How to File Exempt on Louisiana State Taxes

“Filing exempt” on Louisiana state taxes refers specifically to opting out of state income tax withholding from your paychecks. This means your employer will not deduct Louisiana state income tax from your wages. This exemption applies only to Louisiana state income tax withholding, not to other state taxes like sales tax, nor does it affect your federal income tax obligations. The purpose of claiming this exemption is to prevent over-withholding if you anticipate having no Louisiana income tax liability for the tax year.

Eligibility for Exemption

To qualify for an exemption from Louisiana state income tax withholding, you must meet specific criteria outlined by the state. The primary condition is that you incurred no Louisiana income tax liability for the previous tax year and anticipate having no Louisiana income tax liability for the current tax year. This determination considers your total income relative to applicable deductions and credits. For instance, if your gross income falls below the standard deduction amount for your filing status, you may have no tax liability.

As of 2025, Louisiana has significantly revised its tax structure, replacing personal and dependent exemptions with increased standard deductions. For the 2025 tax year, the standard deduction for single filers is $12,500, while for married filing jointly and head of household filers, it is $25,000. If your expected income for the year is less than these amounts, you might not incur a state income tax liability. Claiming this exemption falsely can lead to penalties and underpayment issues when you file your annual tax return.

Completing the Louisiana Employee Withholding Exemption Certificate

To claim an exemption from Louisiana state income tax withholding, complete the Louisiana Employee Withholding Exemption Certificate, known as Form L-4. This form is available from your employer’s human resources or payroll department, or you can download it directly from the Louisiana Department of Revenue website. The purpose of Form L-4 is to ensure your employer withholds the correct amount of state income tax.

To claim a full exemption, indicate this by checking a specific box or writing “EXEMPT” on the form. For the 2025 tax year, the revised Form L-4 focuses on standard deduction elections rather than personal or dependent exemptions. Select “0” in Block A to claim no standard deduction, indicating no withholding is desired. Provide your personal information, including your full name, social security number, and current address. Sign and date the form to certify that the information is accurate and you meet the exemption criteria.

Submitting Your Exemption Certificate

Submit the completed Louisiana Employee Withholding Exemption Certificate (Form L-4) to your employer’s payroll or human resources department. The Louisiana Department of Revenue does not process these forms directly. Your employer implements withholding changes based on the information you provide.

The exemption takes effect with the next payroll period after your employer processes the form. This exemption is not permanent. You must file a new Form L-4 each year if you wish to continue claiming the exemption. If your financial circumstances change during the year, such as a significant increase in income that might lead to a tax liability, you are required to file a new Form L-4 to adjust your withholding. Failure to update your withholding can result in underpayment of taxes and penalties.