Louisiana Tax Deductions: Standard, Itemized, and Exclusions

Louisiana tax deductions changed sharply under the state’s 2025 reform. Most filers now take a much larger standard deduction — $12,875 for single filers and $25,750 for joint filers in 2026 — against a flat 3% income tax. A narrow itemized deduction survived for excess medical expenses, and specific subtractions still exist for retirement income, military pay, START 529 contributions, and private school tuition. Many older credits and personal exemptions were repealed, so advice written before 2025 is largely out of date.¹

The Standard Deduction Most Filers Use

Louisiana’s standard deduction reduces your taxable income by a flat amount tied to filing status. The reform nearly tripled the pre-2025 figures of $4,500 and $9,000, and the new amounts adjust for inflation each year starting in 2026.¹ For the 2026 tax year:²

Single or married filing separately: $12,875
Married filing jointly, qualifying surviving spouse, or head of household: $25,750

You don’t need to take any extra step to claim it. The deduction is built into Form IT-540. Because the amount is so much higher than before, far fewer people benefit from trying to itemize on the state return.

Itemized Deductions Are Narrow in Louisiana

This is where Louisiana surprises people. You cannot transfer your full federal Schedule A to your state return. Mortgage interest, charitable contributions, and state and local taxes produce no separate Louisiana deduction. The only category that counts is medical and dental expenses, and only the portion that exceeds the federal standard deduction for your filing status.³

The calculation happens on Lines 9A through 9D of Form IT-540:

Line 9A: total federal itemized deductions from Schedule A, Line 17
Line 9B: federal medical and dental expenses from Schedule A, Line 4
Line 9C: the federal standard deduction for your filing status
Line 9D: Line 9B minus Line 9C. Zero or less means no additional Louisiana deduction.

For 2026, the federal standard deduction is $16,100 for single filers, $32,200 for joint filers, and $24,150 for head of household.⁴ Your medical expenses have to top those amounts before Louisiana adds anything. Catastrophic bills or extensive long-term care are the usual reasons someone clears the bar.

Retirement Income and Social Security

If you’re 65 or older, Louisiana exempts $12,000 of annual retirement income from state tax. This applies to pension and annuity income included in your tax table income, and the figure adjusts annually for inflation beginning January 1, 2026.⁵ Each qualifying spouse on a joint return can claim the exclusion separately, so a couple both over 65 could exclude up to $24,000 combined.

Social Security benefits, federal government retirement pay, and Railroad Retirement benefits are fully exempt from Louisiana income tax at any age and any income level.⁶ Those exemptions apply automatically and don’t count against the $12,000 exclusion.

Military Pay Exclusion

Louisiana residents on active duty who are stationed outside the state for 120 or more consecutive days can exclude up to $50,000 of military compensation from state income tax.⁷ The limit rose from $30,000 to $50,000 starting with the 2022 tax year under Act 161 of the 2021 Regular Session. Older guides still show $30,000, so double-check any preparer or software that uses that number.

START 529 College Savings Contributions

Contributions to Louisiana’s START Saving Program, the state’s 529 plan, are deductible from Louisiana taxable income up to $2,400 per year per account for a single filer.⁸ Married couples filing jointly can deduct up to $4,800 per year per beneficiary.⁹ If you contribute more than the annual limit, the excess carries forward to future tax years, so front-loading doesn’t cost you the deduction.

Private School Tuition Deduction

Louisiana allows a deduction of up to $6,000 per child for tuition and fees paid to qualifying nonpublic elementary or secondary schools, as well as public laboratory schools operated by a college or university. The child must be claimed as a dependent on your federal return for the current or prior tax year, and the deduction cannot exceed your total taxable income. The school also has to meet specific accreditation standards.¹⁰ At the 3% flat rate, $6,000 translates to $180 in state tax saved per child. Preparers unfamiliar with Louisiana provisions often miss it.

What the 2025 Reform Eliminated

Several provisions people used to rely on no longer exist. The extra personal exemptions for dependents, blind taxpayers, and those over age 65 were repealed. So was the net capital gain deduction and dozens of specialty tax credits.¹

The federal income tax deduction, which once let Louisiana filers subtract their full federal tax bill from state taxable income, was repealed for tax years after 2021 under Act 395 of the 2021 Regular Session.¹¹ Louisiana’s state historic rehabilitation credit expired for expenses incurred on or after January 1, 2026, and the state solar energy credit expired years earlier. Any guide that references these is out of date.

How to Claim Deductions on Form IT-540

Louisiana residents file Form IT-540, available through the Department of Revenue website.¹² The standard deduction is built in, so no separate election is required. If you’re claiming the limited itemized deduction for excess medical expenses, complete Lines 9A through 9D on the main form.³ Special exclusions and deductions — retirement income, military pay, START contributions, private school tuition — are reported on the appropriate adjustment lines of the IT-540.

Keep documentation for anything you claim. That means deposit confirmations for START contributions, tuition receipts and proof of accreditation for the private school deduction, and military orders showing the required period stationed outside Louisiana. The IRS recommends holding tax records for at least three years from the filing date, and Louisiana follows a similar timeline. If you substantially underreport income, the review window can stretch to six years.¹³

Mistakes That Cost Louisiana Filers Money

The biggest error right now is relying on outdated advice. Standard deduction amounts, available credits, and how itemized deductions work all shifted in 2025. Beyond that, watch for these:

Treating federal itemized deductions as if they carry over. They don’t. Only medical and dental expenses above the federal standard deduction produce a Louisiana deduction.
Using the old $30,000 military pay exclusion. The current limit is $50,000.⁷
Forgetting the START carry-forward. Contributions above the annual cap don’t disappear; they roll to future years. Track them so you actually claim the deduction.
Claiming repealed exemptions. The additional personal exemptions for age 65+, blindness, and dependents are gone. If tax software pre-fills them from a prior year, delete them.¹
Skipping the private school tuition deduction. At $6,000 per child, it’s easy to miss but straightforward to document.

1
Louisiana Department of Revenue. Revenue Information Bulletin 25-012 Louisiana Individual Income Tax Reform
2
Louisiana Department of Revenue. Proposed Regulation LAC 61:I.1501 – 2026 Withholding Tables
3
Louisiana Department of Revenue. IT-540 Instructions – Louisiana Resident Income Tax Return 2025
4
Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
5
Louisiana State Legislature. Louisiana Revised Statutes Title 47 – 44.1 Annual Retirement or Disability Income Exemption From Taxation
6
Louisiana State Legislature. Louisiana Revised Statutes Title 47 – 44.2 Exemption of Certain Benefits From Income Tax
7
Louisiana Department of Revenue. Revenue Information Bulletin 22-015 Military Pay Exclusion
8
Louisiana Student Tuition Assistance and Revenue Trust. Louisiana Student Tuition Assistance and Revenue Trust
9
Louisiana Student Tuition Assistance and Revenue Trust. START Frequently Asked Questions
10
Louisiana State Legislature. Louisiana Revised Statutes Title 47 – 297.10 Deduction for Tuition and Fees
11
Louisiana Department of Revenue. Does the Constitutional Amendment Eliminate the Federal Income Tax Deduction
12
Louisiana Department of Revenue. Tax Forms for Individuals
13
Internal Revenue Service. How Long Should I Keep Records