Louisiana 529 tax deduction in 2026
Louisiana caps the yearly exclusion low, then lets the excess wait as long as it takes: a large deposit is never wasted, only spread out.
Louisiana tax saved on this contribution
$144
2.4 % of what you put in comes back on your 2026 return. Capped: only 4,800 dollars of the contribution count.
| Subtracted from state income | $4,800 |
| Your state marginal rate | 3.00 % |
| Cap that applies this year | $4,800 |
| Back per $1,000 contributed | $24 |
Louisiana: Account owners may exclude START deposits from Louisiana taxable income up to $2,400 per account (ESA) owned per year, or $4,800 per beneficiary per year on a joint return; unused exclusion carries forward to later years. Separate START K12 accounts allow a deduction up to $1,200 single / $2,400 joint. Read on 2026-10-19. No federal deduction exists for 529 contributions.
| Taxable income | Marginal rate | Tax saved |
|---|---|---|
| $50,000 | 3.00 % | $144 |
| $100,000 | 3.00 % | $144 |
| $200,000 | 3.00 % | $144 |
| $400,000 | 3.00 % | $144 |
Worked out by Radif Partners · How we calculate · Louisiana rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
Louisiana lets the owner of a START Saving Program account exclude deposits from Louisiana taxable income, up to $2,400 per account owned each year, or $4,800 per beneficiary on a joint return. What sets the state apart is the carryforward: deposits above the yearly limit are not lost and can be excluded in later years, with no end date in the program's material. With the flat 3 % rate in force since 2025, a single filer at $52,000 who deposits $2,400 saves $72, and a joint couple at $105,000 who put $4,800 into each of two children's accounts saves $288. Only START, the state's own program, counts. A separate START K12 program has its own smaller deduction for Louisiana school tuition. Excluded deposits come back as income when they are refunded for a non-qualified use. Several points, including the 2025 federal changes and rollovers out, are not addressed in the state material read.
| Benefit for contributions | Deduction |
|---|---|
| Cap | $2,400 single, $4,800 joint per account |
| Another state’s plan counts | No, in-state plan only |
| Carryforward of the excess | unlimited years |
| State plans (official names, no recommendation) | START Saving Program, START K12 Saving Program |
| Account balance limit | $500,000 |
| K-12 withdrawals qualified for state tax | Partly |
| 529 to Roth IRA rollover qualified | Not stated by the state |
| Student loan payments qualified | Yes |
| Add-back on a rollover to another state’s plan | Not settled by the state text |
A modest yearly cap with no expiry on the excess
The START benefits page and the program home page both describe the carryforward: when deposits exceed the yearly exclusion, the unused amount moves to the following years. Neither page sets a number of years. That changes how a windfall should be read. A single nurse at $52,000 who puts in a $10,000 inheritance excludes $2,400 this year, saving $72, and the remaining $7,600 can be excluded over the next years, about 5 returns in all at $2,400 a year. At 3 %, the whole deposit is worth $300 of Louisiana tax in the end, as long as she keeps enough taxable income. The calculator only shows the first year.
First-year START exclusion on a lump sum
Louisiana tax saved on this contribution
$72
| Subtracted from state income | $2,400 |
| Your state marginal rate | 3.00 % |
| Cap that applies this year | $2,400 |
| Back per $1,000 contributed | $7 |
Per account, per beneficiary
The limit is counted per account owned, and on a joint return per beneficiary, so a family with two children and two accounts reaches $9,600 of exclusion in a year. Louisiana no longer has graduated brackets, so the value of an excluded dollar does not move with earnings. The START disclosure booklet in use is dated April 15, 2020, and the amounts were confirmed on the program's pages rather than in the statute or the Form IT-540 instructions, which were not read.
Two programs: START for college, START K12 for school
Louisiana keeps K-12 savings in a separate program. START accounts pay qualified higher education expenses. START K12 accounts have their own, smaller deduction and their earnings are not taxable when they pay tuition at an approved Louisiana school. No official statement was found on how Louisiana treats a federal K-12 withdrawal of up to $20,000 taken from a regular START account, and the state material read does not address the other 2025 federal changes, such as credential programs. The K-12 page covers the federal rule alone.
Refunds, rollovers and loans
When deposits that were excluded are refunded for a non-qualified purpose, they return to the owner's Louisiana taxable income in the year received, and the earnings are taxed too. A single filer who excluded $9,600 over four years and then closes the account for a non-qualified use adds that amount back.
START refund for a non-qualified use
Tax on this withdrawal
$1,128
| Earnings part | $2,400 |
| Federal income tax at 22 % | $528 |
| 10 % additional tax | $240 |
| Louisiana tax and add-back | $360 |
The state texts read do not say whether a rollover to another state's plan triggers the same add-back, and they do not state the Louisiana treatment of a 529 to Roth IRA rollover, although START offers a form for it. The 2020 disclosure booklet lists student loan repayments among qualified higher education expenses, without confirmation from the Department of Revenue. START accepts deposits until a beneficiary's total reaches $500,000.