Retiring in Louisiana: how your income is taxed
Louisiana is fairly tax-friendly for retirees. On a typical retirement income it ranks #29 of 51 for the lowest state income tax.
The rules in Louisiana
- Social Security: Louisiana fully excludes Social Security benefits.
- Pensions: At 65 and older, each person can exclude up to $12,000 a year of private pension, annuity and IRA income combined, up from $6,000 before 2025 under the 2024 tax reform that also set a 3% flat rate. The amount is indexed to inflation after 2025, so the 2026 figure may be slightly higher. Federal pensions (including military) and Louisiana state, teacher and many local government pensions are fully exempt.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals share the same $12,000-per-person exclusion at 65 and older as private pensions. Under 65 they are fully taxed.
- At 65 and older: Louisiana dropped its extra $1,000 exemption at 65 in 2025; its break for older residents is the retirement income exemption.
Calculate your Louisiana retirement taxes
State income tax in Louisiana: $454 a year
In Louisiana, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Louisiana you'd pay about $454 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,210 (6.8% total).
Louisiana ranks #29 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Louisiana
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $454 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $2,254 | $1,508 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Louisiana's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to Louisiana in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Louisiana come from (IRS migration data, 2022–2023).
- Texas to Louisiana
- Mississippi to Louisiana
- Florida to Louisiana
- California to Louisiana
- Georgia to Louisiana
- Alabama to Louisiana
Frequently asked questions
Does Louisiana tax Social Security?
Not taxed. Louisiana fully excludes Social Security benefits.
Does Louisiana tax pensions?
Partly taxed. At 65 and older, each person can exclude up to $12,000 a year of private pension, annuity and IRA income combined, up from $6,000 before 2025 under the 2024 tax reform that also set a 3% flat rate. The amount is indexed to inflation after 2025, so the 2026 figure may be slightly higher. Federal pensions (including military) and Louisiana state, teacher and many local government pensions are fully exempt.
Does Louisiana tax 401(k) and IRA withdrawals?
Partly taxed. 401(k) and IRA withdrawals share the same $12,000-per-person exclusion at 65 and older as private pensions. Under 65 they are fully taxed.
Is Louisiana a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Louisiana charges about $454 in state income tax, ranking #29 of 51 (lowest tax first).
Related
Sources: dam.ldr.la.gov, revenue.louisiana.gov, dam.ldr.la.gov (2). Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.