Louisiana Retirement Income Tax 2025
See how Louisiana treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.
Social Security
Social Security benefits taxed on the federal return are exempt from Louisiana tax.
Pension and IRA income
Each person 65 or older may exempt up to $12,000 of their own pension, annuity and IRA income for 2025 ($12,324 for 2026).
Estimated 2025 state tax
Resident return; local taxes and unmodeled credits excluded.
Modeled state taxable income
Retirement-income subtraction
Social Security benefits taxed on the federal return are exempt from Louisiana tax.
Each person 65 or older may exempt up to $12,000 of their own pension, annuity and IRA income for 2025 ($12,324 for 2026).
Scope: Louisiana state employee, teacher, federal and other statutorily exempt government retirement benefits (Schedule E codes 02E-05E) are excluded in full and do not use this exemption; they are not modeled, so enter private pension and IRA income only. The permanent-disability exemption (La. R.S. 47:44.1(B)) and the deduction for excess federal itemized deductions are not modeled. On a joint return, enter your spouse’s age to apply the exemption to each 65+ spouse’s own income, based on the spouse shares you enter; without it, a 65+ primary filer’s exemption covers the income entered up to one cap.
Louisiana worked example
For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:
Retirement subtraction
$27,000
Modeled state taxable income
$53,000
Estimated 2025 state tax
$1,215
This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.
What this model does not include
Louisiana state employee, teacher, federal and other statutorily exempt government retirement benefits (Schedule E codes 02E-05E) are excluded in full and do not use this exemption; they are not modeled, so enter private pension and IRA income only. The permanent-disability exemption (La. R.S. 47:44.1(B)) and the deduction for excess federal itemized deductions are not modeled. On a joint return, enter your spouse’s age to apply the exemption to each 65+ spouse’s own income, based on the spouse shares you enter; without it, a 65+ primary filer’s exemption covers the income entered up to one cap. Review the official instructions before filing.
Review the full Louisiana income tax guide →Louisiana retirement income tax FAQs
Does Louisiana tax Social Security benefits in 2025?
Social Security benefits taxed on the federal return are exempt from Louisiana tax.
Does Louisiana tax pensions and IRA withdrawals?
Each person 65 or older may exempt up to $12,000 of their own pension, annuity and IRA income for 2025 ($12,324 for 2026).
What does the Louisiana retirement tax example include?
The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.
Is this a complete Louisiana resident return?
No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. Louisiana state employee, teacher, federal and other statutorily exempt government retirement benefits (Schedule E codes 02E-05E) are excluded in full and do not use this exemption; they are not modeled, so enter private pension and IRA income only. The permanent-disability exemption (La. R.S. 47:44.1(B)) and the deduction for excess federal itemized deductions are not modeled. On a joint return, enter your spouse’s age to apply the exemption to each 65+ spouse’s own income, based on the spouse shares you enter; without it, a 65+ primary filer’s exemption covers the income entered up to one cap.
Sources
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