Over the last decade, Louisiana has seen its total state revenue grow by 48 percent while making significant cuts to its personal income tax rate.

Louisiana did not have a history of cutting income taxes before 2020, but coming out of the pandemic, the state joined the tax-cut revolution with gusto. In 2022, Louisiana made a major cut, dropping the rate from 6 percent to 4.25 percent in one fell swoop, a 30 percent cut.

In the three years directly after the cut, total revenue (adjusted for population growth and inflation) grew by 5 percent, ending 2024 with per capita revenue at $10,480—more than $3,000 higher than it was in 2015.

Even when excluding the influx of federal cash, Louisiana has seen significant revenue growth. Since 2015, per capita revenue (excluding federal funds) has grown by 24 percent.

Bolstered by the success the state has seen so far, Louisiana decided to cut the rate again to a flat rate of 3 percent for the current 2025 tax year. This 3 percent rate will be one of the lowest in the country for 2025.