Military Retirement Pay State Income Tax Exemption
100% of military retired pay is excluded from Louisiana state income tax.
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Apply directly through the official Louisiana agency.
About this benefit
Eligibility
Any military retiree receiving retired pay. Louisiana resident filing state taxes. No disability rating required.
Covers
100% of military retired pay is exempt. Combat pay and hazardous duty pay (exempt from federal tax) are also exempt from state tax.
Estimated savings
At Louisiana's flat 3% income tax rate (effective 2025), a retiree receiving $30,000/year saves approximately $900/year.
How to apply
Claimed on Louisiana state income tax return.
Verified against official source
Last checked 2026-05-05 against revenue.louisiana.gov. Always confirm current rates and rules with the Louisiana state agency before applying.
Other Louisiana Tax Benefits
Property Tax Exemption (50-69% Disabled)
Additional $2,500 of assessed value exempt beyond homestead exemption for veterans with 50-69% disability.
$2,500 additional assessed value exempt
Property Tax Exemption (70-99% Disabled)
Additional $4,500 of assessed value exempt beyond homestead exemption for veterans with 70-99% disability.
$4,500 additional assessed value exempt
Full Property Tax Exemption (100% Disabled)
Complete exemption from all ad valorem property taxation for 100% disabled veterans.
100% property tax exemption
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