Louisiana · Student Loan Interest Deduction
Student Loan Interest Deduction in Louisiana (2026)
Deduct up to $2,500 of student loan interest paid during the tax year. Louisiana has a flat 3% income tax, so a Louisiana filer's combined marginal rate on the next dollar at $52,800 of income is about 15% (12% federal + 3% LA).
2026 savings example for Louisiana
Planning estimate for a single filer earning $52,800 (Louisiana median household income in LevyIO's state dataset) who removes $2,500 from taxable income. Federal tax uses the 2026 IRS brackets after the $16,100 standard deduction; LA tax uses the state brackets in LevyIO's dataset and assumes the state follows the federal treatment.
Estimated total savings
$375
Federal savings
$300
$4,156 → $3,856 · 12% bracket
LA state savings
$75
$1,146 → $1,071 · 3% marginal
Combined marginal rate
15%
≈ $150 saved per $1,000 deducted
Statutory maximum for this item in LevyIO's dataset: $2,500.
Federal × Louisiana marginal rates (2026, single)
Gross-income ranges include the federal standard deduction. The LA column is the state marginal rate at the midpoint of each range. The last column is the tax saved per $1,000 deducted at that combined rate.
| Federal bracket | Gross income (single) | LA marginal | Combined | Per $1,000 |
|---|---|---|---|---|
| 10% | $16,100 - $28,500 | 3% | 13% | $130 |
| 12% | $28,500 - $66,500 | 3% | 15% | $150 |
| 22% | $66,500 - $121,800 | 3% | 25% | $250 |
| 24% | $121,800 - $217,875 | 3% | 27% | $270 |
| 32% | $217,875 - $272,325 | 3% | 35% | $350 |
| 35% | $272,325 - $656,700 | 3% | 38% | $380 |
| 37% | Over $656,700 | 3% | 40% | $400 |
Eligibility & forms
Individuals paying student loan interest with income under $90K single/$185K married
- Must be legally obligated
- For qualified education expenses
- Income phase-outs apply
Federal forms: Form 1098-E, Form 1040
Louisiana filing notes
Low 3% rate and federal standard deduction simplify planning. Be aware of very high combined sales tax. Louisiana offers homestead exemption on first $75,000 of assessed value. Social Security is fully exempt.
Common mistakes: Exceeding income limits; Deducting parent PLUS loan interest on student's return.
Frequently asked questions
How much can the Student Loan Interest Deduction save a Louisiana taxpayer in 2026?
In LevyIO's example, a single filer with $52,800 of income (the Louisiana median household income in our state dataset) who removes $2,500 from taxable income saves about $300 in 2026 federal tax (12% marginal bracket) plus about $75 in Louisiana tax (3% state marginal rate), roughly $375 combined. It is a planning estimate computed from the 2026 IRS brackets and LevyIO's LA bracket data, not a survey figure.
What is the Louisiana income tax rate for 2026?
Louisiana has a flat 3% income tax. The LA standard deduction in LevyIO's dataset is $14,600 single / $29,200 married. Flat 3% (2025). Uses federal standard deduction. Highest average combined sales tax (10.11%, Tax Foundation 2026). Low property taxes.
Who qualifies for the Student Loan Interest Deduction in Louisiana?
Individuals paying student loan interest with income under $90K single/$185K married. The federal rules are the same in every state; the requirements are: Must be legally obligated; For qualified education expenses; Income phase-outs apply. Louisiana filers should confirm on the LA return whether the state follows the federal treatment.
Which forms do I file to claim the Student Loan Interest Deduction?
Federal: Form 1098-E, Form 1040. Louisiana: check the Louisiana Department of Revenue instructions for the matching state schedule. Common mistakes: Exceeding income limits; Deducting parent PLUS loan interest on student's return.
Student Loan Interest Deduction in other states
Sources
Reviewed 2026-09-17. Estimates are educational planning figures computed from the IRS 2026 inflation adjustments and LevyIO's state bracket dataset; they are not tax advice.