State retirement taxes · 2026
Does Louisiana tax retirement income?
Short answer: Partly. Louisiana does not tax Social Security benefits. Government pensions are fully exempt, and at 65+ another $12,000 per person of private pension or IRA income is excluded.
What’s taxed in Louisiana
2026 rules.
- Social SecurityNot taxed
- Louisiana does not tax Social Security benefits.
- PensionsPartly taxed
- Government pensions (federal, military, Louisiana systems) are exempt; at 65+, up to $12,000 per person of other retirement income is excluded.
- IRA & 401(k) withdrawalsPartly taxed
- IRA and 401(k) withdrawals are taxable, except up to $12,000 per person 65 or older.
- Military retirement payNot taxed
- Military retirement pay is fully exempt as federal retirement, and Survivor Benefit Plan payments are exempt too.
- Income tax rate3% flat
- A flat 3% since 2025; the old graduated brackets were repealed.
Does Louisiana tax Social Security?
Louisiana does not tax Social Security benefits.
Social Security benefits taxed on your federal return are exempt from Louisiana tax, with no age or income limit.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Louisiana?
Government pensions (federal, military, Louisiana systems) are exempt; at 65+, up to $12,000 per person of other retirement income is excluded.
Fully exempt: the Louisiana State Employees’ and Teachers’ retirement systems, federal retirement (military and civilian) and other systems listed in law (school employees, State Police, municipal, police, fire and others). Other retirement income — private pensions, annuities and IRAs — qualifies for an annual exclusion of up to $12,000 per taxpayer 65 or older; each spouse 65+ with their own retirement income can exclude $12,000. Under 65, private pensions and IRAs are taxable.
Public vs. private pensions: Public pensions fully exempt; private pensions get the $12,000 exclusion at 65+.
Are IRA and 401(k) withdrawals taxed in Louisiana?
IRA and 401(k) withdrawals are taxable, except up to $12,000 per person 65 or older.
The 65+ exclusion has been $12,000 since tax year 2025 (it was $6,000 through 2024). Distributions before 65 are taxed at 3%.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Louisiana?
Military retirement pay is fully exempt as federal retirement, and Survivor Benefit Plan payments are exempt too.
What is Louisiana’s income tax rate?
A flat 3%.
A flat 3% since 2025; the old graduated brackets were repealed.
Standard deduction and exemptions
Standard deduction for 2025: $12,500 single or married filing separately; $25,000 joint, head of household or surviving spouse (it absorbs the old personal exemption). It is indexed: Louisiana’s 2026 withholding tables use $12,875 / $25,750, but the Department says the amounts on 2026 returns may differ slightly.
What tax breaks do seniors get in Louisiana?
The $12,000 retirement exclusion at 65+. One Department page still describes a doubled $25,000 senior standard deduction, but that depended on Amendment 2 of March 29, 2025, which news reports say failed — the official 2025 return has no senior add-on.
What changed for 2026?
Act 11 (2024 Third Extraordinary Session) set the flat 3% rate, the indexed $12,500 standard deduction and the $12,000 senior retirement exclusion from 2025. HB 667 (2025), which would have cut the rate to 2.75% from 2027, was not enacted.
The flat rate is official; the 2026 standard deduction is provisional; exclusions come from the 2025 IT-540 instructions.
What we couldn’t confirm
- We could not retrieve the Secretary of State’s certified result for Amendment 2 (March 2025); the official 2025 return does not apply a senior standard deduction, and neither do we.
- We could not confirm that no rate change passed in Louisiana’s 2026 session.
How Louisiana compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- LouisianaThis pageFriendlySocial Security Not taxedTop rate: 3% flat
- ArkansasFriendlySocial Security Not taxedTop rate: 3.7% top
- MississippiVery friendlySocial Security Not taxedTop rate: 4% flat
- TexasTax-free retirement incomeSocial Security Not taxedTop rate: None
State tax is half the picture — check the federal side
Louisiana retirement tax questions
Is Louisiana tax-friendly for retirees?
We rate Louisiana “Friendly” for 2026. Louisiana does not tax Social Security benefits. Government pensions are fully exempt, and at 65+ another $12,000 per person of private pension or IRA income is excluded. The top income tax rate is 3%.
Are required minimum distributions (RMDs) taxed in Louisiana?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Louisiana’s rules for those accounts. IRA and 401(k) withdrawals are taxable, except up to $12,000 per person 65 or older.
Is military retirement pay taxed in Louisiana?
No. Military retirement pay is fully exempt as federal retirement, and Survivor Benefit Plan payments are exempt too.
What is Louisiana’s income tax rate for 2026?
A flat 3% since 2025; the old graduated brackets were repealed.
Sources for Louisiana
Primary sources only. We re-check them whenever an agency publishes new figures.
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