Jeff Landry by Gage Skidmore is licensed under CC BY-SA 2.0
Today, Louisiana Governor Jeff Landry once again stated his goal of eliminating the state’s income tax.
“I’m standing here to reiterate that my long-term goal is to eliminate the income tax in this state, once and for all,” said Landry at his Thursday press conference on his fiscal responsibility program findings.
Since taking office, Governor Landry has been a consistent proponent of income tax elimination.
“Louisiana is in the race to become the next no-income-tax state. Eliminating the state’s income tax will allow Louisiana households to keep more of their own money while making the state more competitive with its neighbors,” said Grover Norquist, president of Americans for Tax Reform. “Americans for Tax Reform is proud to stand with Governor Landry and thanks him for his consistent efforts to save taxpayers money.”
Under the Governor’s leadership, Louisiana residents have already seen substantial tax savings. In 2024, he and the Republican-controlled legislature delivered the largest tax cut in state history, providing $1.3 billion in tax relief to Louisiana taxpayers.
That package centered around moving to a 3% flat individual income tax rate, replacing Louisiana’s previous three-bracket system, which imposed a top rate of 4.25%.
The reform package also overhauled Louisiana’s corporate income tax system, moving from a graduated structure with a top rate of 7% to a simplified flat rate of 5.5%. Prior to these reforms, Louisiana faced the highest corporate income tax in the South, hindering its economic competitiveness with neighboring states. By lowering and simplifying the tax system, the state has better positioned itself as a state that can compete for investment, job creation, and long-term economic growth.
The impact of these changes is visible in recent migration trends: according to U-Haul’s 2025 Growth Index, Louisiana climbed 13 places in the ranking of states attracting new residents, signaling a meaningful improvement in its ability to draw and retain people compared with the previous year.
Governor Landry is right to prioritize income tax reform. States without a state income tax are far more attractive to families, businesses, and entrepreneurs, creating an environment that supports job creation, higher wages, and expanded economic opportunity.
While Louisiana has made meaningful progress, the governor is also correct that more work remains if the state wants to stay economically competitive. Neighboring Mississippi has adopted revenue triggers designed to eventually eliminate its income tax, while Arkansas has enacted consistent tax cuts in recent years, with Governor Sarah Huckabee Sanders openly embracing income tax elimination as a long-term goal. Texas, meanwhile, continues to enjoy a competitive advantage with no state income tax and no corporate income tax.
If Louisiana is serious about achieving the kind of economic growth that has become increasingly common across the South, continued and comprehensive tax reform must remain a top priority. Lower, simpler taxes improve the state’s ability to attract new businesses, retain existing employers, and compete more effectively with neighboring states that have already embraced pro-growth tax policies. Over time, these reforms help drive job creation, wage growth, and broader economic opportunities across the state. And most importantly, these policies empower hardworking Louisianans to keep more of their own money.