Louisiana Capital Gains Tax: 2026 Rules and Calculator

Short answer: Louisiana taxes capital gains as ordinary income at a flat 3% for tax years 2025 and later (La. R.S. 47:32, as amended in 2024). On top of that comes federal capital gains tax (0%, 15% or 20% for 2026 under IRS Rev. Proc. 2025-32, and up to 25% on building depreciation) and the 3.8% net investment income tax above $250,000 of income for married couples or $200,000 single (IRC 1411).

Louisiana capital gains tax calculator

Enter your sale: rental property, your home, land, a business, stock or collectibles. You get the 2026 tax in Louisiana (federal, the 3.8% tax and Louisiana tax) and the same sale spread over the years the buyer pays you. It runs in your browser on the same engine as our capital gains tax calculator.

Example loaded. Change any number to run yours.

What you are sellingRental or investment real estateYour home (Section 121 exclusion)LandA business you work inPublicly traded stock or fundsCollectibles (art, coins, gold, cars)

Sale price

Selling costs (commission, title, legal)

Your adjusted basis

What you paid plus improvements, minus depreciation or depletion taken. Inherited: the value at the date of death.

Depreciation taken on the building

How long you have held itMore than 1 year1 year or less

State you will be taxed inAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Filing statusMarried filing jointlySingleHead of household

Other income this year (before deductions)

Years the buyer pays you over (1 = all now)

Expected sale date

Louisiana taxes capital gains as ordinary income at a flat 3% for tax years 2025 and later (La. R.S. 47:32, as amended in 2024). Source: Louisiana Revised Statutes 47:32, checked October 13, 2026. Federal: 2026 brackets per IRS Rev. Proc. 2025-32 (0%, 15% and 20% on long-term gain; 20% above $613,700 of taxable income married filing jointly); 25% cap on building depreciation, IRC 1(h)(1)(E); 28% cap on collectibles, IRC 1(h)(4); 3.8% net investment income tax above $250,000 married or $200,000 single, IRC 1411.

Estimated tax on this sale (2026), example in Louisiana

$200,849

You keep $1,021,151 after selling costs and tax. The tax is 25% of your gain.

Your gain

• Sale price less selling costs$1,222,000
• Less your basis$420,000
• Your taxable gain$802,000
• Depreciation, taxed at up to 25%$170,000
• Long-term gain at 0%, 15% or 20%$632,000

The tax, line by line

• Federal income tax$149,733
• Net investment income tax (3.8%)$27,056
• Louisiana tax$24,060
• Total tax$200,849
• You keep$1,021,151

All in one year vs spread over 10 years: tax of $200,849 against $157,572 when the buyer pays you over 10 years. You keep $43,277 more.

Get the REAL numbers

Hans Goldstein, EAAdmitted to practice before the IRS

Talk to capital gains expert Hans Goldstein, EA.

These are estimates. Have a qualified tax professional run your real numbers in a 15-minute scope call.

Why now: the closing date and how the buyer pays you are set before closing, and they decide how much Louisiana and federal tax this sale costs.

Book my 15-minute call

This is an estimate. Getting it right down to the tee takes your actual tax forms (returns, K-1s, depreciation schedules), a consult and a paid analysis. The first 15-minute scope call is free.

How Louisiana taxes capital gains in 2026

Louisiana taxes capital gains as ordinary income at a flat 3% for tax years 2025 and later (La. R.S. 47:32, as amended in 2024).

Selling Louisiana property while living elsewhere: Louisiana taxes a nonresident on gain from real estate and other property located in Louisiana, so selling Louisiana property from another state still means a Louisiana return.

Worked example (computed October 13, 2026)

A New Orleans rental sale at the flat 3%. A married couple filing jointly in Louisiana sells a rental property for $1,300,000 with $78,000 of selling costs. Basis is $420,000 after $170,000 of depreciation, and other income is $160,000.

• Taxable gain: $802,000, of which $170,000 is depreciation taxed at up to 25%.
• All in one year (2026): $149,733 federal income tax, $27,056 net investment income tax and $24,060 Louisiana tax (3% of the gain): $200,849 in total, 25% of the gain.
• Spread over 10 years on a note: $157,572 of tax on the gain, so the seller keeps $43,277 more. Interest on the note is taxed separately.

What the calculator simplifies

It applies the rule above to the whole gain for one sale in 2026. It also leaves out local taxes unless named above, the alternative minimum tax effect of note interest, and equipment recapture on a business sale. Federal tables for later years carry the 2026 tables forward.

Spreading a Louisiana sale over several years

On an installment sale the gain is reported as the buyer pays you (IRC 453), so each year's slice can stay in lower federal brackets and under the 3.8% threshold. Building depreciation is reported first (Treas. Reg. 1.453-12), equipment recapture is taxed in the year of sale (IRC 453(i)), and notes over $5,000,000 owe the Section 453A interest charge. More on how it works: what a structured installment sale is.

Sources

• Louisiana Revised Statutes 47:32
• IRS Rev. Proc. 2025-32: 2026 federal brackets.
• IRC 1(h) and IRC 1411: capital gain rates and the 3.8% tax (as in force October 2026).

Frequently asked

What is the capital gains tax rate in Louisiana for 2026?

Louisiana taxes capital gains as ordinary income at a flat 3% for tax years 2025 and later (La. R.S. 47:32, as amended in 2024). Federal capital gains tax and the 3.8% net investment income tax come on top.

How much tax on a $1,300,000 sale in Louisiana?

In the example on this page, a married couple filing jointly selling a rental property for $1,300,000 with a $802,000 taxable gain owes $200,849 in 2026: $149,733 federal, $27,056 net investment income tax and $24,060 Louisiana tax. Spread over 10 years, the tax is $157,572.

Do nonresidents pay Louisiana tax when they sell property there?

Louisiana taxes a nonresident on gain from real estate and other property located in Louisiana, so selling Louisiana property from another state still means a Louisiana return.