Louisiana Side Hustle Tax Calculator
Calculate your Louisiana state tax (3%), federal tax, and self-employment tax on 1099 income.
Last updated: January 2026 · Data from IRS Rev Proc 2024-40
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.
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.
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.
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.
Common Deductions for Louisiana Freelancers
Common deductions for Louisiana freelancers include: - Home office expenses - Business mileage (67 cents/mile for 2025) - Equipment and supplies - Professional development - Louisiana follows federal deduction rules for most business expenses
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.
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