![]() ![]() The Act also continued the suspension of the lower tier of the tax ($1.50) through corporation franchise tax periods ending on or before November 30, 2023. Effective for franchise tax periods beginning on or after January 1, 2023, Act 389 reduced the tax rate to a single rate of $2.75 for each $1,000, or major fraction thereof in excess of $300,000 of capital employed in Louisiana. ![]() The new tax rates are 3.5% on the first $50,000 of net income, 5.5% on the next $100,000 of net income, and 7.5% on the excess over $150,000.Īlso, some provisions of Act 389 of the 2021 Regular Session of the Louisiana Legislature became effective. Effective for income tax periods beginning on or after January 1, 2022, Act 396 repealed the federal income tax deduction in exchange for reduced tax rates. With the passage of Constitutional Amendment #2, the provisions of Act 396 of the 2021 Regular Session of the Louisiana Legislature became effective. The calculation for Louisiana’s Excess Federal Itemized Personal Deductions remains the same, except that medical expenses must be deductible at the federal level and exceed the federal standard deduction for the taxpayer’s filing status. ![]() The rates are available on our individual income tax page under the heading "Determination of Tax". Effective for income tax periods beginning on or after January 1, 2022, Act 395 repealed the federal income tax deduction and limits Louisiana’s Excess Federal Itemized Personal Deductions to medical expenses in exchange for reduced tax rates. With the passage of Constitutional Amendment #2, the provisions of Act 395 of the 2021 Regular Session of the Louisiana Legislature became effective. The inflation changes are for tax year 2022, meaning they "generally apply to tax returns filed in 2023," the IRS said.2022 Income & Franchise Tax Changes Individual Income Tax The standard deduction, which is claimed by the majority of taxpayers, will rise to $25,900, up from $25,100, in 2022 for married couples filing jointly.įor individuals, the new maximum will be $12,9, up from $12,550, the IRS said. Incomes of $10,275 or less for single filers and $20,550 or less for joint filers: 10%.Incomes greater than $10,275 for single filers and $20,550 for joint filers: 12%.Incomes greater than $41,775 for single filers and $83,550 for joint filers: 22%.Incomes greater than $89,075 for single filers and $178,150 for joint filer: 24%.Incomes greater than $170,050 for single filers and $340,100 for joint filers: 32%.Incomes greater than $215,950 for single filers and $431,900 for joint filers: 35%.Incomes greater than $539,900 for single filers and $647,850 for joint filers: 37%.The federal income tax rates for 2022 will be: The amount of additional tax paid on additional income will also change in 2022. $19,400 for heads of households, which is a $600 increase. ![]() $12,950 for single filers and married people filing separately, which is a $400 increase.$25,900 for married couples filing jointly, which is an $800 increase.How much the standard deduction will increaseįor tax year 2022, the standard deduction will be: Note: The brackets for Qualifying Widow(ers) are the same as for Married Filing Jointly status. The changes will apply to 2022 tax returns that are filed in 2023. The tax bracket-specific income ranges can shift slightly each year due to inflation adjustments, so you’ll want to reference the year when you review income tax brackets. Most tax bracket cut-off points rose about 3% compared to the 2021 filing season due to a recent inflation surge, marking the largest increase in four years. The Internal Revenue Service announced November 10 his annual adjustments to more than 60 tax-related provisions - notably, including an increase in the amount of the standard deduction and higher federal income tax brackets. The IRS will adjust federal income brackets and the standard deduction that reflect the one-month increase in consumer prices for 2022 inflation. ![]()
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