State tax rates and rules for income, sales, property, estate, and other taxes that impact retirees. Go to Retiree Tax Map Louisiana Add to State Compare List | View List View State Compare List (0) selected | Compare up to 5 The Bottom Line Tax-Friendly The Pelican State offers a bayou full of tax breaks to retirees. Social Security benefits aren't taxed. Military, federal government, and state and local government pensions are exempt from state income taxes, too. Plus, up to $6,000 per person of private pension and annuity income are exempt from income taxes. And what income still gets taxed faces fairly low rates.Property taxes are near the bottom for the U.S. But retirees will still face some of the country's highest sales taxes on everything they buy, potentially including groceries, which are taxable in some localities. Income Tax Range Low: 2% (on $12,500 or less of taxable income for individuals, $25,000 for joint filers)High: 6% (on more than $50,000 of taxable income; $100,000 for joint filers)(Note: On October 9, 2021, Louisiana voters will decide whether to cap the maximum rate at 4.75% starting in 2022.) Taxation of Social Security Benefits Social Security benefits are not taxed by the state. Tax Breaks for Other Retirement Income Income from federal government, designated Louisiana state and local government, and military retirement plans is fully exempt.Railroad Retirement benefits are also exempt.In addition, taxpayers 65 and older can exclude up to $6,000 of other federally-taxable retirement income, including payments from private pensions, annuities and IRAs (up to $12,000 for joint filers). Sales Tax 4.45% state levy. Localities can add as much as 7%, and the average combined rate is 9.52%, according to the Tax Foundation.Groceries: Exempt from state tax, but local taxes may applyClothing: TaxableMotor Vehicles: TaxablePrescription Drugs: Exempt from state tax, but local taxes may apply Real Property Taxes In Louisiana, the median property tax rate is $534 per $100,000 of assessed home value. Homeowners who are 65 or older with adjusted gross income of less than $100,000 can benefit from freezing the assessed value of their homestead. This benefit is lost if improvements in excess of 25% of the home's value are added. Annual Car Taxes and Fees No annual vehicle tax or fee is imposed. Estate and Inheritance Taxes No estate or inheritance tax.