If you live in Louisiana, you might be wondering how much money you have to bring in to have to file state income taxes. The good news is that because Louisiana has a progressive tax structure, different income levels are subject to various tax rates. The amount you must earn before you must file will therefore depend on your particular circumstances.
If a taxpayer’s gross income for the tax year 2021 is greater than $12,500 or their adjusted gross income is greater than $7,950, the Louisiana Department of Revenue requires them to file a state income tax return. The thresholds are higher for married couples filing jointly, at $25,000 for gross income and $15,900 for adjusted gross income. The thresholds are even higher if you are claiming dependents, at $50,000 for gross income and $31,800 for adjusted gross income.
The Louisiana Department of Revenue website should be checked for the most recent information as these criteria are subject to change each year, as such. Additionally, even if your income is below these criteria, you can still be obliged to file if you’re self-employed or have other sources of income.
Moving on to company taxes, North Carolina has the lowest corporate tax rates with a flat rate of 2.5%. Ohio and Nevada, both of which have flat rates of 3%, are next in line. However, with a corporation tax rate of 12%, Iowa has the highest rate, followed by Pennsylvania with a rate of 9.99% and Minnesota with a rate of 9.8%.
Some states combine income taxes with other business taxes, like property and sales taxes, when it comes to company taxes. The Tax Foundation reports that New Jersey, followed by New York and California, has the nation’s highest overall corporate tax burden. On the other end of the scale, Wyoming, South Dakota, and Alaska have the lowest overall corporate tax burdens of all the states.
To sum up, your unique circumstances will determine how much you must earn to file income taxes in Louisiana, but for tax year 2021, the thresholds are $12,500 for gross income and $7,950 for adjusted gross income. The lowest corporation tax rates are in North Carolina, while the highest are in Iowa. Wyoming, South Dakota, and Alaska have the lowest total business tax burdens, whereas New Jersey has the highest.