Louisiana State Income Tax Withholding

Reference Number: NFC-25-1740487316
Published: February 26, 2025
Effective: Pay Period 02, 2025

Summary

The State Income Tax withholding for Louisiana is being changed effective January 1, 2025. This update will include the following changes:

The annual exemption calculation for personal exemptions has been replaced by a standard deduction.
The annual exemption calculation for dependent exemptions has been removed.
The standard deduction for single filers is $12,500.
The standard deduction for Married and Head of Household filers is $25,000.
The income tax tables have been replaced by a flat tax rate of 3.09%.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:	LA
State Tax Withholding State Code:	22
Acceptable Exemption Form:	L-4
Basis for Withholding:	State Exemptions
Acceptable Exemption Data:	S/0/M, Number of Exemptions
TSP Deferred:	Yes
Special Coding:	None
Additional Information:	When the Employee Marital Status (EMPE-MAR- STAT) field is blank or invalid the default value used will be Single. The Employee No Personal Exemption (EMPE-NO- PERS-EXEMPT) is used as follows: 0 - no standard deduction is claimed 1 - standard deduction is claimed and will be applied based on marital status 2 - standard deduction is claimed and will be applied based on marital status Note: Any employee may claim two (2) personal exemptions. Employees claiming two (2) personal exemptions must use the married taxpayer formula.

Withholding Formula (Effective Pay Period 02, 2025)

Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
Subtract the employee's standard deduction shown in the Standard Deduction Table below to determine the employee's taxable income.

Marital Status	Standard Deduction
No Standard Deduction Claimed	$0.00
Employee is SINGLE and claims standard deduction	$12,500
Employee is MARRIED and claims standard deduction	$25,000
Employee is HEAD OF HOUSEHOLD and claims standard deduction	$25,000

Note: If any employee elects 2 personal exemptions, they are directed, per the State of Louisiana guidance, to select MARRIED as their Marital Status so that they will receive the proper credit for these two exemptions. (See the Louisiana Form L-4, Block A, Bullet #3 and also Step #3 below it.)

Multiply the taxable income by 3.09% to get the annual tax.
Divide the annual Louisiana tax withholding calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Louisiana tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select Taxes from the Publications Library menu to launch the tax map U.S. Income Tax Formulas. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.