BATON ROUGE, La. (AP) - Louisiana taxpayers can expect to see a bigger bite out of their paychecks for state taxes.
The state revenue department adjusted the amount of money employers withhold from paychecks for state taxes, in response to federal tax law changes approved by Congress and President Donald Trump.
The updated withholding tables took effect Friday.
Louisiana’s income tax laws are tied to federal income tax policy. The changes lowering federal income tax liabilities will boost state tax collections. Louisiana is estimated to receive an additional $226 million in personal income taxes annually because of the changes, money expected to lower a $1 billion budget gap.
The revenue department says the updated withholding tables are aimed at keeping workers from having a large state income tax bill at the end of the year.
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