Effective January 1, 2025, Louisiana has repealed its graduated income tax rates under RS 47:32(A) and adopted a flat income tax rate of 3%. Although this is not reflected in the applicable statute yet, see HB10. HB10 was signed into law as Act 11 on December 4, 2024.
Under LAC 61:1.1525(A), if Louisiana income tax withholding is required on gambling winnings, it must be withheld at the highest rate provided under RS 47:32. Under Act 11, the highest rate under RS 47:32(A) is 3%, effective January 1, 2025. Accordingly, a 3% rate applies when Louisiana income tax withholding is required on gambling winnings, effective January 1, 2025. For tax years 2022 through 2024, the applicable rate was 4.25%.
FAQs about the income tax rate change can be found here.
