How Louisiana taxes retirement income
Louisiana does not tax Social Security benefits. Pensions and 401(k)/IRA withdrawals are partly taxed (there is an exclusion, then the rest is taxed). Social Security benefits excluded from Louisiana state taxation. Federal government retirement benefits (R.S. 47:44.2) and public state retirement system benefits, including Louisiana's LASERS and TRSL (R.S. 47:44.3), are fully exempt. All taxpayers age 65+ can exclude up to $12,000 of other annual retirement/annuity income (R.S. 47:44.1); a separate $6,000 disability-income exclusion also exists. 401(k) and IRA withdrawals are ordinary income (subject to the 3% flat rate) but qualify for the age-65+ $12,000 exclusion once that cap is reached.
Retirement income tax in Louisiana, at a glance
| Income type | Taxed by Louisiana? |
|---|---|
| Social Security | No |
| Pensions | Partially (exclusion applies) |
| 401(k) / IRA withdrawals | Yes |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.55% of home value |
Does Louisiana tax Social Security benefits?
No. Louisiana does not tax Social Security benefits.
Does Louisiana tax pensions and 401(k) or IRA withdrawals?
Partly. Social Security benefits excluded from Louisiana state taxation. Federal government retirement benefits (R.S. 47:44.2) and public state retirement system benefits, including Louisiana's LASERS and TRSL (R.S. 47:44.3), are fully exempt. All taxpayers age 65+ can exclude up to $12,000 of other annual retirement/annuity income (R.S. 47:44.1); a separate $6,000 disability-income exclusion also exists. 401(k) and IRA withdrawals are ordinary income (subject to the 3% flat rate) but qualify for the age-65+ $12,000 exclusion once that cap is reached.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Louisiana taxation of retirement income (Social Security, pensions, 401(k)/IRA): Louisiana Department of Revenue / Taxation.