Self-employed taxes and LLC costs in Louisiana, 2026
Louisiana rebuilt its income tax around one flat rate, ended entity tax on S corporations and raised its LLC fees in October 2026.
Total tax on this income in 2026
$19,784
Put aside 23% of each payment · $4,946 per quarter
| Self-employment tax (15.3%) | $12,010 |
| Federal income tax | $5,790 |
| Louisiana income tax | $1,984 |
| QBI deduction used | $12,579 |
| Effective rate on all income | 23.3% |
With an S corp election and a $34,000 salary, about $3,706 less tax (check it).
Computed by Radif Partners from IRS and Louisiana agency documents read on October 15, 2026 · How we calculate
Louisiana now taxes individual income at a flat 3 %, with a large standard deduction, so a single freelancer with $75,000 of profit owes $1,705 to the state and $17,200 in all after federal income tax and self-employment tax; a married couple filing jointly on the same profit owes $1,319 to Louisiana. Two business changes take effect in 2026: S corporations stop paying Louisiana corporation income tax at the entity level, and the corporation franchise tax is repealed. On the LLC side, fees went up on October 1, 2026: Articles of Organization cost $125 and the annual report $35, so five years of state fees reach $300. At $120,000 of profit and a $50,000 salary, the S election saves $5,230 in our model after $2,000 of payroll and filing costs.
Louisiana at a glance, 2026
| LLC filing fee | $125 |
| Annual Report | $35 a year |
| Income tax | flat 3 % |
| S corporation election | followed by the state |
| Tax on $75,000 of profit (single) | $17,200 in all, $1,705 to Louisiana |
Until 2025, a Louisiana S corporation could owe corporation income tax on part of its income and a corporation franchise tax on top. Both are gone for 2026. The Department of Revenue's bulletin explains that S corporations become full pass-throughs, with no Louisiana corporation income tax at the entity level (LDR Revenue Information Bulletin 25-032), and the franchise tax is repealed for periods from 2026 (LDR, franchise tax repeal). For a small business owner, the S election in Louisiana now behaves the way it does in most states: the state looks through the company to the owner.
State income tax on a freelance profit
Louisiana income tax
$1,844
| State share of profit | 2.3% |
| Total with federal | $18,492 |
One rate, a wide deduction
The flat 3 % rate applies after a standard deduction set out in the 2026 estimated tax instructions (Form IT-540ES instructions 2026). The deduction is large enough that the effective rate on a modest profit stays low: $1,705 on $75,000, or $2,959 on $120,000, for a single filer. The Department warns that the final 2026 deduction may differ slightly from the figure in its withholding tables, so the result is an estimate within a few dollars. Estimated payments are due when your Louisiana tax after credits and withholding is expected to exceed $1,000 single or $2,000 joint, according to the same instructions. The due dates page lists the four federal dates, which Louisiana follows.
What an LLC costs after October 1, 2026
Act 921 of the 2026 Regular Session raised the fee for Articles of Organization from $100 to $125 and set the annual report at $35 (Louisiana Secretary of State, 2026 fee changes). With no franchise tax and no minimum tax, the yearly cost of an LLC is just that report, $35. Over ten years the fees reach $475. An LLC formed before October 1, 2026 paid the old $100 filing fee; the new amounts apply to filings made from that date. Since Louisiana charges nothing else to the LLC itself, the report is the only recurring state cost, and a one-owner LLC taxed by default changes nothing in the income tax computed above. The LLC cost comparison puts these amounts beside other states.
The PTE election
Entities taxed as partnerships or S corporations can still elect to be taxed at the entity level on Form R-6980, which matters mainly to owners above the federal SALT limit. The Department's FAQ on the election points to the flat rate for periods from 2025, though the rate for electing entities was not separately confirmed (LDR, PTE election FAQ). Parishes and cities may levy occupational license taxes on businesses, which this page does not cover.