Bill > HB489

This bill modifies the individual income tax rates in Louisiana by introducing a two-tier tax structure. Under the new law, individuals will pay a 3% tax rate on the first $500,000 of net income, and a 4.75% tax rate on any net income exceeding $500,000. This represents a change from the previous flat 3% tax rate on all net income. The bill specifies that these new tax rates will apply to taxable periods beginning on or after January 1, 2026, effectively creating a progressive tax system that imposes a higher tax rate on higher income earners. By implementing this graduated tax rate, the state aims to potentially generate more revenue from higher-income taxpayers while maintaining a relatively low tax rate for those with lower incomes.