House Bill No. by Representative Wyble proposes significant changes to Louisiana's income tax structure by reducing the tax rate on individual net income and increasing the standard deduction for taxpayers. The bill amends R.S. 47:32(A) to establish a three-tiered tax rate system, starting with a 3% rate for taxable years before January 1, 2027, reducing to 2% for the year 2027, and further decreasing to 1.75% starting January 1, 2028. Additionally, the standard deduction for single and married-separate filers will increase from $12,500 to $25,000 in 2027 and to $50,000 in 2028. For other filing statuses, the deduction will remain at 200% of the amount for single and married-separate filers.

The bill also includes provisions for the annual adjustment of the standard deduction based on the Consumer Price Index (CPI-U), although the implementation of this adjustment has been postponed from 2026 to 2029. The proposed changes will take effect on January 1, 2026, and will apply to all taxable periods beginning on or after that date. Overall, the bill aims to provide tax relief to individuals by lowering tax rates and increasing deductions, thereby potentially enhancing the financial well-being of Louisiana residents.

Statutes affected:
HB645 Original: 47:32(A)