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.
More on public pension systems, topic by topic: Louisiana Sheriffs Back-DROP.
More state retirement-income schedules, line by line: Louisiana retirement income exemption.
Inherited an IRA? What the state’s own documents say about taxing those withdrawals: Louisiana tax on inherited IRA withdrawals.
Hold a 403(b) or 457(b)? What the state’s own documents say about taxing those withdrawals: does Louisiana tax 403(b) and 457(b) withdrawals.
The school employees’ system (LSERS), with its options and refund rules from its own documents: Louisiana LSERS retirement decisions.
Three more Louisiana systems (the state employees’ system, the sheriffs’ fund and the parochial employees’ system), with options and refund rules from their own documents: Louisiana LASERS retirement decisions, Louisiana Sheriffs’ Pension retirement decisions and Louisiana Parochial Employees’ Retirement decisions.
Drawing a pension? Whether the state withholds tax from it, from its own documents: Louisiana tax withholding on pension payments.
The Firefighters’ Retirement System of Louisiana options, DROP and refund rules, from the Louisiana Revised Statutes: Louisiana Firefighters Retirement System decisions.
The Municipal Police Employees’ Retirement System of Louisiana options, DROP and refund rules, from the system’s own documents: Louisiana MPERS retirement decisions.
Selling your home? How the state taxes the profit, from its own tax documents: Does Louisiana tax the profit from selling your home?.
The state’s income tax schedule: the Louisiana tax brackets for 2026.
Withdrawing from an IRA or 401(k)? Whether the state withholds tax from it, from its own documents: Louisiana tax withholding on IRA and 401(k) withdrawals.
A pension earned in another state, or paid after a move, is covered here: does Louisiana tax out-of-state pensions.
Trusts have their own page: does Louisiana tax trust income.
Dividends and interest have their own page: does Louisiana tax dividends and interest.
Inheriting from, or planning for, someone in this state? Whether the state has an inheritance tax, from its own tax documents: Does Louisiana have an inheritance tax?.
Making a gift or planning an estate? The state’s gift tax answer, from its own tax documents: Does Louisiana have a gift tax?.
Annuity payments have their own page: does Louisiana tax annuity income.
Planning for what you leave behind? The state’s estate tax answer, from its own tax documents: Does Louisiana have an estate tax?.
Military retired pay has its own page: does Louisiana tax military retirement.
Saving for a child’s college? The state’s 529 break has its own page: Louisiana 529 plan tax deduction.
Selling stocks, funds or real estate has its own page: does Louisiana tax capital gains.
Withdrawals from a 401(k) or IRA have their own page: does Louisiana tax 401(k) and IRA withdrawals.
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 Department of Revenue’s proposed-rule notice gives $12,324 for tax year 2026 after inflation adjustment). |
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How our partner relationships workSocial 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.
Figures verified against La. R.S. 47:44.1, La. R.S. 47:44.2, the Louisiana Department of Revenue retirement benefits FAQ and its notice of intent for LAC 61:I.1311 on September 30, 2026; the R.S. 47:297.17 citation was not re-checked.
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.
For your own numbers, run the Retirement Tax Comparison Tool (2026): Compare Any Two States.
See Retirement Tax Relocation (2026): The Four Taxes That Change When You Move for the full state by state breakdown.