Louisiana variant. This is a Louisiana-specific version of the Stock Sale Capital Gains Tax Estimator, using pre-defined local figures (tax rates, median home and income values, and typical regional costs). For the full formula, methodology, and FAQ, open the main Stock Sale Capital Gains Tax Estimator.
Most states tax capital gains as ordinary income. In Louisiana, that means a top rate of 4.25% on gains.
Capital gains tax in Louisiana
Federally, long-term gains are taxed at 0%, 15%, or 20% depending on income, plus a possible 3.8% net investment income tax. Louisiana then taxes the same gains as ordinary income at up to 4.25%.
Short-term gains (assets held under a year) are taxed as ordinary income at both levels - usually the most expensive outcome.
About taxes and housing in Louisiana
Louisiana has a graduated income tax with a low top rate and allows a deduction for federal income taxes paid.
Louisiana has low property taxes and a generous homestead exemption, but it has some of the highest auto insurance costs in the nation.
Louisiana's economy is tied to oil and gas, petrochemicals, shipping along the Mississippi River, and a major tourism sector in New Orleans.
Worked example: $50,000 long-term gain
A $50,000 long-term gain: federal 15% = $7,500, plus Louisiana state tax up to 4.25% = $2,125, for a combined bill near $9,625.
Quick reference
- State income tax: 1.85-4.25% across 3 brackets
- State sales tax: 4.45% (plus 5.10% avg local)
- Median home value: $200,000
- Median household income: $57,852
- Effective property tax rate: 0.55%
- Avg auto insurance: $2,864/yr
Frequently Asked Questions
Does Louisiana tax capital gains?
Yes - Louisiana taxes capital gains as ordinary income at up to 4.25%.
What's the difference between short and long-term gains?
Assets held over a year get preferential long-term federal rates (0/15/20%); shorter holds are taxed as ordinary income.