Louisiana payroll taxes
Every tax withheld from a Louisiana paycheck or paid by the employer in 2026, with rates and wage limits.
Last verified November 2, 2026. Sources: news.bloombergtax.com, taxfoundation.org, oregon.gov.
| Tax | Employee pays | Employer pays | Wage limit |
|---|---|---|---|
| Social Security | 6.2% | 6.2% | $184,500 |
| Medicare | 1.45%* | 1.45% | No limit |
| FUTA | — | 0.6% | $7,000 |
| Louisiana SUTA | — | 1% (new) | $7,000 |
| Louisiana income tax | 3% | — | — |
*Plus 0.9% Additional Medicare Tax withheld on wages over $200,000. FUTA rate shown is net of the state credit.
State unemployment insurance
Louisiana charges new employers 1% on the first $7,000 each employee earns in a year. After a few years, the rate is based on the employer's layoff history and ranges from 0.09% to 6.2%. The new employer rate is the industry average, with a 1.0% floor and a 6.2% cap. The 1.0% here is the floor, not a typical figure. Range is 0.09%-1.94% for positive-rated and 2.2%-6.2% for negative-rated employers. The 2026 wage base fell from 2025.
Register and file with the Louisiana unemployment tax agency.
Income tax withholding
Louisiana has a flat income tax of 3% on taxable income.
Frequently asked questions
- What payroll taxes do employers pay in Louisiana?
- Social Security, Medicare, federal unemployment (FUTA) and Louisiana unemployment insurance (SUTA).
- What is the Louisiana SUTA wage base for 2026?
- $7,000 per employee.
- Does Louisiana require state income tax withholding?
- Yes. Employers withhold Louisiana income tax based on the employee's state withholding certificate or federal W-4.