Military Retirement in Louisiana: Complete 2026 Tax Guide
100% tax-free retirement + unique Southern culture
🎯 Quick Summary: Louisiana Military Retirement Taxes (2026)
- ✓ Military retirement pay: 100% EXEMPT from state income tax
- ✓ VA disability payments: Tax-free (federal and state)
- ✓ Survivor Benefit Plan (SBP): 100% exempt
- ✓ Social Security: Also 100% exempt in Louisiana
- ✓ Property tax: Very low + generous homestead exemption
Why Louisiana Is Perfect for Military Retirees
Louisiana combines 100% military retirement tax exemption with one of the most unique cultures in America. Where else can you enjoy world-famous Cajun and Creole cuisine, Mardi Gras, jazz music, and some of the lowest property taxes in the nation—all while keeping every dollar of your military pension?
The state is home to Barksdale Air Force Base (headquarters of Air Force Global Strike Command and home of the legendary B-52), Fort Johnson (formerly Fort Polk, home of JRTC), and NAS JRB New Orleans. These installations provide strong military communities and excellent transition opportunities.
2026 Louisiana Military Retirement Tax Breakdown
State Income Tax on Military Retirement Pay
🎉 100% EXEMPT!
Louisiana exempts 100% of military retirement pay from state income tax. This includes:
- All military pensions (regardless of rank or years served)
- Survivor Benefit Plan (SBP) payments
- Reserve/Guard retirement pay
- No age restrictions or income limits
Social Security Benefits
✓ Also 100% Exempt!
Louisiana does not tax Social Security benefits. Combined with the military retirement exemption, retirees can receive substantial tax-free income.
Louisiana State Income Tax Rates (2026)
While military retirement is exempt, other income is taxed at these rates:
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $12,500 | 1.85% |
| $12,501 - $50,000 | 3.5% |
| Over $50,000 | 4.25% |
Louisiana has been reducing tax rates and may continue to do so. These are relatively low compared to many states.
Other Tax Benefits for Louisiana Veterans (2026)
| Benefit | Details |
|---|---|
| Homestead Exemption |
|
| Property Tax Rate | Average 0.55% - one of the LOWEST in the nation! On $200K home = ~$1,100/year (before exemptions). |
| Sales Tax | 4.45% state rate + local taxes (total 8-12% - can be high). No special veteran exemption. |
| Hunting/Fishing | Free lifetime license for 50%+ disabled veterans. Louisiana is a sportsman's paradise! |
| State Parks | Free entry for disabled veterans and active duty. |
Real Example: How Much You'll Save in Louisiana (2026)
Example: E-7 Retired After 20 Years, Age 62
- • Military retirement pay: $33,600/year
- • Social Security: $20,000/year
- • VA disability (60%): $16,800/year
- • Total income: $70,400
Louisiana Tax
Military retirement: $0 (exempt)
Social Security: $0 (exempt)
VA disability: $0 (exempt)
State tax: $0
California Comparison
Would tax much of this income
State tax: ~$2,800+
Annual Louisiana Savings: $2,800+
🎓 Education Benefits for Veterans & Families in Louisiana
TOPS (Taylor Opportunity Program for Students)
- Louisiana's main scholarship program for high school graduates
- Covers tuition at Louisiana public colleges
- Available to dependent children who attend Louisiana high schools
- Merit-based, requires certain GPA and ACT scores
Veterans Affairs War Orphans Program
- Free tuition for children of veterans who died in service or are 100% disabled
- Covers Louisiana public colleges and universities
- Also covers children of MIA/POW veterans
Louisiana National Guard
- Tuition exemption for Guard members at state schools
- Good option for retirees seeking continued service benefits
In-State Tuition
- All veterans qualify for in-state tuition immediately
- Yellow Ribbon Program available at many institutions
- LSU, Louisiana Tech, and others have veteran services offices
Cost of Living in Louisiana for Military Retirees (2026)
Louisiana offers a cost of living 8% below the national average with exceptionally low property taxes:
| Category | vs. National Average | Notes |
|---|---|---|
| Housing | -20% cheaper | Median home: $210,000. Even lower in Shreveport-Bossier area. |
| Property Tax | 0.55% average | One of lowest in US! Plus $75K homestead exemption. |
| Groceries | -5% cheaper | Commissary access at Barksdale, Fort Johnson, NAS JRB NO. |
| Utilities | +5% more expensive | A/C runs much of the year due to heat and humidity. |
| Healthcare | -8% cheaper | Multiple VA facilities. Good TRICARE network in metro areas. |
Major Military Installations in Louisiana
✈️ Barksdale Air Force Base
- Location: Bossier City (Shreveport area)
- Air Force Global Strike Command HQ
- Home of the B-52 Stratofortress
- 2nd Bomb Wing, 8th Air Force
- Major employer: 10,000+ personnel
- Excellent commissary, BX, golf course
- Strong military community
🏰 Fort Johnson (formerly Fort Polk)
- Location: Vernon Parish (central Louisiana)
- Joint Readiness Training Center (JRTC)
- Trains Army combat units
- 3rd Brigade Combat Team, 10th Mountain Div.
- Major training installation
- Bayne-Jones Army Community Hospital
⚓ NAS JRB New Orleans
- Location: Belle Chasse (New Orleans metro)
- Joint Reserve Base
- Marine Forces Reserve HQ
- Navy and Marine Reserve units
- Coast Guard Air Station
- Access to New Orleans amenities
🛡️ Louisiana National Guard
- Camp Beauregard (Pineville)
- Camp Minden (Minden)
- Jackson Barracks (New Orleans)
- Strong tradition of service
- Hurricane response experience
Best Cities for Military Retirees in Louisiana
🥇 Bossier City / Shreveport (Barksdale AFB)
Best for military community and affordability. Very affordable housing ($150K-$250K), strong Air Force community, easy base access. Casinos add entertainment options. Cost of living well below national average. Excellent for retirees who want to maintain military connections.
🥈 New Orleans Metro
Best for culture and lifestyle. NAS JRB New Orleans provides base access. World-famous food, music, and culture. More expensive than other Louisiana areas but still below national average. Suburbs like Mandeville (across Lake Pontchartrain) offer good value. Consider hurricane risk.
🥉 Leesville / DeRidder (Fort Johnson)
Most affordable option. Very low housing costs ($100K-$180K). Rural setting, close to Fort Johnson. Best for those who enjoy outdoor activities and small-town life. Limited amenities but easy access to commissary, PX, hospital on post.
Baton Rouge
State capital with LSU, good job market. No major base but VA clinic and good healthcare. Middle ground between New Orleans culture and smaller city affordability. Growing tech and healthcare sectors.
Lafayette (Acadiana)
Heart of Cajun country. Amazing food, music, and culture. Affordable living. No military base but oil/gas industry jobs. Great for retirees who want authentic Louisiana culture without New Orleans prices.
VA Healthcare in Louisiana
🏥 VA Medical Facilities in Louisiana
- • New Orleans VA Medical Center: Full-service hospital, specialty care
- • Alexandria VA Health Care System: Central Louisiana, serves Fort Johnson area
- • Overton Brooks VA Medical Center: Shreveport - serves Barksdale area
- • Bayne-Jones Army Community Hospital: Fort Johnson (TRICARE)
- • 10+ Community-Based Outpatient Clinics statewide
TRICARE: Good network coverage in metro areas. Barksdale AFB has clinic for TRICARE Prime. Fort Johnson has Bayne-Jones hospital.
Pros and Cons of Retiring in Louisiana
✅ Pros
- ✓ 100% military retirement exemption
- ✓ 100% Social Security exemption
- ✓ Very low property taxes (0.55%)
- ✓ $75,000 homestead exemption
- ✓ Affordable housing
- ✓ World-famous food and culture
- ✓ Mild winters (no snow)
- ✓ Outdoor recreation (hunting, fishing)
- ✓ Free lifetime licenses for disabled vets
- ✓ Strong military community at Barksdale
- ✓ Unique festivals and events
❌ Cons
- ✗ Hurricane risk (especially coastal)
- ✗ Hot, humid summers
- ✗ High sales tax (8-12%)
- ✗ Flood risk in many areas
- ✗ Higher auto insurance rates
- ✗ Some areas have poor infrastructure
- ✗ Lower-ranked schools in some districts
- ✗ Mosquitoes and humidity
- ✗ Limited public transportation
Frequently Asked Questions
Should I worry about hurricanes?
Hurricane risk is real, especially near the coast. Northwest Louisiana (Shreveport/Barksdale area) is much safer from hurricanes—300+ miles from the coast. Central Louisiana (Fort Johnson area) also sees fewer impacts. If choosing coastal areas, get flood insurance and have an evacuation plan.
How do property taxes work with the homestead exemption?
Louisiana exempts the first $75,000 of your home's assessed value from property tax. Since homes are assessed at 10% of market value, a $200,000 home has $20,000 assessed value—completely covered by the exemption. Many Louisiana homeowners pay very little or no property tax!
Is Fort Johnson isolated?
Fort Johnson (formerly Fort Polk) is in rural central Louisiana. The nearest cities (Leesville, DeRidder) are small. Alexandria is about 50 miles away with more amenities. It's very affordable but does feel isolated. Great for outdoor enthusiasts, less ideal for those wanting urban amenities.
What about the culture and lifestyle?
Louisiana offers a truly unique American experience. Cajun and Creole cuisine, jazz and zydeco music, Mardi Gras, festivals year-round. The "laissez les bons temps rouler" (let the good times roll) attitude is real. If you enjoy food, music, and a relaxed lifestyle, Louisiana is hard to beat.
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