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Capital Gains Tax in Louisiana
By Priya Raman
The 1031 exchange matters more here than the rate itself.
The 1031 exchange matters more here than the rate itself.
A property sale in Louisiana faces a combined capital gains bill of up to 28.1% (20% federal + 3.8% NIIT + 4.25% state). Whether that number ever comes due is mostly a choice, not a fact.
A 1031 like-kind exchange lets an investor sell a property and buy another without triggering the tax bill, as long as the proceeds go straight into the replacement instead of a bank account. Louisiana follows the federal rules here, so the same deferral applies to the state's share of the tax. Work the swap through the 1031 exchange calculator and pin down your 45-day identification window with the timeline calculator.
Louisiana taxes capital gains as ordinary income, topping out at 4.25% at the state level. Stack that on federal long-term rates and the net investment income tax and the total reaches 28.1%. Plug your own numbers, depreciation recapture included, into the capital gains tax calculator to see what a specific sale would actually cost without the exchange.
Selling in Louisiana does not change the federal 45-day and 180-day exchange clock; only the state's share of the total rate shifts. Model your own Louisiana numbers in the timeline calculator.