How LLC Owners Save on Taxes in 2026

Louisiana 2026 Tax Changes — What the One Big Beautiful Bill Act (OBBBA ) Means for Residents

On January 1, 2026, the federal tax landscape underwent a historic and positive transformation. The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, made permanent many of the major tax cuts from the 2017 Tax Cuts and Jobs Act (TCJA) and introduced new, powerful benefits for taxpayers. The long-feared 2026 “tax cliff” has been avoided.
For Louisiana residents, this is exceptionally good news. In a state with a dynamic economy driven by industries like energy, hospitality, and shipping, these permanent federal changes provide significant and welcome relief. This guide provides a clear, localized breakdown of how the permanent tax laws under OBBBA will impact your income, business, and financial strategy in 2026 and beyond.

Federal Changes Bring Relief to Louisiana Taxpayers

While Louisiana has its own state tax system, your federal tax bill is a major part of your overall financial picture. OBBBA has made that picture much brighter.

Lower Federal Tax Brackets are PERMANENT

The biggest news is that the lower individual income tax rates from the TCJA are now permanent. The anticipated jump in federal tax rates has been avoided.

👉 Louisiana Impact: This is a crucial win for Louisiana’s working families. For oil and gas workers with high overtime, hospitality professionals in New Orleans, and dual-income households in Baton Rouge and Lafayette, having lower, predictable federal tax rates provides much-needed financial stability.

The Federal Standard Deduction is PERMANENT

The higher federal standard deduction, which simplifies tax filing for millions, is also here to stay.

👉 Louisiana Impact: A permanent, higher federal standard deduction is a direct benefit for the majority of Louisiana residents. It provides a substantial, straightforward deduction on your federal return, lowering your taxable income without the need for complex itemization.

The QBI Deduction is PERMANENT and ENHANCED (Federal Level)

This is the most critical update for Louisiana’s business community. The 20% Qualified Business Income (QBI) Deduction is not expiring. OBBBA has made it a permanent part of
the federal tax code and even improved it.

Important Note for Louisiana: Louisiana is a non-conforming state, meaning it does not offer a state-level QBI deduction. However, this powerful 20% deduction remains fully available on your federal tax return.

This is a major federal benefit for Louisiana’s:

Key OBBBA Enhancements to QBI:

  1. Permanence: The 20% federal deduction is locked in for 2026 and beyond.
  2. Minimum Deduction: A new $400 minimum federal deduction is available for any business with at least $1,000 of qualified income. 

👉 Louisiana Impact: For the thousands of small businesses that are the backbone of Louisiana’s economy, the permanent federal QBI deduction provides certainty and significant federal tax savings. Strategic planning to maximize this federal benefit is more important than ever.

New Federal Tax Breaks for Louisiana Residents

OBBBA also introduced several new federal deductions that will directly benefit many in Louisiana:
New Federal Tax Breaks for Louisiana Residents

Louisiana-Specific Tax Considerations for 2026

Louisiana’s State Tax and Federal AGI

Louisiana has its own income tax brackets and rules. Because the state uses federal Adjusted Gross Income (AGI) as the starting point for its calculations, the permanent federal deductions under OBBBA help keep your AGI lower. This provides a positive starting point for calculating your Louisiana state tax, even though state rates are applied differently.

Louisiana’s State Tax and Federal AGI

A Major Win for Oil, Gas, and Hospitality Workers

The new deductions for overtime and tip income are game-changers for two of Louisiana’s most important industries. For the first time, a significant portion of the extra income earned through hard work in the energy sector or from providing excellent service in the tourism industry can be deducted on your federal return, lowering your overall tax burden.

A Major Win for Oil, Gas, and Hospitality Workers

Real Estate in a Diverse Market

For property owners in markets like New Orleans, Baton Rouge, and Lafayette, OBBBA brings welcome news. The 100% bonus depreciation for qualified property is now permanent. This allows real estate investors to immediately write off the cost of certain assets on their federal return, making strategies like cost segregation incredibly powerful for both commercial and residential rental properties.
Real Estate in a Diverse Market

What Louisiana Taxpayers Should Do Now

Louisiana 2026 Tax FAQ

 No — QBI is federal-only.

 Rates stay the same, but taxable income rises due to federal changes.

Yes — child credit reductions and deductible changes impact many.

Yes — depreciation and documentation rules tighten.

 Yes — federal bracket changes increase taxes on withdrawals.

Get Your Personalized 2026 Louisiana Tax Plan

The tax landscape has permanently shifted in your favor. Don’t operate on outdated assumptions. A personalized strategy session will ensure you are structured to maximize every new and permanent benefit under OBBBA, fully integrated with Louisiana’s unique economic and tax environment.

Because tax situations vary by individual and business, many Louisiana residents choose to work with a qualified tax professional. You can explore available Louisiana tax services here:

Book a Free Strategy Call and Meet Your Match.

Professional, Licensed, and Vetted MERNA™ Certified Tax Strategists Who Will Save You Money.