Louisiana tax deductions and write-offs (2026)

No. Louisiana fully exempts military retired pay from state income tax. Other retirement income: Taxpayers 65+ may exclude up to $12,000 per person of retirement income, including pensions, annuities, and IRA/401(k) distributions (Act 11 of 2024).

Partly. Taxpayers 65+ may exclude up to $12,000 per person of retirement income, including pensions, annuities, and IRA/401(k) distributions (Act 11 of 2024). The $12,000 amount is indexed for inflation beginning in 2026;.

No. Louisiana exempts Social Security benefits that are taxed on the federal return. Statutory basis: R.S. 47:44.2. A separate exclusion for other retirement income (age 65+) is $12,324 per person for 2026.

Yes: Louisiana offers the Louisiana Earned Income Credit, 5% of the federal EITC (through 2030) (refundable). Residents who claimed the federal EITC. Drops to 3.5% from 2031 under current law. A 2025 bill (HB 133) to raise it to 10% stalled in committee.

Only instead of income tax: itemizers in Louisiana pick sales tax (5% state rate, about 10.13% with local taxes) or state income tax, whichever is bigger. Highest average combined rate in the U.S.; the state rate rose from 4.45% to 5% on Jan. 1, 2025, and the 5% rate runs through Dec. 31, 2029.

Yes on your federal return if you itemize, within the $40,400 SALT cap. Louisiana adds its own break: Special assessment level freezes the assessed value for owners 65+ or disabled with AGI up to $102,700 (2026 applications).

No: Louisiana doesn't offer a renter's credit or rent rebate. Louisiana has no state tax credit, deduction, or rebate specifically for renters. Louisiana's homestead exemption and senior assessment freeze apply only to owner-occupied homes. Lower-income renters can still claim Louisiana's earned income credit: 5% of the federal EITC (through 2030).

Partly: Louisiana's automobile license tax (plate fee) is based on your vehicle's value, so it's deductible as personal property tax if you itemize. Tax is $10 per year plus $1 per $1,000 of value above $10,000, collected two years at a time by OMV.

Louisiana switched to a flat 3% income tax in 2025 with a bigger standard deduction, and people 65+ can exclude up to $12,000 of retirement income.

Yes on your Louisiana return: $2,400 single / $4,800 joint per beneficiary. Only contributions to the state's own plan count. START plan only; the state also adds income-based matching earnings enhancements (2%-14%) to START deposits.

No state child tax credit, but Louisiana has a child care credit: Percentage of the federal credit, based on federal AGI: 50% at $25,000 or less (refundable); 30% for $25,001-$35,000; 10% for $35,001-$60,000; above $60,000, the lesser of 10% or $25. Above $25,000 the credit is nonrefundable but can be carried forward 5 years. Louisiana also has a parent credit for care of children under 6 at quality-rated (2+ star) child care centers. It was renamed from the School Readiness Tax Credit to the Workforce Child Care Tax Credit starting 2026, and is refundable at federal AGI of $25,000 or less. Louisiana does have an earned income credit: 5% of the federal EITC (through 2030).

Yes, as a business expense: Louisiana charges $125 to form an LLC; ongoing: $35 annual report. Fees increased Oct 1, 2026 under Act 921 (formerly $100 formation / $30 report). Annual report due on the formation anniversary.