2025 Tax Year

Louisiana Side Hustle Tax Calculator

Calculate your Louisiana state tax (3%), federal tax, and self-employment tax on 1099 income.

LA3%

4.6 million residents

No signup required

2025 rates

Always free

Last updated: January 2026 · Data from IRS Rev Proc 2024-40

Filing Status

State

W-2 Income (from your day job)

Side Hustle Income *

Business Expenses (optional)

Great news for Louisiana side hustlers: The Pelican State overhauled its tax system in 2025, replacing the old progressive brackets with a simple 3% flat tax rate. This makes Louisiana one of the most tax-friendly states in the South for freelancers. Whether you're driving for Uber in New Orleans, freelancing in Baton Rouge, or running an online business from anywhere in the state, you'll enjoy a simplified and lower tax burden.

Louisiana Tax Guide

How Side Hustle Taxes Work in Louisiana

Louisiana implemented major tax reform in 2025:

**Louisiana state tax (2025):** - Flat rate: 3% on all taxable income - Replaces the previous progressive system (2-6%) - One of the lowest flat rates in the country

**No local income taxes:** - New Orleans and all Louisiana parishes do not levy income taxes - You only pay the 3% state rate plus federal taxes

Louisiana's new 3% flat rate is lower than Arizona (2.5%) only and ties with North Dakota as one of the nation's lowest. This is a significant improvement from the previous 4.25% average rate.

Example

What Louisiana Side Hustlers Owe

Let's say you're a single filer in New Orleans with a $50,000 W-2 job and $16,000 in side hustle income from freelance music production, with $2,500 in business expenses.

**Your estimated taxes on the side hustle:** - Net self-employment income: $13,500 - Federal SE tax (15.3% of 92.35%): ~$1,909 - Federal income tax on side income: ~$2,970 (22% bracket) - Louisiana state tax (3%): ~$405 - **Total additional tax: ~$5,284**

Compare this to the old system where you'd have paid approximately $574 in state taxes—a savings of $169.

Important Dates

Louisiana Tax Deadlines 2025

Louisiana estimated tax deadlines: - **Q1**: April 15, 2025 - **Q2**: June 16, 2025 - **Q3**: September 15, 2025 - **Q4**: January 15, 2026

Use Louisiana Form R-1310 for state estimated tax payments.

Save Money

Common Deductions for Louisiana Freelancers

Louisiana freelancers benefit from one of the nation's lowest flat rates at 3%. **Home office expenses**: Claim dedicated business space using simplified ($5/sq ft) or actual expense method. **Business mileage**: 67 cents/mile for 2025; important for rideshare drivers in New Orleans, Baton Rouge, or Shreveport. **Equipment and supplies**: Computers, cameras, tools, and office supplies are deductible. **Professional development**: Courses, certifications, and educational materials related to your business qualify. **Health insurance premiums**: Self-employed individuals can deduct 100% of health insurance costs. **Retirement contributions**: SEP-IRAs and Solo 401(k)s reduce both federal and Louisiana taxable income. **Marketing expenses**: Website costs, business cards, and promotional materials are deductible. Louisiana follows federal deduction rules for most business expenses, so Schedule C deductions automatically reduce your LA taxes. With the new 3% flat rate, Louisiana is now one of the most tax-friendly states for side hustlers—only surpassed by no-income-tax states and Arizona's 2.5%.

Common Questions

Louisiana Side Hustle Tax FAQ

What is Louisiana's new tax rate?

Louisiana implemented a flat 3% income tax rate in 2025, replacing the previous progressive system with rates up to 6%. This is one of the lowest rates in the country.

Does New Orleans have a city income tax?

No, New Orleans and all Louisiana parishes do not have local income taxes. You only pay the state 3% flat rate plus federal taxes.

How much will I save under the new system?

Most side hustlers will save 10-30% on their Louisiana state taxes compared to the old progressive system. The flat 3% rate benefits everyone.

Do I need to register my side hustle in Louisiana?

Sole proprietors using their legal name don't need state registration. If using a trade name (DBA), file with the Louisiana Secretary of State. LLCs must register with the Secretary of State. Sellers may need a Louisiana Sales Tax Certificate.

When are Louisiana quarterly estimated taxes due?

Louisiana follows federal quarterly deadlines: April 15, June 16, September 15, and January 15. Use Form R-1310 for payments. With only a 3% rate, Louisiana quarterly payments are among the lowest in the nation.

Is Louisiana good for side hustlers now?

Yes, Louisiana's 3% flat rate makes it one of the most tax-friendly states for self-employed individuals. Only no-income-tax states and Arizona (2.5%) offer lower rates. The 2025 tax reform significantly improved Louisiana's competitiveness.

Compare Tax Rates