Updated October 4, 2026. Quick answer: Yes, at a flat 3%. The Department of Revenue says “the individual income tax rate is a flat 3%” for taxable periods beginning on or after January 1, 2025, and that “the net capital gains deduction has been repealed” for those periods, with one exception for sales contracted before 2025.
Selling your home? How the state taxes the profit, from its own tax documents: Does Louisiana tax the profit from selling your home?.
The same question for dividends and interest: does Louisiana tax dividends and interest.
How Louisiana treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | Taxed as income at the flat rate; the net capital gains deduction is repealed |
| Rate | 3% for taxable periods beginning on or after January 1, 2025 |
| Earlier rates | 2.00%, 4.00% and 6.00% (2009 to 2021); 1.85%, 3.50% and 4.25% (2022 to 2024) |
| Exception | The deduction is still allowed where the purchase agreement was signed and every condition to perfect the sale was met before January 1, 2025, even if closing comes later |
A $50,000 long-term gain
A $50,000 long-term gain is taxed at the flat 3%, computed as $50,000 x 3% = $1,500 of Louisiana tax on the gain.
What changes in 2026
The 2025 repeal of the capital gains deduction and the flat 3% rate are the current rules; the documents read print no further 2026 change.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether Louisiana taxes pensions, how Louisiana taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
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Answer againSources
- What are the individual income tax rates and brackets?: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/what-are-the-individual-income-tax-rates-and-brackets/
- Can I claim the net capital gains deduction for sales occurring on or after January 1, 2025?: https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/can-i-claim-the-net-capital-gains-deduction-for-sales-occurring-on-or-after-january-1-2025/
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.