Louisiana retirement taxes at a glance (2026)
| State income tax | Flat 3%Louisiana has a flat 3% income tax. |
|---|---|
| Social Security | Not taxedLouisiana does not tax Social Security. |
| Pensions | Partly taxedResidents 65+ can exclude up to $12,000 a year of private pension, annuity and retirement account income. Exclusion: up to $12,000 (age 65+). |
| 401(k) and IRA withdrawals | Partly taxedIRA, 401(k) and 403(b) withdrawals qualify for the $12,000 annual exclusion for residents 65+. |
| Government pensions | Not taxedFederal retirement, railroad retirement and most Louisiana state and local government pensions are exempt. |
| Military retirement pay | Not taxedMilitary retirement pay is exempt. |
| Estate tax | No |
| Inheritance tax | No |
| Property tax help for seniors | The homestead exemption removes the first $7,500 of assessed value. Residents 65+ or disabled with household income up to about $100,000 can freeze their assessed value. |
| Sales tax | State sales tax is 5%; the average combined rate of 10.11% is the highest in the US. |
Recent changes and good to know
- Louisiana moved to a flat 3% income tax starting in tax year 2025 under its 2024 tax reform.
- The 2025 state return deadline was May 15, 2026.
How to lower your retirement taxes in Louisiana
- Mix your income sources. Roth IRA withdrawals are tax-free at the federal level and generally in Louisiana too, so a Roth conversion before retirement can cut state tax later. Try the Roth conversion calculator.
- Watch federal Medicare costs. Large IRA withdrawals can raise your Medicare premiums. Check the 2026 IRMAA brackets.
- Think about your heirs. See what your IRA will really cost your family with the Family Tax Rate calculator.
- Comparing states? These have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Frequently asked questions
Does Louisiana tax retirement income?
Partly: Louisiana exempts Social Security and public pensions, and residents 65+ can exclude $12,000 a year of private retirement income.
Does Louisiana tax Social Security?
Louisiana does not tax Social Security.
Does Louisiana tax pensions?
Residents 65+ can exclude up to $12,000 a year of private pension, annuity and retirement account income.
Does Louisiana tax 401(k) and IRA withdrawals?
IRA, 401(k) and 403(b) withdrawals qualify for the $12,000 annual exclusion for residents 65+.
Does Louisiana tax military retirement pay?
Military retirement pay is exempt.
Sources (last verified 2026)
- Louisiana State Tax Guide — AARP (2026-04-09)
- State Individual Income Tax Rates and Brackets, 2026 — Tax Foundation (2026-02-17)
Educational content only, not tax, legal or investment advice. Plans and tax laws change; confirm details with your employer's plan documents or your state revenue department. Smart Financial Lifestyle is not affiliated with any employer named on this site.