Selling a business in Louisiana: what the state takes (2026)
Louisiana’s top individual income tax rate is 3%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 3%
- Top Louisiana income tax rate (2026)
- $750,000
- State tax on a $25M long-term gain
- 26.8%
- Combined federal and state rate on $25M
- 36 of 51
- Rank by total tax on $25M (1 = highest)
How Louisiana taxes a business sale
- Income tax
- Top rate 3%: Flat rate on all taxable income.
- Long-term capital gains
- Capital gains are taxed as ordinary income at the flat 3% rate. The former net capital gains deduction for selling an equity interest in, or substantially all assets of, a non-public business commercially domiciled in Louisiana (R.S. 47:293(9)(a)(xvii) and (10)) was repealed for taxable periods beginning on or after Jan 1, 2025.
- Relief that applies only in some sales
- None for 2026 sales. LDR allows the repealed Louisiana-domiciled business deduction only where the purchase agreement was signed by all parties and the closing conditions were met before Jan 1, 2025, even if closing happens later.
- Entity-level taxes
- Corporate income tax is a flat 5.5% from 2025, and the corporation franchise tax is repealed for franchise tax periods beginning on or after Jan 1, 2026 (LDR FAQs). S corps and other pass-throughs can make Louisiana's pass-through entity election.
- Local taxes
- Louisiana parishes and cities do not levy a local income tax.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Louisiana tax | $300,000 | $750,000 | $1,500,000 |
| Total tax | $2,680,000 | $6,700,000 | $13,400,000 |
| Effective combined rate | 26.80% | 26.80% | 26.80% |
| Net proceeds after tax | $7,320,000 | $18,300,000 | $36,600,000 |
| Extra tax versus Texas | $300,000 | $750,000 | $1,500,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Louisiana tax
- $750,000
- Taxable gain at 3%
- $750,000
- Total tax
- $6,700,000
- Effective rate on the gain
- 26.80%
- Net proceeds after tax
- $18,300,000
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
- Arkansas24.5% combined, $18.86M net
- Mississippi27.8% combined, $18.05M net
- Texas23.8% combined, $19.05M net
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Florida23.8% combined, $19.05M net
- Nevada23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
Louisiana figures are for tax year 2026. Flat 3% applies to taxable periods beginning on or after Jan 1, 2025 (Act 11 of the 2024 Third Extraordinary Session); LDR lists 3% for '2025 and after', so it applies to 2026. The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1LDR FAQ: What are the individual income tax rates and brackets?
- 2LDR Individual income tax page (flat 3% from 2025)
- 3LDR FAQ: Can I claim the net capital gains deduction for sales on or after Jan 1, 2025?
- 4LDR FAQ: Is the corporation franchise tax repealed?
- 5LDR FAQ: What is the corporation income tax rate?
- 6Liskow: Elimination of Louisiana's net capital gains deduction (Act 11, 2024 3rd ES). Secondary source
- 7Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
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Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Louisiana,” 2026, https://laurent.capital/research/seller-tax-map/louisianaLink (HTML)
<a href="https://laurent.capital/research/seller-tax-map/louisiana">The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Louisiana</a> (Laurent Capital)Planning a sale and weighing the tax cost?
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