Updated October 4, 2026. Quick answer: No, for most military retirees. Louisiana Department of Revenue guidance covers “Federal retirement benefits received by federal retirees, both military and nonmilitary” and says they “may be excluded from Louisiana taxable income”. R.S. 47:44.2 exempts federal retirement system income from the state income tax.
How Louisiana treats military retired pay
| Item | What the documents say |
|---|---|
| Treatment | Federal retirement benefits, military and nonmilitary, may be excluded from Louisiana taxable income |
| Statute | La. R.S. 47:44.2: income received under a retirement system for retirees of the United States Government is exempt from the state income tax |
| Age or cap | None printed for the federal retirement exclusion |
| Rate on other income | A flat 3% on all taxable income for tax years 2025 and after (Revenue Information Bulletin 25-012) |
| Gaps | The statute text does not use the words military retired pay, the military reference comes from the Department’s guidance, and the form line for the exclusion was not found in the documents read |
A $30,000 example
A retiree with $30,000 of military retired pay excludes all $30,000 under the federal retirement exclusion, so none of that pay is left to tax.
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What changes in 2026
No 2026 change to the military retirement treatment is printed in the documents read.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal side in Publication 3, Armed Forces’ Tax Guide.
Related: whether Louisiana taxes pensions, how Louisiana taxes retirement income, military retirement pay by state, and the military retirement calculator.
Sources
- Is there a list of retirement system benefits that may be excluded from Louisiana income tax?: https://revenue.la.gov/tax-education-and-faqs/faqs/individual-income-tax/is-there-a-list-of-retirement-system-benefits-that-may-be-excluded-from-louisiana-income-tax
- La. R.S. 47:44.2 Federal social security benefits; federal and railroad retirement income exempt from taxation: https://www.legis.la.gov/legis/Law.aspx?d=102134
- Revenue Information Bulletin No. 25-012, Louisiana Individual Income Tax Reform: https://dam.ldr.la.gov/lawspolicies/RIB-25-012-Louisiana-Individual-Income-Tax-Reform-1.pdf
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.