Capital Gains Tax for Louisiana (2026)
Louisiana (LA) Key Facts
State Capital Gains Rate
4.25%
Taxed As
Ordinary income
Federal Rate Applies
Yes (0%, 15%, or 20%)
Long Term vs Short Term
Both taxed at state level
How This Calculator Works in Louisiana
This calculator estimates your combined federal and Louisiana capital gains tax. Enter your gain amount, holding period, and income to see your estimated tax.
Louisiana Overview
Louisiana taxes capital gains as ordinary income at up to 4.25%. Federal capital gains taxes also apply, with long-term rates of 0%, 15%, or 20% depending on income. The combined state and federal burden should be considered when planning asset sales or investment strategies.
How Louisiana Compares
Louisiana's capital gains rate of 4.25% compares to Texas at 0% and Mississippi at 4.7%. State capital gains taxes significantly impact net investment returns.
| State | Top Rate | Notes |
|---|---|---|
| Texas | 0% | Texas has a capital gains rate of 0%. |
| Mississippi | 4.7% | Mississippi has a capital gains rate of 4.7%. |
| Arkansas | 3.9% | Arkansas has a capital gains rate of 3.9%. |
Louisiana's capital gains rate of 4.25% compares to a national average of approximately 5.04%. This is below the national average.
Tips for Louisiana Residents
- 1Louisiana taxes capital gains as ordinary income at up to 4.25%.
- 2Federal long-term gains (held 1+ year) are taxed at 0%, 15%, or 20%. Louisiana's state tax applies on top of the federal rate.
- 3Hold investments over one year to qualify for lower federal long-term rates rather than ordinary income rates.
- 4Tax-loss harvesting—selling losing investments to offset gains—reduces both federal and Louisiana state capital gains tax.
- 5Consider the combined federal + state rate when planning large asset sales. The total can exceed 28.1% for high earners.