Louisiana Capital Gains Tax Calculator
Louisiana taxes capital gains as ordinary income at the state level, which means a gain on selling shares, property or other investments is added to your other income and taxed using the Louisiana income tax brackets, with no separate preferential long-term rate like the federal system provides. This calculator estimates the Louisiana state tax on a capital gain by stacking the gain on top of your other taxable income and applying the sourced Louisiana Department of Revenue brackets for tax year 2025, then taking the difference. Enter your gain, your other annual taxable income and your filing status to see the state tax attributable to the gain and the effective rate on it. The result is the Louisiana state portion only; federal capital gains tax, which has separate short-term and long-term rates set by the IRS, is calculated separately. Because the gain stacks on your other income, the same gain is taxed at a higher rate the more you already earn. Some states provide specific exclusions or preferential treatment for certain gains; this tool uses the standard ordinary-income method and links the Louisiana Department of Revenue so you can confirm any special rule that applies to you.
Louisiana taxes capital gains as ordinary income. A $20,000.00 gain on top of $60,000.00 of other income (single) adds about $850.00 in Louisiana state tax, an effective rate on the gain of 4.25%.
How Louisiana taxes capital gains
Louisiana taxes capital gains as ordinary income, so the gain is added to your other income and taxed at the Louisiana bracket rates.
state tax on gain = state income tax on (other income + gain) - state income tax on (other income)
effective rate on gain = state tax on gain / gain x 100
Louisiana capital gains tax: frequently asked questions
How are capital gains taxed in Louisiana?
Louisiana taxes capital gains as ordinary income at the state level: the gain is added to your other taxable income and taxed using the Louisiana income tax brackets published by the Louisiana Department of Revenue. This calculator applies those brackets to your gain. Some states provide specific exclusions or rates for particular gains; confirm your situation with the Louisiana Department of Revenue.
How much state tax will I pay on a $20,000.00 capital gain in Louisiana?
Stacked on $60,000.00 of other income, a $20,000.00 gain adds about $850.00 of Louisiana state income tax for a single filer, an effective rate on the gain of 4.25%. Your figure depends on your total income and filing status; enter them above.
Does Louisiana have a separate long-term capital gains rate?
Most states, including the default treatment here, tax long-term and short-term capital gains at the same ordinary income rates, unlike the federal system which has preferential long-term rates. Any state-specific exclusion or preferential rate is set by the Louisiana Department of Revenue; this calculator uses the ordinary income method and links the source.
When did Louisiana's new lower income tax rates take effect?
Louisiana's reduced rates - 1.85%, 3.5%, and 4.25% - took effect January 1, 2025, under Act 1 of the 2024 Third Extraordinary Legislative Session. Prior to 2025, Louisiana had higher rates of 1.85%, 3.5%, and 4.25% in a different bracket structure. Always confirm current rates with the Louisiana Department of Revenue.
Does Louisiana use the federal standard deduction?
No. Louisiana has its own standard deduction under RS 47:294. For 2025 it is $4,500 for single filers and $9,000 for married filing jointly. This is lower than the federal standard deduction.
Are Social Security benefits taxable in Louisiana?
Louisiana excludes Social Security income from state taxable income. Federal Social Security benefits are not subject to Louisiana income tax.
Does Louisiana have a local income tax?
No. Louisiana does not impose local or city income taxes. Only the state-level income tax applies.
Official sources
- Louisiana income tax rates applied to capital gains (tax year 2025): Louisiana Department of Revenue, as at Jun 12, 2026.
Reviewed by the CalculatorHub team, edited by James Graham, 25 June 2026. See our methodology. General information, not financial or tax advice. State-specific exclusions, if any, are set by the Louisiana Department of Revenue.