2021 la income tax brackets4/17/2024 ![]() What other tax policy bills were on the ballot? See also: Tax policy changes in Louisiana, 2021 Proposed rates under Amendment 2/House Bill 278 In general, filers that itemize on their federal returns will face a tax increase, while filers who do not itemize will face a tax decrease." Tax rates before amendment vs. The fiscal impact note for the bill said, "The bill is estimated to result in an aggregate annual tax table liability increase of $6.9 million. It was also designed to provide for an income tax rate reduction trigger on the first of April from 2024 through 2034, which was set to reduce the individual income tax rates the following January if the state meets revenue growth goals and if the Budget Stabilization Fund's balance is at least 2.5% of the state's total revenue from the previous fiscal year. It was designed to reduce individual income tax rates from 2%, 4%, and 6% to 1.85%, 3.50, and 4.25%. HB 278 was designed to remove the ability to deduct federal income taxes paid from the state income taxes owed. HB 278 was designed to provide in state law for changes to individual income taxes after the amendment was approved. The state legislature passed implementing legislation, House Bill 278, which the governor signed on June 16, 2021. The amendment allowed the legislature to provide in state law for deductions of federal income taxes paid. Going into the election, the state constitution required the state to deduct federal income taxes paid when computing state income taxes. The measure amended the constitution to provide that the maximum state individual income tax rate shall not exceed 4.75% for tax years beginning in 2022. Overview What did Amendment 2 do? See also: Measure design, Ballot language and constitutional changes 8.5 Referred amendments in Louisiana during odd years.8.3.2 Bills changing tax policy contingent on approval of Amendment 2. ![]() 8.3 Tax policy changes in Louisiana, 2021.8.2 Louisiana individual income tax revenue, 2011-2020.3.1 Implementing legislation: House Bill 278.2.3 How did the amendment get on the ballot?.2.2 What other tax policy bills were on the ballot?.Ī " yes" vote supported amending the state constitution to decrease the maximum allowable individual income tax rate from 6% to 4.75% for tax years beginning in 2022 and providing in state law through House Bill 278 that the tax bracket rates beginning in 2022 for an individual would be 1.75% on the first $12,500 of net income 3.50% on the next net income up to $50,000 and 4.25% on income above $50,000.Ī " no" vote opposed decreasing the maximum individual income tax rates for tax years beginning in 2022, thereby maintaining the maximum individual income tax rates for an individual of 2% on the first $12,500 of net income, 4% on the next net income up to $50,000, and 6% on income above $50,000. In the case of dividends and other corporate distributions from Mexican companies, since 2014, there is a 10% tax withholding on the dividends from corporate profits generated after 2013.Louisiana Amendment 2, the Reduction of the Maximum Individual Income Tax Rate Measure, was on the ballot in Louisiana as a legislatively referred constitutional amendment on November 13, 2021. Other types of Mexican-source income (including rents and royalties) are also subject to WHTs when paid to a non-resident. Sales of shares in the Mexican stock exchange are subject to a flat 10% tax withholding on the profit from said transaction. Generally, when a capital gain is subject to tax, the non-resident investor can elect to pay either a flat rate of 25% of the gross proceeds or 35% of the net gain. Non-residents are subject to Mexican tax on gains arising from sales of real property located in Mexico (including shares of foreign companies holding a significant amount of Mexican real property) as well as the sale of shares of Mexican companies. Non-residents are subject to withholding taxes (WHTs) on Mexican-source interest income at rates varying from 0% to 35%, depending on several factors. The following tax table is applicable to income tax with respect to income earned by non-residents for the calendar year 2024: Taxable income (MXN) The first MXN 125,900 of employment income received in a 12-month floating period will be tax exempt. ![]() If the employee is considered a non-resident for Mexican tax purposes, the tax rate applicable to compensation will vary from 15% to 30%. The following tax rates are effective for resident individuals for calendar year 2024: Taxable income (MXN) Non-residents, including Mexican citizens who can prove residence for tax purposes in a foreign country, are taxed only on their Mexican-source income. ![]() Resident individuals are subject to Mexican income tax on their worldwide income, regardless of their nationality.
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