You don't even need a level shifter / switch.
Just connect +3V to LED anode, LED cathode to resistor, resistor to port pin.
When the port pin is in the '1' or 'Z' state, the LED sees 1.2V or less: not enough to light up (well, a few nanoamperes worth).
Note this won't work very well for IR LEDs, will be marginal for red, will work excellent for GaP green (but they're very inefficient and you'll need more than 0.2mA anyway), and won't work very well for GaInN/GaN green, blue and white (because they are 3-3.6V parts and really need a bit of boost to be sure you've got enough headroom).
Tim