How retirement income is taxed
in Louisiana
Louisiana applies a flat 3% income tax rate. Here's what that means for your retirement income and how to manage it.
Louisiana's retirement
tax landscape
Social Security is fully exempt. Government pensions are fully exempt. Private pensions get a $12,000/$24,000 exclusion age 65+. Retirement account withdrawals get a $12,000/$24,000 exclusion 65+.
Understanding how Louisiana treats each type of retirement income is essential for planning your withdrawals, conversions, and Social Security timing. The interaction between state and federal taxes determines your true after-tax income each year.
What's taxed
and what's not
Here's how Louisiana treats the major types of retirement income.
Fully exempt from state income tax.
Partially exempt with deductions or exclusions.
Partially exempt or exempt with age requirements.
Qualified distributions are fully exempt at both the state and federal level.
Louisiana's
tax rate
Louisiana has a flat income tax rate of 3%. All taxable income above the standard deduction is taxed at this single rate. The standard deduction is $12,500 for single filers and $25,000 for married filing jointly.
A flat rate simplifies planning — there are no brackets to manage. Every additional dollar of retirement income is taxed at 3% regardless of how much you withdraw. The planning focus shifts to maximizing deductions and exemptions rather than staying within bracket thresholds.
All taxable income above the standard deduction is taxed at this rate. No brackets to manage.
$12,500 single / $25,000 married filing jointly. Income below this threshold is tax-free.
Strategies to reduce your
Louisiana tax burden
The $12,000/$24,000 retirement exclusion for 65+ provides meaningful relief. Roth conversions before 65 avoid state tax entirely. The generous standard deduction ($12,500/$25,000) shelters significant income. The SS exemption is a strong advantage for retirees. Federal tax planning — withdrawal sequencing and SS timing — drives the primary savings opportunity.
Roth conversions before retirement. Converting traditional IRA balances to Roth during lower-income years means paying Louisiana tax now at lower rates, then taking tax-free Roth withdrawals later. See the full Roth conversion strategy guide.
Withdrawal sequencing. The order you draw from different accounts each year matters. Drawing from taxable brokerage accounts before tapping tax-deferred accounts can keep your Louisiana ordinary income lower. Read more in which accounts to withdraw from first.
Social Security timing. Optimizing when you claim Social Security affects both your federal and state tax picture. See when to start Social Security.
Model your Louisiana
retirement taxes
The interaction between Louisiana's tax rules and federal taxes is too complex to estimate by hand. A year-by-year projection shows your actual tax burden for every year of retirement.
Drawdown Arc's projection engine includes Louisiana's flat rate, standard deduction, and retirement income exemptions. Set your state to Louisiana and enter your account balances, pension, and Social Security timing — the projection shows your Louisiana state tax alongside federal tax for every year.
State tax modeling is a Pro feature. The free calculator shows your full federal tax projection — upgrade to Pro to add Louisiana (or any of the 50 states) to your model.
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