Are interest and dividends from U.S. government obligations exempt from Louisiana income tax?


Yes. Interest and dividends from obligations issued directly by the U.S. government such as Treasury bills, U.S. savings bonds and U.S. agency obligations are exempt from Louisiana state income tax. Any interest or dividends that are included in the taxpayer’s adjusted gross income may be deducted on the income tax return on Schedule E, line four using the code 01E. This exemption is provided by R.S. 47:293(9)(a)(iii), which states that “Income exempt from taxation under the laws of Louisiana or which Louisiana is prohibited from taxing by the constitution or laws of the United States.” Interest and dividends from U.S. government obligations is prohibited from state taxation by 31 U.S.C. Section 3124(a) which states in part, “Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation or both, to be considered in computing a tax.”

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News & Announcements

September 02, 2025

Hunters get a tax break during the 2nd Amendment Weekend Sales Tax Holiday, Sept. 5-7

BATON ROUGE – Consumer purchases of firearms, ammunition and a wide range of hunting supplies are exempt from state and local sales tax during the Louisiana Second Amendment Weekend Sales Tax Holiday, Friday, Sept. 5 through Sunday, Sept. 7.

August 26, 2025

LDR partners with OMV in Lafayette to resolve driver’s license suspensions

BATON ROUGE – The Louisiana Department of Revenue (LDR) is partnering with the state Office of Motor Vehicles (OMV) to help Lafayette-area taxpayers resolve driver’s license suspensions.

August 25, 2025

New Orleans-area suspects arrested; products seized in crackdown on illegal vapes

BATON ROUGE – A state task force arrested four people and confiscated tens of thousands of banned substances in the second phase of a statewide crackdown on illegal and unauthorized vape products.


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