Louisiana businesses face a new compliance landscape beginning Jan. 1, 2026, as multiple tax and filing changes take effect, including the repeal of the state corporate franchise tax, the rollout of a combined state-and-parish sales and use tax return, and expanded electronic filing mandates.
The state’s corporation franchise tax is repealed for franchise tax periods beginning on or after Jan. 1, 2026, eliminating the levy on taxable capital. According to the Louisiana Department of Revenue, the repeal applies prospectively to periods that begin in 2026.
Sales tax administration is also shifting. Louisiana will implement a single combined state and parish sales and use tax return in early 2026, replacing separate state and local filings. According to EY Tax News, the combined return becomes effective Jan. 1, 2026, with advance registration required, while the Louisiana Department of Revenue’s Parish E-File site currently targets Feb. 1, 2026, for the first filing period.
Electronic filing and payment will become the default for most business tax obligations. According to the Louisiana Department of Revenue, the mandate applies to returns, forms, payments and fees submitted on or after Jan. 1, 2026, including withholding and most sales and use taxes, with penalties for noncompliance.
Marketplaces in the accommodations sector face new obligations. According to Act 82, beginning Jan. 1, 2026, accommodations intermediaries that remit sales and use taxes as marketplace facilitators must also remit applicable hotel and motel occupancy taxes to the Sales and Use Tax Commission under the same administrative framework.
Payroll tax parameters are also updated for 2026. According to the Louisiana Workforce Commission, the unemployment insurance taxable wage base remains $7,000 for the 2026 rate year, effective Jan. 1.
The Legislature has also tightened rules on future sales tax preferences. According to Act 215 (HB 654), any new sales and use tax exemptions, exclusions, credits or rebates enacted on or after Jan. 1, 2026, must apply uniformly to both the state and all local taxing authorities.
Businesses should review filing systems for the combined sales tax return, ensure LaTAP access and e-payment capability, update payroll settings for the 2026 unemployment insurance base, and assess whether marketplace obligations apply. Firms with legacy franchise tax processes can discontinue those filings for periods beginning in 2026 while retaining records for prior periods, tax advisors say. According to Deloitte and other professional summaries of the 2024–2025 reform package, the 2026 changes build on earlier moves to simplify income and franchise taxation.
Key dates and actions for Louisiana companies
Jan. 1, 2026: Franchise tax repeal begins for franchise tax periods starting this date. According to the Department of Revenue, taxpayers should update forecasting and provision models.
Early 2026: Combined state-and-parish sales and use tax return launches, with the Department of Revenue targeting Feb. 1 for first filings. According to EY, registration is required before first use.
Jan. 1, 2026: Electronic filing and payment required for most business tax returns and fees. According to the Department of Revenue, penalties apply for noncompliance.
Jan. 1, 2026: Accommodations marketplaces begin remitting hotel occupancy taxes through the Sales and Use Tax Commission. According to Act 82, the remit requirement mirrors sales and use processes.
Jan. 1, 2026: Unemployment insurance taxable wage base remains $7,000. According to the Workforce Commission, the 2026 rate table and employer guide reflect this base.
Taken together, the changes are designed to streamline compliance and reduce capital-based taxation while centralizing sales tax administration. According to the Louisiana Department of Revenue and supporting professional guidance, the measures aim to lower administrative costs and enhance uniformity across jurisdictions.
—BIZ Magazine