Louisiana veteran taxes

Military retired pay in Louisiana

Exempttax year 2025Sources 1, 2, 3, 4

Louisiana exempts from state income tax any income received under a retirement system for retirees of the United States Government (La. R.S. 47:44.2). The Department of Revenue states that federal retirement benefits of both military and nonmilitary federal retirees may be excluded, with no age, cap or income test; on the tax year 2025 Form IT-540 they are reported on Schedule E as code 04E, Federal Retirement Benefits.

Survivor Benefit Plan annuities

ExemptSources 5, 2

The Department of Revenue states that federal benefits received from a military survivor benefit plan may also be excluded from Louisiana taxable income. Its tax year 2025 Form IT-540 instructions include benefits received from a military survivor benefit plan in code 04E, Federal Retirement Benefits.

Property tax relief for disabled veterans

Exemption or creditSources 6, 7, 8

On top of the homestead exemption for the first $7,500 of assessed valuation, Louisiana exempts more of the assessed valuation of a homestead owned and occupied by a veteran with a service-connected disability rating from the U.S. Department of Veterans Affairs: the next $2,500 at a rating of 50% to less than 70%, the next $4,500 at 70% to less than 100%, and all remaining assessed valuation at a rating of 100% unemployability or totally disabled (La. Const. art. VII, § 21(K)(1)).

• Rated 50% or more but less than 70%: the next $2,500 of assessed valuation is exempt; ad valorem taxes apply to assessed value above $10,000.
• Rated 70% or more but less than 100%: the next $4,500 of assessed valuation is exempt; ad valorem taxes apply to assessed value above $12,000.
• Rated 100% unemployability or totally disabled: the remaining assessed valuation of the homestead is exempt; the Department of Veterans Affairs describes this as exempt from all ad valorem taxation except for certain municipal tax assessments.

Vehicle registration for disabled veterans

Fee waiver or discountSources 9, 10, 11

Louisiana issues a military honor license plate with the designation “DV” to resident veterans with a service-connected disability of 50% or more (La. R.S. 47:490.4), and a “100% DAV” military honor plate to resident veterans with a service-connected disability of 100% as determined by the U.S. Department of Veterans Affairs (La. R.S. 47:490.31). No fee is charged for these plates, and they are not subject to the renewal requirements that apply to standard plates.

• The plates are restricted to passenger cars, pickup trucks, recreational vehicles, motorcycles and vans, and the secretary may issue one for each vehicle registered in the veteran’s name; a hang tag with the international symbol of accessibility is issued on request at no fee.
• Both statutes require the applicant to comply with all state laws on registration and licensing of motor vehicles; the sources read do not say whether any other registration tax is waived.