Updated September 4, 2026. Quick answer: It depends on the source. Louisiana fully exempts public pensions and non-military federal government pensions with no cap, and separately fully exempts military retirement pay. Private pensions and IRA/401(k) distributions are taxable, but get an age-65+ exclusion of up to $12,000 per person.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Louisiana taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Fully exempt, no cap, for Louisiana state and local retirement systems (for example LASERS and TRSL). |
|---|---|
| Private (employer) pensions | Fully taxable under age 65; partially exempt at 65 or older, up to $12,000 per person per year (2025 figure, raised from $6,000). |
| Federal government pensions (FERS/CSRS) | Fully exempt, no cap, under an independent statute covering federal government and Railroad Retirement Act benefits; not framed as a Davis v. Michigan parity provision, since it predates that case. |
| Military retirement pay | Fully exempt, no cap, under the same federal-benefits statute as non-military federal pensions. |
| IRA and 401(k)/403(b) distributions | Taxable in principle, subject to the same age-65+ exclusion of up to $12,000 per person as private pensions. |
| General retirement-income exclusion | $12,000 per person age 65 or older (2025 figure, raised from $6,000 by the late-2024 flat-tax reform), effective for tax periods beginning January 1, 2025, with cost-of-living indexing starting 2026 (the exact 2026 figure was not yet published as of this session). |
Coordinate this with your overall retirement plan
An adviser can help weigh how much of a pension or IRA withdrawal to take this year, whether a Roth conversion makes sense before or after a move, and how state tax interacts with the rest of your plan, but that does not replace the numbers in your own return.
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Social Security
Social Security is never taxed by Louisiana, exempted under the same federal-benefits statute as federal pensions. Social Security has its own rules in every state; see the full breakdown in how Louisiana taxes retirement income generally.
Statute and sources
Governing citation: La. R.S. 47:44.1 (age-65 exclusion), La. R.S. 47:44.2 (federal and military pensions), La. R.S. 47:297.17 (military survivor benefits).
Read September 4, 2026.
Related: how Louisiana taxes retirement income generally · does Louisiana tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.