Louisiana state income tax
Louisiana has a state income tax. It is flat, with a top marginal rate of 3%. Single flat rate of 3% effective January 1, 2025, replacing previous graduated brackets (1.85%-4.25% by income level). Applies uniformly across all filing statuses. Standard deduction nearly tripled to $12,500 (single/MFS) as part of the same reform (Act 11, 2024 Third Extraordinary Session). Capital gains are taxed as ordinary income (no special lower rate).
Does Louisiana have a state income tax?
Yes. Louisiana taxes individual income on a flat schedule topping out at 3%. Single flat rate of 3% effective January 1, 2025, replacing previous graduated brackets (1.85%-4.25% by income level). Applies uniformly across all filing statuses. Standard deduction nearly tripled to $12,500 (single/MFS) as part of the same reform (Act 11, 2024 Third Extraordinary Session).
| Item | Louisiana |
|---|---|
| State income tax | Yes, flat |
| Top marginal rate | 3% |
| Capital gains | Taxed as ordinary income, up to 3% |
| State sales tax | 5% (plus local) |
| Avg. property tax rate | 0.55% of home value |
| Estate / inheritance tax | None |
How does Louisiana tax capital gains?
Louisiana has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 3%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Louisiana?
Retirement income is taxed differently from wages in many states. For how Louisiana treats Social Security, pensions, and 401(k)/IRA withdrawals, see Louisiana retirement taxes.
Sources
- Louisiana income tax rates and brackets: Louisiana Department of Revenue / Taxation.
- Louisiana capital gains treatment: Louisiana tax authority.
- Louisiana sales tax: Louisiana Department of Revenue.