Military Retirement Pay State Income Tax Exemption
100% of military retired pay is excluded from Louisiana state income tax.
At a glance
- Benefit type
- Tax Benefits — Louisiana
- Who it's for
- Veterans
- VA rating needed
- No rating requirement
- Estimated value
- ~$900/year on $30,000 retirement pay
- Where it applies
- Louisiana
- Last verified
- May 12, 2026
What is Military Retirement Pay State Income Tax Exemption?
Military Retirement Pay State Income Tax Exemption is a Louisiana tax benefits benefit for veterans. 100% of military retired pay is excluded from Louisiana state income tax. The listed value is ~$900/year on $30,000 retirement pay.
Who qualifies
- Available to any veteran
- Louisiana residency
Who is eligible
Eligibility
Any military retiree receiving retired pay. Louisiana resident filing state taxes. No disability rating required.
What Military Retirement Pay State Income Tax Exemption covers
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 for Military Retirement Pay State Income Tax Exemption
How to apply
Claimed on Louisiana state income tax return.
Verified information & sources
Compiled and fact-checked against the official source linked above. Benefit rules and dollar amounts change over time — always confirm current details at the official source before applying. A county Veterans Service Officer (VSO) is a free, accredited advocate who can review your eligibility and help you file at no cost.
Frequently asked questions about Military Retirement Pay State Income Tax Exemption
Who qualifies for Military Retirement Pay State Income Tax Exemption?▾
How much is Military Retirement Pay State Income Tax Exemption worth?▾
How do I apply for Military Retirement Pay State Income Tax Exemption?▾
Where can I verify Military Retirement Pay State Income Tax Exemption?▾
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 (excludes some municipal assessments)
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