Louisiana Digital Nomad Exemption: Remote Worker State Tax Break Explained
- Kaila Bratcher
- Sep 25
- 3 min read
New Orleans is famous for turning visitors into locals, and remote work has only fueled that trend. Today, NOLA’s cafés, coworking hubs, and local businesses cater to digital nomads who want to work where the culture never sleeps. Louisiana made headlines in 2021 with a law designed to attract digital nomads. These are remote workers who can live anywhere but choose to spend their money right here in our communities. The law created the Louisiana Digital Nomad Exemption, which allows qualifying individuals to exclude up to 50% of their wages (up to $150,000) from Louisiana income tax for as long as two years.
What is the Louisiana Digital Nomad Exemption?
The exemption was established through the original legislation. It provides a direct benefit to employees, unlike most state-level tax credits that go to employers.
To administer the law, the Louisiana Department of Revenue issued official guidance, which explains the requirements and the cap on participation.
Who qualifies for Louisiana’s digital nomad tax break?
You must be a new Louisiana resident (not a resident in the three years before applying).
You must work remotely for an employer outside of Louisiana.
The exemption applies to tax years 2022 through 2025.
There is a lifetime cap of 500 taxpayers total who can claim it.
Why the exemption matters for remote workers
Louisiana is one of the few states that created a tax break specifically for digital nomads. By excluding up to half of eligible wages from income tax, the state hoped to attract high-earning remote professionals and keep their spending in Louisiana.
For comparison, many states either have no special rules or only offer incentives to businesses. This exemption was different: it targeted individuals directly.
Why so few people have claimed the exemption
Here’s the surprising part: uptake has been very low. According to a legislative fiscal note, only about $12,000 in exemptions were claimed in FY 2024. That suggests only a handful of taxpayers have ever used it, far below the 500-person cap.
Why?
Lack of awareness: Few taxpayers and even fewer tax preparers knew the exemption existed.
Strict rules: You had to be brand-new to Louisiana, and your employer had to be fully out of state.
Timing: The exemption took effect during major shifts in remote work, with limited publicity.
Will Louisiana extend the digital nomad tax credit?
In 2025, lawmakers introduced a bill to extend the exemption through 2027 and to broaden eligibility. It passed the Senate but failed in the House.
That means the exemption is currently set to expire after 2025 unless future legislation revives it. Advocates (me) are already asking for changes such as retroactive claims for 2022–2025, removing the 500-person cap, and extending the window beyond 2027.
How to claim the exemption (and what to watch for next)
If you think you might qualify, review the Louisiana Department of Revenue’s official guidance. Claiming the exemption is not automatic. You must apply and be approved before you can take the credit on your tax return. Once your application is accepted, you’ll receive documentation that allows you to file with the exemption.
You can also check out my earlier blog post on how remote workers should handle self-employment taxes, which explains how state and federal rules fit together.
FAQ
Does Louisiana have a digital nomad visa?
No. Some countries offer “digital nomad visas,” but Louisiana’s program is a state income tax exemption, not an immigration status.
How long does the Louisiana Digital Nomad Exemption last?
Currently, it covers tax years 2022 through 2025. Efforts to extend it through 2027 failed in 2025.
Can I still claim it for past years?
Yes, if you qualified and filed the application on time. Advocates are pushing for a law change that would allow retroactive claims through amended returns, but that has not passed yet.
Do I qualify if my employer has a Louisiana office?"
The law requires your wages to come from an employer outside Louisiana. Some proposed changes would allow employees of Louisiana companies with only limited in-state operations, but those are not law yet.
Bottom Line
The Louisiana Digital Nomad Exemption is one of the only programs in the country that gives remote workers a direct state income tax break. Unfortunately, very few people have been able to use it so far.
If you’re curious whether you qualify or want help planning for future changes, contact Bratcher Tax Service. I don’t just prepare taxes — I also keep an eye on new credits and exemptions that could save you money.
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