Louisiana franchise tax filing information
Corporations and LLCs taxed as corporations owed Louisiana franchise tax for periods that began before 2026 if they exercised a charter, qualified to do business, or owned or used capital, plant, or property in Louisiana, regardless of profitability. Act No. 6 of the 2024 Third Extraordinary Session ends the tax for periods beginning on or after January 1, 2026. Governor Jeff Landry signed it on December 4, 2024, according to the legislature's bill history.
The repeal does not erase prior-period obligations. The Louisiana Department of Revenue states that corporations "may still have filing obligations for prior franchise tax periods."
The franchise tax was filed annually on Form CIFT-620, the Louisiana Corporation Income and Franchise Tax return, typically prepared by a tax accountant because of the detailed financial information required. Under LDR's electronic filing mandate, corporations with total assets of $250,000 or more had to file that return electronically for franchise tax periods beginning on or after January 1, 2020. The LDR forms library shows the handover in the form names: CIT-620 replaces CIFT-620 beginning with the 2025 tax year return, and the 2026 estimated tax voucher is CIT-620ES where the 2025 voucher was CIFT-620ES.
When was Louisiana franchise tax due?
Two returns applied to pre-2026 periods: an initial return for newly taxable entities and an annual return filed with the income tax form.
Initial return: Due on or before the 15th day of the fourth month after the month in which the tax accrues, under La. R.S. 47:611(A). LDR's initial return instructions set the accrual date rather than the statute: for a domestic entity, the date shown on the charter issued by the Louisiana Secretary of State; for a foreign entity, when it exercises its charter in Louisiana, is authorized to do or actually does business here, or uses any part of its capital or plant in the state. The LDR forms library lists a 2025 edition of Form R-6906A and no 2026 edition.
Annual return: The tax accrued on the first day of each calendar or fiscal year, and under La. R.S. 47:609(A) the return was due the fifteenth day of the fourth month after that month, so calendar-year filers filed by May 15. That date tracked the state filing calendar and was subject to annual change, so confirm it against the LDR instructions for the specific period you are filing. Baker Tilly notes that the CIFT-620 filed in 2025, labeled the 2024 Corporation Income Tax and 2025 Franchise Tax Return, was the last edition that computed franchise tax.
How to calculate Louisiana franchise tax
For a first-time filer in a pre-2026 period, the initial corporation franchise tax was $110 under La. R.S. 47:611(A); late filing or payment adds penalties and interest.
On later filings, the tax was based on the corporation's taxable capital, which the CIFT-620 instructions build from total capital stock, surplus, and undivided profits on Schedule G-1, apportion to Louisiana, and carry to Schedule L, where the tax itself is computed. For periods beginning on or after January 1, 2023, La. R.S. 47:601(D)(2) set tax owed at $2.75 for each $1,000, or major fraction thereof, of taxable capital above $300,000.
Penalties and interest on unpaid franchise tax
File a pre-2026 franchise tax period late and you still owe penalties under La. R.S. 47:1602, plus interest on the unpaid tax.
Delinquent filing: 5% of the tax due for the first 30 days and another 5% for each additional 30 days or fraction thereof under La. R.S. 47:1602(A)(1), capped with the other penalties in that Subsection at 25% under La. R.S. 47:1602(A)(5)
Delinquent payment: 5% of the unpaid tax for each 30 days or fraction thereof under La. R.S. 47:1602(A)(2), subject to the same 25% cap. The lower 0.5% per 30 days rate applies to individual income tax, not to corporation franchise tax
Interest: Revenue Information Bulletin No. 26-001 sets the 2026 interest rate at 10.50% for January 1 through December 31, 2026, down from 11.25% in 2025
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Although Discern doesn't file Louisiana franchise taxes, we automatically notify you when Louisiana filings are due and keep your Louisiana Secretary of State compliance current. You see every Louisiana entity's filing status and upcoming deadlines in one place, alongside franchise tax tracking across your entity portfolio.
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Frequently asked questions about Louisiana franchise tax
Common questions about the repeal, what still has to be filed, and what the repeal did not touch.
Is the Louisiana franchise tax fully repealed?
Yes, for periods beginning on or after January 1, 2026. Act No. 6 repealed La. R.S. 47:601 through 618, and the official code now carries only a repeal note for those sections. The Louisiana Illuminator reported in March 2026 that the tax raised an estimated $570 million in its final year, 2025.
Which entities owed Louisiana franchise tax?
Every domestic corporation, and every foreign corporation exercising its charter, qualified to do business, or actually doing business in Louisiana. La. R.S. 47:601(C)(1)(b) extended that to any other entity taxed as a corporation for federal income tax purposes, so an LLC that elected corporate treatment was inside the tax while an LLC treated as a partnership or a disregarded entity was not.
Do I still have to file for a period that began before 2026?
Yes, if that period was subject to the tax and the return was never filed. The repeal reaches forward only, which is why LDR still tells corporations they may have filing obligations for prior franchise tax periods. Those open periods keep accruing penalties and interest until they are resolved.
Does the repeal cancel penalties and interest already owed?
No. Act No. 6 removed the tax going forward; it did not forgive amounts already due. A delinquent pre-2026 filing still draws 5% per 30 days under La. R.S. 47:1602(A)(1) up to the 25% aggregate cap, and unpaid tax keeps accruing interest at the rate LDR sets annually, 10.50% for 2026.
Do S corporations still owe Louisiana franchise tax?
No. Act No. 6 repealed the tax for every corporation, S corporations included, for periods beginning on or after January 1, 2026, though an S corporation that never filed a pre-2026 period still carries that obligation. The temporary small business corporation suspension under R.S. 47:601.1 covered periods from July 1, 2020 through July 1, 2023 and does not change that. Separately on the income tax side, LDR's S corporation bulletin (Revenue Information Bulletin No. 25-032) treats S corporations as flow-through entities for tax years beginning on or after January 1, 2026, with Form CIT-620 filed as an informational return.
Did Louisiana repeal the corporation income tax too?
No. Act No. 6 reached only the franchise tax. LDR states that for taxable periods beginning on or after January 1, 2025, the corporation income tax rate is a flat 5.5%, with the graduated brackets repealed. That is why the return survives under a new name, CIT-620 rather than CIFT-620.
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