By Misty Castile | The Center Square
(The Center Square) – Louisiana finished the first full fiscal year under its 2024 tax overhaul with major state revenues down $934 million from the previous year.
Higher sales tax collections failed to offset steep declines in individual and corporate income taxes, according to the Louisiana Department of Revenue’s June Net Receipts Report.
The state collected $11.2 billion in major revenues during fiscal year 2026, compared with $12.1 billion during fiscal year 2025, an 8% decline.
The 2024 overhaul lowered individual and corporate income tax rates while increasing the state sales tax rate to 5%, shifting a larger share of state revenue toward consumer purchases. The June report provides the first full fiscal-year snapshot of that change.
General sales tax collections increased to $5.2 billion, up about 15% from fiscal year 2025. At the same time, individual income tax collections fell to $3.8 billion, down 19%, while corporate income and franchise tax collections dropped to $725 million, a 49% decline from the previous fiscal year.
June’s monthly collections were stronger than May’s, but the improvement did little to change the broader fiscal picture.
The state collected $1,131,947,860 in net receipts in June, up $38,525,654 from $1,093,422,206 in May, an increase of about 3.5%. Higher individual and corporate income tax collections more than offset weaker sales tax receipts.
Individual income taxes increased from $361,039,123 in May to $438,619,172 in June, a gain of nearly $77.6 million, while corporate income and franchise taxes rose from $97,534,894 to $117,860,815, an increase of about $20.3 million.
General sales tax collections, however, declined from $487,293,588 in May to $430,217,434 in June, a decrease of about $57.1 million. Gasoline and special fuels collections slipped from $52,384,845 to $50,192,959, while severance tax collections increased from $40,027,645 to $41,934,933.
Despite the year-over-year decline in total revenues, most major tax categories met or exceeded the Revenue Estimating Conference’s fiscal year forecasts, which were adopted after lawmakers approved the tax overhaul. General sales taxes finished at 100% of forecast, individual income taxes at 103%, gasoline and special fuels taxes at 101%, and severance taxes at 108%. Corporate income and franchise taxes were the lone major category below forecast, finishing at 97%.
The report illustrates how Louisiana’s revenue mix has shifted following the tax changes. Although June’s increase was driven largely by stronger income tax collections, sales taxes remained the state’s largest revenue source throughout the fiscal year and finished well above prior-year levels, while income tax collections remained substantially lower than a year earlier.