How are long-term capital gains taxed federally?

Long-term gains (assets held more than one year) are taxed at preferential federal rates of 0%, 15%, or 20% depending on your total taxable income. The rate that applies stacks on top of your ordinary income, so higher earners pay 15% or 20%.

How are short-term capital gains taxed?

Short-term gains (assets held one year or less) get no preferential rate. They are taxed as ordinary income at your marginal federal rate. This tool estimates that by applying the federal ordinary brackets to the gain on top of your other income.

Does Louisiana tax capital gains?

Yes. Louisiana taxes both short-term and long-term capital gains as ordinary income using its 2024 graduated brackets (1.85%, 3.5%, 4.25%). It does not offer a separate preferential rate for long-term gains the way the federal system does.

Is there a Louisiana capital gains exclusion?

Louisiana offers a limited exclusion for gains on the sale of certain non-publicly-traded Louisiana businesses or interests held for a qualifying period. It does not apply to ordinary stock or fund sales, so most investors pay full state tax on their gains.

Does this include the net investment income tax?

This tool estimates federal capital gains tax and Louisiana state tax. It does not add the 3.8% federal net investment income tax (NIIT) that can apply to high earners. Add NIIT separately if your modified AGI exceeds the threshold.

Louisiana Capital Gains Tax Calculator

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Selling an investment at a profit triggers tax at two levels in Louisiana: federal capital gains tax and Louisiana state income tax. The federal rate depends on how long you held the asset and your income, while Louisiana taxes the gain as ordinary income. This calculator estimates both.

How it works

Long-term gains (held more than a year) use preferential federal brackets that stack on top of your ordinary taxable income. For 2024 single filers the 0% rate applies until taxable income reaches about $47,025, 15% applies up to about $518,900, and 20% applies above that:

federal LT tax = gain taxed at 0% / 15% / 20% based on where it stacks
federal ST tax = gain taxed at your ordinary marginal rate

Louisiana adds state tax on the full gain using its 2024 graduated brackets (1.85% / 3.5% / 4.25%), with no separate long-term preference:

Louisiana tax = brackets applied to the gain on top of other income

The total is the federal plus Louisiana tax, and your after-tax proceeds are the gain minus that total.

Example

A single filer with $80,000 of ordinary taxable income and a $20,000 long-term gain: the gain stacks above $80,000, landing in the 15% federal bracket, so federal tax is $3,000. Louisiana taxes the gain near its 3.5%–4.25% bands for roughly $800. The combined tax is about $3,800, leaving $16,200 after tax.

Notes

This tool models 2024 figures and does not add the 3.8% net investment income tax (NIIT) or state add-backs. Louisiana moves to a flat 3% income tax for 2025, which will change the state portion. Capital losses can offset gains and up to $3,000 of ordinary income per year — net your gains and losses before entering an amount. Confirm with IRS Schedule D and Louisiana Form IT-540.