Seller answers · Louisiana
Do I pay taxes when I sell my house in Louisiana?
Most homeowners don’t. If you owned and lived in the house as your main home for at least 2 of the last 5 years, federal law lets you exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly. Only gain above that is taxable. Louisiana’s individual income tax is a flat 3% for tax years starting in 2025.
Reviewed by Nicole Gaudet, REALTOR®
Updated October 5, 2026
Federal tax
How much home sale profit is tax-free?
The federal home sale exclusion covers up to $250,000 of gain for a single filer and up to $500,000 for a married couple filing jointly. Gain above the exclusion is taxable.
| Filing status | Gain you can exclude |
|---|---|
| Single | Up to $250,000 |
| Married filing jointly | Up to $500,000 |
Source: IRS Publication 523, Selling Your Home.
Eligibility
Who qualifies for the home sale exclusion?
You generally qualify if all three of these are true on the date of sale.
- OwnershipYou owned the home for at least 24 months of the 5 years before the sale.
- UseYou lived in it as your main home for at least 24 months of those 5 years. The months don’t have to be in a row.
- Look-backYou didn’t take the exclusion on another home sale in the 2 years before this one.
Source: IRS Publication 523. It also covers partial exclusions for moves due to work, health or unforeseen events, and special rules for military service.
State tax
Does Louisiana tax the sale of a home?
Louisiana taxes individual income at a flat 3% for tax years beginning on or after January 1, 2025. How a sale flows onto your Louisiana return is a question for your tax preparer.
Source: Louisiana Department of Revenue. Closing costs and the parish’s own fees are separate; see what it costs to sell.
Your records
What lowers the taxable gain on a home sale?
Gain is the selling price minus selling costs and your adjusted basis. Basis starts with what you paid and goes up with qualifying improvements, so receipts matter.
- Keep the closing statement from when you bought.
- Keep receipts for improvements, such as a new roof or an addition.
- Selling costs, such as commission and title fees, reduce the amount realized.
- An inherited home generally starts at its value on the date of death. See selling an inherited house.
Source: IRS Publication 523. Estimate your proceeds with the seller net sheet.
Questions
Taxes on a home sale, answered
Do I pay capital gains tax when I sell my house?
Usually not, if it was your main home for 2 of the last 5 years. You can exclude up to $250,000 of gain, or $500,000 married filing jointly. Only gain above that is taxable.
IRS Publication 523
What is the 2 out of 5 year rule?
You must have owned the home and lived in it as your main home for at least 24 months each during the 5 years before the sale.
IRS Publication 523
What is the Louisiana income tax rate in 2026?
A flat 3% for individual tax years beginning on or after January 1, 2025.
Louisiana Department of Revenue
Can I take the home sale exclusion twice?
Yes, but generally not within 2 years. The exclusion can be used once in any 2-year period.
IRS Publication 523
Can I deduct a loss on the sale of my home?
No. A loss on the sale of your main home isn't deductible.
IRS Publication 523
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General information about federal and Louisiana taxes on a home sale, current as of October 5, 2026. Not tax advice. A tax preparer should advise on your return.