CALCMONEY // CAPITAL GAINS // LA
Louisiana adds 4.3% state tax on top of the 23.8% federal rate. On a $1M gain, total tax: $280,500.
Calculate Your Gain4.3%
28.1%
$140,250
$280,500
| Tax Component | Rate | On $500K Gain | On $1M Gain |
|---|---|---|---|
| Federal Long-Term Rate | 20.0% | $100,000 | $200,000 |
| Net Investment Income Tax (NIIT) | 3.8% | $19,000 | $38,000 |
| Louisiana State Tax | 4.3% | $21,250 | $42,500 |
| Total Tax Owed | 28.1% | $140,250 | $280,500 |
| Net Proceeds (after tax) | $359,750 | $719,500 |
Federal rate assumes income in the 20% long-term bracket. NIIT applies to investors with MAGI above $200K (single) or $250K (married). State rate shown is the top applicable rate.
| Gain Amount | LA Total Tax | Zero-Tax State | LA Premium |
|---|---|---|---|
| $250,000 | $70,125 | $59,500 | +$10,625 |
| $500,000 | $140,250 | $119,000 | +$21,250 |
| $1,000,000 | $280,500 | $238,000 | +$42,500 |
| $2,500,000 | $701,250 | $595,000 | +$106,250 |
| $5,000,000 | $1,402,500 | $1,190,000 | +$212,500 |
Louisiana taxes long-term capital gains at up to 4.3%. Combined with the 20% federal rate and 3.8% NIIT, a high-income LA investor faces 28.1% on a large capital event. On a $1M gain, that is $280,500 in total tax, leaving $719,500 after tax.
The difference between realizing a gain in Louisiana versus a zero-tax state like Texas or Florida is $42,500 per $1M in gains. For a $5M exit, the gap is $212,500. Domicile planning is a key lever for HNW investors ahead of a major liquidity event.
The NIIT adds 3.8% on top of the federal rate for investors with Modified Adjusted Gross Income above $200,000 (single) or $250,000 (married filing jointly). This threshold is not indexed to inflation, so it captures most HNW capital gain transactions regardless of state.
| Alaska | None |
| Florida | None |
| Nevada | None |
| New Hampshire | None |
| South Dakota | None |
| California | 13.3% |
| New Jersey | 10.8% |
| District of Columbia | 10.8% |
| Oregon | 9.9% |
| Minnesota | 9.8% |
New Mexico
5.9% state rate
ARArkansas
4.7% state rate
KYKentucky
4.0% state rate
OKOklahoma
4.8% state rate