Louisiana rewards saving for college through its START 529 plan with a state income tax deduction of up to $2,400 per beneficiary, doubled for joint filers. This calculator applies that cap, the carryforward rule, and Louisiana’s flat 3% rate to estimate your real tax savings.
How it works
Only the amount up to the cap reduces this year’s taxable income; the rest carries forward:
cap per beneficiary = $2,400 single / $4,800 married filing jointly
total cap = cap × number of beneficiaries
deductible now = min(contribution, total cap)
carryforward = max(0, contribution − total cap)
state tax savings = deductible now × 3%The deduction lowers taxable income rather than the tax directly, so its value is the deductible amount times your 3% marginal rate. Excess contributions are not lost — they roll into later tax years.
Example and notes
A married couple contributing $6,000 to one child’s START account can deduct $4,800 this year, saving about $144 in Louisiana income tax, and carry the remaining $1,200 forward. Fund a second child and the combined cap rises to $9,600, so the full $6,000 would deduct in a single year. Remember there is no federal deduction for 529 contributions, and only Louisiana START accounts qualify for this state break.