House Bill No. by Representative Mandie Landry proposes to amend the current income tax structure in Louisiana by changing the existing flat tax rate of 3% on individual net income. The bill introduces a two-bracket system where individuals will be taxed at a rate of 3% on the first $500,000 of net income, and a higher rate of 4.75% will apply to any net income exceeding that threshold. This change aims to create a more progressive tax system, allowing for a differentiated approach based on income levels.

The provisions of this bill will take effect for taxable periods beginning on or after January 1, 2026. The amendment to R.S. 47:32(A) reflects these changes, replacing the previous flat rate with the new tiered rates. This legislative change is intended to adjust the state's income tax framework to better align with varying income levels among individuals.

Statutes affected:
HB489 Original: 47:32(A)