2026 edition · statute-cited · part of Clear Money Guide’s 51-state retirement tax series. This guide covers state taxes on retirement income and estate transfers; property and sales taxes vary by county and are outside its scope.
Updated July 24, 2026. Quick answer: Louisiana rewrote its income tax and most retirement guides haven’t caught up: as of tax year 2025 the state levies a flat 3% (Act 11, 2024 Third Extraordinary Session) — the old 1.85%/3.5%/4.25% brackets are gone — and the 65+ exclusion for private retirement income doubled to $12,000 per person. Social Security and government pensions (federal, Louisiana state/local, Louisiana public systems) were already fully exempt. No estate tax; the inheritance tax has been dead since mid-2004.
The Act 11 corrections (flat 3%, $12,000 at 65+)
Two figures to fix in older coverage: the rate — a flat 3% from TY2025, replacing the three-bracket schedule still quoted across the web — and the age-65 exclusion for private pensions, 401(k)s and IRAs, which rose from $6,000 to $12,000 per person effective TY2025 (La. R.S. 47:44.1(A)). A 65+ couple can shelter $24,000 of private retirement income on top of fully exempt Social Security and any government pension — then pay just 3% on the rest, among the lowest rates of any income-taxing state.
How Louisiana taxes retirement income (statute-cited)
| Income tax | Flat 3% (Act 11, effective TY2025) |
| Social Security | Not taxed (fully exempt) |
| Government pensions | Fully exempt: federal, Louisiana state/local, Louisiana public retirement systems |
| Private pension / 401(k) / IRA | 65+: exclude up to $12,000/person (raised from $6,000, TY2025); flat 3% above |
| Military retirement | Fully exempt (incl. Survivor Benefit Plan income) |
| Estate / inheritance tax | None (inheritance tax repealed for deaths after June 30, 2004) |
Succession (probate, Louisiana-style): the 2.5% commission and the $125,000 small succession
Louisiana’s civil-law system calls it succession, and the executor’s default statutory commission is 2.5% of the gross inventory value absent a testament provision or agreement (La. C.C.P. art. 3351); attorney fees are reasonable with no schedule. Estates with gross Louisiana property of $125,000 or less at death qualify as a small succession (La. C.C.P. art. 3421), with an affidavit procedure (art. 3431 et seq.) that skips court administration — among the higher small-estate lines in the South. Context: probate cost by state · small-estate limits by state.
Is Louisiana a good state to retire in for taxes?
Post-Act 11, genuinely strong: exempt Social Security and government pensions, $12,000/person private exclusion at 65+, and a flat 3% that undercuts every neighbor with an income tax. Government retirees do best; even portfolio retirees pay less here than in most of the South. The planning notes are structural — Louisiana’s community-property and forced-heirship rules make estate documents matter more than tax rates — and that 2.5% executor commission rewards a well-planned succession.
Louisiana vs. common alternatives
| State | Social Security | Pension / 401(k) / IRA | Estate tax | Inheritance tax |
|---|---|---|---|---|
| Louisiana | Not taxed | Gov pensions exempt; $12,000/person at 65+ otherwise (flat 3%) | None | None |
| Mississippi | Not taxed | Qualified retirement income fully exempt | None | None |
| Texas | Not taxed | Not taxed (no income tax) | None | None |
| Florida | Not taxed | Not taxed (no income tax) | None | None |
Comparison rows summarize general rules; see our 51-state retirement tax table for statute-cited detail.
Considering a Roth conversion? The converted amount is taxed as ordinary income in the year you convert, and Louisiana may treat it differently from the retirement income above — see how all 51 jurisdictions tax Roth conversions.
Finding a financial advisor in Louisiana
Per the SEC’s July 2026 Investment Adviser roster, Louisiana has 79 SEC-registered advisory firms (#32 nationally) managing $98.1 billion (#34 by AUM). Full breakdown: Louisiana advisor statistics. Reviewing fee structures: fee-drag calculator.
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What probate costs in Louisiana
Louisiana uses a hybrid standard — a statutory ceiling or floor with reasonableness applied inside it — so the fee has a bound but not a fixed number. Whether its small-estate route of $125,000 reaches real property is not clearly stated in the statute, so treat that as unresolved rather than permission. Full detail with the governing statute, the court filing fee and the threshold: Louisiana probate cost. To price a specific estate, use the probate cost calculator.
Cite or share this guide
Suggested citation: Clear Money Guide, “Louisiana Retirement Taxes (2026 edition),” statute-cited; clearmoneyguide.com/louisiana-retirement-taxes/. Free to cite with attribution and a link. Data verified July 23–24, 2026 against state statutes, session laws, and revenue-department guidance.
Primary sources
- https://www.law.cornell.edu/regulations/louisiana/La-Admin-Code-tit-61-SS-I-1311
- https://revenue.louisiana.gov/tax-education-and-faqs/faqs/income-tax-reform/did-the-annual-retirement-exemption-change/
- https://revenue.louisiana.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/
- https://taxfoundation.org/data/all/state/estate-inheritance-taxes/
- https://law.justia.com/codes/louisiana/code-of-civil-procedure/article-3351/
- https://law.justia.com/codes/louisiana/2021/code-of-civil-procedure/article-3421/
- https://www.legis.la.gov/legis/Law.aspx?d=111725