Does Louisiana tax Social Security benefits?

No. Louisiana fully exempts Social Security benefits from state income tax. Any amount that was taxable on your federal return is subtracted out before Louisiana calculates state tax, so your federal-taxable Social Security adds nothing to your Louisiana bill.

What is the $6,000 retirement income exclusion?

Taxpayers 65 and older can exclude up to $6,000 of otherwise-taxable retirement income — pensions, annuities, and IRA or 401(k) distributions — per person. Married couples filing jointly who are both 65+ can exclude up to $6,000 each, for $12,000 total.

Are government and military pensions taxed in Louisiana?

Most Louisiana state and local government pensions, plus federal and military retirement pay, are fully exempt from Louisiana income tax regardless of age. Tick the exempt-pension option for that income so it is excluded in full rather than capped at $6,000.

What income tax rate does Louisiana use?

Starting with 2025 income, Louisiana switched to a single flat individual rate of 3% on taxable income, replacing the older 1.85%/3.5%/4.25% brackets. This calculator applies the 3% flat rate to your remaining taxable retirement income.

Is this an exact tax figure?

No. It is an estimate of state tax on retirement income only and ignores the standard deduction, personal exemptions, other income, and credits. Use it to gauge the impact of Louisiana's exemptions, then confirm with Form IT-540 or a tax professional.

Louisiana Retirement Income Tax Calculator

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Louisiana is one of the friendlier states for retirees: Social Security is fully exempt, government and military pensions are exempt, and seniors get a further $6,000-per-person exclusion on other retirement income. This calculator applies those rules and the new flat 3% rate so you can see what is actually taxed.

How it works

Louisiana starts from federal-style income, then removes retirement income that the state exempts before applying its flat rate:

taxable retirement = pension + IRA/401(k) withdrawals
  − fully exempt government/military pension (if elected)
  − $6,000 per person aged 65+ exclusion (on remaining retirement income)
Social Security    = excluded in full (not taxed)
Louisiana tax      = max(0, taxable retirement) × 3%

The $6,000 exclusion is per taxpayer, so a married couple both 65+ can shield up to $12,000 of pension and retirement-account income. Exempt government and military pensions are removed in full first, and the $6,000 cap then applies only to what is left.

Example and notes

A single 67-year-old with $24,000 of Social Security, an $18,000 private pension, and $10,000 in 401(k) withdrawals excludes the Social Security entirely, then takes the $6,000 senior exclusion against the $28,000 of pension plus 401(k) income, leaving $22,000 taxed at 3% — about $660 of Louisiana tax. Remember this estimate covers retirement income only; the standard deduction, other income, and credits on Form IT-540 can change the final number.