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Louisiana State Taxes: What You’ll Owe in the 2026 Tax Season

Stacey Shepard,

AARP

Published April 09, 2026

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As of the 2025 tax year, Louisiana has a 3 percent flat state income tax, among the lowest in the country, according to the Tax Foundation. The state does not tax Social Security benefits, and it does not have an estate or inheritance tax. However, Louisiana has the highest average combined state and local sales tax rate in the nation at 10.11 percent, Tax Foundation data shows.

The big picture:

Income tax: The individual income tax rate is a flat 3 percent.
Property tax: An average of 0.55 percent of a home’s assessed value, although property taxes are levied locally and vary by county, according to the Tax Foundation.
Sales tax: Louisiana has a 5 percent state sales tax rate and an average combined state and local sales tax rate of 10.11 percent — the highest in the country, according to the Tax Foundation.

How is income taxed in Louisiana?

As of the 2025 tax year, Louisiana is among 15 states with a flat state income tax. That means residents pay the same individual state income tax rate of 3 percent regardless of income level.

Are pensions or other retirement income taxed?

In Louisiana, many types of retirement income are fully exempt from state income tax. Benefits from Social Security, federal retirement systems, railroad retirement systems, military retirement and most Louisiana state and local government pensions are not taxed. Learn more here.

For other forms of retirement income — such as private pensions, annuities and distributions from 401(k)s, 403(b)s and IRAs — Louisiana allows an annual retirement income exemption for residents who are 65 or older. Eligible taxpayers may exclude up to $12,000 of retirement income from their taxable income.

What about investment income?

Investment income — including interest, dividends and capital gains — is taxed the same as other income in Louisiana and is subject to the state’s flat 3 percent income tax rate. However, interest earned on state, local and federal obligations, such as Treasury bills or U.S. savings bonds, is exempt from state income tax.

Does Louisiana tax Social Security benefits?

No, the state does not tax Social Security benefits.

How is property taxed?

Louisiana’s average effective property tax rate is 0.55 percent of a home’s assessed value, according to the Tax Foundation. Property taxes are based on a home’s assessed value and the millage rates, which vary by location. Local property tax rates ranged from a low of 0.13 percent in St. Helena and West Carroll parishes to a high of 0.85 percent in Orleans Parish. The lowest median property tax amount paid was $221 in Tensas Parish, and the highest was $2,606 in Orleans Parish.

Residential property is assessed at 10 percent of its fair market value, and most homeowners qualify for a homestead exemption. That removes the first $7,500 of assessed value (equivalent to the first $75,000 of a home’s market value) from taxes. Local taxing districts — including parishes, municipalities, school boards and fire departments — then apply their own millage rates, which function like local property tax rates. Louisiana has no statewide property tax.

What about sales tax and other taxes?

Sales tax: The statewide sales tax rate in Louisiana is 5 percent. Local parishes, municipalities and other taxing jurisdictions may add their own sales taxes, so the combined state and local rate often ends up significantly higher. The average local sales tax rate is 5 percent, making the combined state and local sales tax rate 10.11 percent — the highest in the nation, according to the Tax Foundation.
Gas tax: There is a 20-cent-per-gallon tax levied on gas and diesel fuel.
Alcohol: State and local sales tax rates apply to alcohol purchases. Additional excise taxes are also charged based on the type and percentage of the alcohol.
Lottery winnings: The state treats lottery winnings as regular taxable income subject to the flat 3 percent rate.

Will my estate or heirs have to pay inheritance or estate tax?

No, the state has no inheritance or estate taxes.

Are there any tax breaks for older residents, those with disabilities or veterans?

Yes, Louisiana provides several tax breaks and exemptions that benefit these groups.

Special assessment level freeze: Homeowners age 65 or older or who have a permanent disability and a household income of $100,000 or less may qualify to have their property’s assessed value frozen. Because local property tax exemptions vary by parish and sometimes by income level or veteran status, residents should check with their parish assessor’s office for exact rules and eligibility. Learn more here.
Veterans property tax exemption: Veterans with a service-connected disability rating of 50 percent or higher may receive an additional property tax exemption, in addition to the homestead exemption, on their primary residence. Learn more here.

Is military retirement income taxed?

No, Louisiana does not tax military retirement income. Additionally, for active-duty service members stationed outside of Louisiana for 120 or more consecutive days, up to $50,000 in military pay may be exempt from taxes.

What is the deadline for filing Louisiana taxes?

State income tax returns for residents and part-year residents are due on May 15, 2026. The state provides an automatic six-month extension to file, moving the deadline to Nov. 15, but any taxes owed must still be paid by May 15 to avoid interest and penalties. The deadline for filing federal income tax returns is April 15, 2026.

More AARP Financial Resources

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