Does Louisiana tax pensions and retirement income?
Taxed, with a retirement exclusion
Partly. From 2025, Louisiana lets people 65 or older exclude up to $12,000 of annual retirement income, adjusted each year for inflation. Benefits from the retirement systems on its list are also excluded.
In the state's own words
Copied word for word from the official document linked below each quote:
“For taxable periods on or after January 1, 2025, the annual retirement exemption for persons 65+ is increased to $12,000 and is required to be adjusted annually based on the percentage increase in the CPI for all urban consumers, as published by the U.S.”
And Social Security?
No. Social Security that is taxed on your federal return may be excluded from Louisiana taxable income. The Louisiana Social Security page quotes the rule.
Federal tax still applies
Whatever Louisiana does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Louisiana Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Did the annual retirement exemption change?Louisiana Department of Revenue. Read on November 12, 2026.