Most states levy an income tax on their residents that is in addition to the federal income tax. Laws vary from state to state but in most states the state income tax is a tax on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities.
There are nine states that do not have a state income tax—including Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. But New Hampshire levies a tax on capital gains and Washington state recently enacted a tax on extraordinary profits from the sale of financial assets over $250,000.
In Louisiana (LA), residents are subject to both federal and state income taxes. The state income tax in Louisiana is levied on the annual earnings of individuals, corporations, trusts, limited liability companies, and other legal entities. The rates and rules for income taxation can vary, with different brackets and rates applicable to different levels of income. Louisiana's income tax system is progressive, meaning that higher income levels are taxed at higher rates. It's important for residents to understand their tax obligations and to file both federal and state income tax returns annually. Unlike the states mentioned that do not have a state income tax or only tax certain types of income, Louisiana has a more traditional state income tax structure.