Louisiana Mileage Deduction 2026: New 3% Flat Tax

Louisiana converted to a flat 3% income tax in 2025, a major reform that replaced three brackets. Every $1,000 you deduct saves $30 at the state level, on top of your federal savings.

At 15,000 business miles, you save roughly $326 in state taxes on top of about $4,056 federal. That is about $4,382 total.

The reform also raised the standard deduction to $12,500 for single filers and $25,000 for joint filers, nearly triple the previous amounts. Combined with your mileage deduction on Schedule C, that is a significant reduction in your state taxable income. Louisiana also now allows bonus depreciation for pass-through entities, which matters if you use the actual expenses method instead of the standard rate.

How to File

Deduct on federal Schedule C, Line 9 at 72.5¢/mile. Louisiana uses your federal adjusted gross income as the starting point, so the mileage deduction flows through to your state return. Keep a mileage log with the date, destination, purpose, and miles for each trip. Estimated payments are required if you expect to owe more than $1,000 (single) or $2,000 (joint).

The state does not require employers to reimburse mileage.

FAQ

Did the Louisiana tax reform change how mileage deductions work?

The mileage deduction itself works the same. But the higher standard deduction ($12,500 single / $25,000 joint) means your overall state tax bill is lower before the mileage deduction even applies. Both reduce your taxable income.

Does Louisiana require mileage reimbursement?

No. Louisiana has no state law requiring private employers to reimburse mileage.

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