January 1, 2025, after voters approved Constitutional Amendment 2 in November 2024 — replacing the prior graduated system (1.85%–4.25%) and eliminating Louisiana’s unusual federal-tax-deductibility provision at the same time.
| Item | 2026 Value | Notes |
|---|---|---|
| Flat withholding rate | 3.0% | Effective since Jan 1, 2025, per Constitutional Amendment 2 |
| Prior system (pre-2025) | 1.85% – 4.25% | Graduated brackets, eliminated alongside the flat-rate switch |
| Personal exemption | $12,500 single / $25,000 joint | Reduces Louisiana taxable income before the 3.0% rate applies |
| Federal tax deductibility | Eliminated | Louisiana previously allowed a full deduction of federal tax paid — removed alongside the flat-rate switch |
| Required certificate | Form L-4 | Permits one exemption per person claimed on the employee's state return |
| Local income tax | None | No Louisiana parish imposes a local income tax |
Paid Leave
Louisiana has no state disability insurance, no mandatory paid family/medical leave, and no statewide paid sick leave. Federal FMLA is the only job-protected leave baseline.
Unemployment Insurance (SUI)
Louisiana’s SUI wage base is $7,700 — among the lowest in the country and one of only four states where the base actually decreased for 2026 (alongside Iowa, Missouri, and Oklahoma). At the 1.16% new-employer rate, maximum annual SUI cost is roughly $89 per employee.
| Item | 2026 Value | Notes |
|---|---|---|
| SUI taxable wage base | $7,700 | One of only 4 states with a lower base than 2025 |
| New employer rate | 1.16% | ≈$89.32/employee/year maximum at this rate |
| Experienced range | 0.09% – 6.20% | Based on benefit-charge-to-wages ratio |
| Registration | Louisiana Workforce Commission | laworks.net; assigns employer account number and initial rate |
| Filing | Quarterly | Due Apr 30 / Jul 31 / Oct 31 / Jan 31 |