529 state tax deductions and credits for 2026

“Contributions to the CollegeCounts 529 Plan are deductible on a state of Alabama income tax return up to $5,000 per Alabama taxpayer or $10,000 for married Alabama taxpayers filing jointly if both contribute.”

“The postmark date on your contribution will be accepted as the date of the contribution, as long as it is on or before December 31. The contribution does not have to be received by the plan on or before December 31.”

“Does Alabama income tax law recapture previously deducted contributions when withdrawing money from a CollegeCounts 529 Plan for non-qualified expenses? Yes, the amount withdrawn is added back to the contributing taxpayer’s return, plus a 10 percent penalty.”

“The amount contributed during the taxable year to college savings plans established pursuant to section 529 of the internal revenue code on behalf of the designated beneficiary to the extent that the contributions were not deducted in computing federal adjusted gross income. The amount subtracted may not exceed: (a) $2,000 per beneficiary for a single individual or a head of household. (b) $4,000 per beneficiary for a married couple filing a joint return. In the case of a husband and wife who file separate returns, the subtraction may be taken by either taxpayer or may be divided between them, but the total subtractions allowed both husband and wife may not exceed $4,000 per beneficiary.”

“taxes; 529 contributions; ABLE contributions. ... CHAPTER 395 ... This act applies retroactively to taxable years beginning from and after December 31, 2020. ... APPROVED BY THE GOVERNOR JUNE 30, 2021.”

“The deductible contributions for a tuition savings account established under this chapter shall not exceed five thousand dollars ($5,000) per taxpayer in any tax year. (b) If the aggregate amount of contributions by a taxpayer during a tax year exceeds the limitation under subdivision ... of this section, the unused aggregate amount may be carried forward to the next succeeding four (4) tax years. (c) The deductible contributions for a tax-deferred tuition savings program established by another state under 26 U.S.C. § 529 ... shall not exceed three thousand dollars ($3,000) per taxpayer in any tax year.”

“For the 2026 tax year, the deductions will be increased to $26,200 per taxpayer, per Beneficiary for single filers, or $39,200 per tax filing, per Beneficiary for joint tax return filers.”

“Connecticut families can take an income tax deduction (up to $5,000 for single filers, $10,000 for joint filers) on contributions to CHET accounts.”

“If their CHET contributions during taxable year 2006 exceed $10,000, they may only deduct $10,000 on their 2006 Connecticut income tax return and must carry over the excess to the five taxable years following taxable year 2006.”

“Any amount, up to a limit of $1,000, contributed by an individual during the taxable year to 1 or more accounts established and maintained pursuant to the DE529 Education Savings Plan as set forth in subchapter XII of Chapter 34 of Title 14, provided, however, that no deduction shall be permitted under this subsection for any amount contributed through: a. A change in the designated beneficiary of; or b. A transfer or rollover from an account established and maintained pursuant to the DE529 Education Savings Plan ... no deduction shall be permitted under this section for any amount contributed during the taxable year to an account in a Delaware sponsored tuition program for expenses intended or used for tuition in connection with enrollment or attendance at an elementary or secondary public, private, or religious school ... greater than $100,000 or for joint filers, with a federal adjusted gross income greater than $200,000. For spouses filing a joint return with federal adjusted gross income not greater than $200,000, the amount of the subtraction shall be the amount contributed by the spouses, up to a limit of $2,000.”

“Beginning in Tax Year 2022, this preference allows Delaware residents two deductions from personal income tax.”

“(a) An account owner who files an income tax return in the District of Columbia may claim a deduction in an annual amount not to exceed $4,000 for contributions made to all accounts under the Program. With respect to married individuals (or domestic partners registered under § 32-702 ) filing a joint return, each married individual (or domestic partner registered under § 32-702 ) may claim a deduction in an annual amount not to exceed $4,000 for contributions made to all accounts under the Program for which the married individual (or domestic partner registered under § 32-702 ) is the account owner. (b) If an amount greater than $4,000 is contributed to one or more accounts in a tax year, the excess may be carried forward as a deduction, subject to the annual limit, for 5 years.”

“For tax years beginning on or after January 1, 2020, if you are a Single or Married Filing Separate filer, you may deduct up to $4,000 of your contribution on behalf of any beneficiary of a Georgia Higher Education Savings Account. If you are a Married Filing Joint filer, you may deduct up to $8,000 of your contribution on behalf of any beneficiary of a Georgia Higher Education Savings Account. You also don't have to itemize your deductions to make this adjustment to income.” You can make contributions or payments for such taxable years during or after the taxable year but on or before the deadline for making contributions to an individual retirement account under federal law for such taxable years.”

“For taxable years beginning on or after January 1, 2026, and ending on or before December 31, 2030, an amount equal to the amount of contributions to a qualified tuition program, but not exceeding $2,000.00 per beneficiary; ... If the contributor files a joint return, the sum of contributions constituting deductions on the contributor's return under this paragraph shall not exceed $4,000.00 ... per beneficiary; provided, however, that the sum of contributions constituting deductions on such contributor's return under this paragraph and paragraph (11.1) shall not exceed $8,000.00 per beneficiary;”

“If you contribute to an IDeal account, you can claim an Idaho income tax deduction of up to $6,000 per year with the filing status of single or head of household or up to $12,000 with the filing status of married filing jointly.”

“You must contribute on or before December 31 of a calendar year for it to be deductible in that taxable year.”

“You are allowed to subtract up to $10,000 in contributions if you are single and $20,000 if you are married filing a joint return for contributions you made to the “Bright Start” program, the "College Illinois" Illinois Prepaid Tuition Trust Fund, or the "Bright Directions" program during the tax year. The total subtraction for contributions made to both college savings plans may not exceed $10,000 for single filers and $20,000 for joint filers, even if you contributed more. Contributions to any other IRC Section 529 programs may not be deducted.”

“Beginning with the 2023 tax year, the amount of the credit is the lesser of the following: 20% of the amount of all contributions the taxpayer makes to an account(s) of the Indiana529 Savings Plan during the taxable year, including those designated for K-12 tuition ... the amount of the taxpayer’s adjusted gross income tax liability for the taxable year reduced by the amount of credits allowed under IC 6-3-1 through IC 6-3-7 ... $1,500 for single individuals and married individuals filing a joint return ... This is $750 for married individuals filing a separate return.”

“For 2026, if an Iowa taxpayer is an ISave 529 or IAdvisor 529 Plan account owner, they can deduct the first $6,100 they contribute per beneficiary account from their state taxable income.”

“Iowa taxpayers have until the Iowa individual income tax return deadline for a given year to contribute to their ISave 529 accounts for that year. The deadline is generally April 30. Contributions to ISave 529 or the IAdvisor 529 Plan that were previously deducted for Iowa income tax purposes must be included as Iowa income when distributed, unless they are used to pay for qualified education expenses.”

“Contributions to another state's qualified 529 tuition program are also eligible for the above described subtractions. For example, a taxpayer with Kansas source income may contribute to any other state's qualified 529 program and still take a deduction on their Kansas income tax return up to the maximum of $6,000 per student for married taxpayers filing a joint and $3,000 per student for any other filing status.”

“For all taxable years beginning after December 31, 2022, contributions made to a qualified tuition program account or a qualified ABLE program account on and after January 1 but prior to the date required for filing a return of the successive taxable year may be elected by the taxpayer to apply to the prior taxable year if such election is made at the time of filing the return.”

“Deposits to START accounts are deductible from reported Louisiana income, up to $2,400 per year, per beneficiary. Unused portions may be carried forward to subsequent tax years. Married couples filing jointly may deduct deposits to START accounts from Louisiana State Taxable Income up to a maximum of $4,800 per year, per beneficiary, and any unused portion may be carried forward to subsequent tax years. ... Annual deposits in excess of the maximum are not deductible in subsequent years.”

“If an individual deposits into a beneficiary's account less than the maximum allowable exemption, the difference between the total deposits and the maximum exemption may be carried forward to subsequent years.”

“For taxable years beginning on or after January 1, 2023, the portion of contributions to a qualified tuition program established under Section 529 of the Code up to $1,000 per designated beneficiary. This deduction may not be claimed when federal adjusted gross income exceeds $100,000 for a single individual and married persons filing separate returns or $200,000 for individuals filing married joint returns and heads of households.”

“Currently, Maryland taxpayers can receive a maximum $2,500 subtraction from their State adjusted gross income annually per beneficiary for contributions to the College Investment Plan. Contributions made in excess of $2,500 per beneficiary in a single year may be carried forward and subtracted from your Maryland State adjusted gross income for up to 10 additional years. View our Maryland Tax Benefit Infographic to see an example. To take advantage of this Maryland income subtraction for a particular year, you must make your contribution by December 31 of that year.”

“A deduction against Part B income is allowed in an amount equal to 1) purchases of or 2) contributions made in a taxable year to an account in a pre-paid tuition program or a college savings program established by the Commonwealth or an instrumentality or authority of the Commonwealth. The deduction is capped at $1,000 for a single person or head of household and $2,000 for a married couple filing a joint return.”

“Contributions to the MESP, MiABLE Disability Savings Program, or First-Time Homebuyer’s Savings Account, not to exceed $5,000 for a single return or $10,000 for a joint return per year.”

“The subtraction under this subdivision must not exceed $3,000 for married couples filing joint returns and $1,500 for all other filers, and is limited to individuals who do not claim the credit under section 290.0684”

“(d) "Qualified account" means an account qualifying under section 529 of the Internal Revenue Code.”

“The amount of the credit allowed equals 50 percent of contributions for the taxable year. The maximum credit is $500, subject to the phaseout in paragraphs (c) and (d). In no case is the credit less than zero.”

“What you contribute (up to $10,000 for a single return or $20,000 for a joint return) during a tax year is deductible from Mississippi adjusted gross income. If you make a non-qualified withdrawal, however, the earnings portion will be taxable to a resident recipient, and the contribution portion that was previously deducted will be included in the resident recipient’s Mississippi gross income.”

“Rather than having to wait to see the tax advantages until next year, you can contribute today, file the contributions on your 2024 returns, and receive the tax benefits before April 15 of this year!”

“Annual contributions made to the program held by the board, the deposit program, and any qualified tuition program established under Section 529 of the Internal Revenue Code up to and including eight thousand dollars per taxpayer, and up to sixteen thousand dollars for married individuals filing a joint tax return, shall be subtracted in determining Missouri adjusted gross income pursuant to section 143.121”

“If any deductible contributions to or earnings from any such program referred to in this section are distributed and not used to pay qualified education expenses, not transferred as allowed by 26 U.S.C. Section 529(c)(3)(C)(i), as amended, and any Internal Revenue Service regulations or guidance issued in relation thereto, or are not held for the minimum length of time established by the appropriate Missouri board, then the amount so distributed shall be included in the Missouri adjusted gross income of the participant, or, if the participant is not living, the beneficiary.”

“Taxpayers can deduct eligible contributions to a Montana FESA or another state's 529 plan on their Montana income tax return. Beginning in tax year 2025, House Bill 845 increased the maximum deduction to $4,500 ($9,000 for joint filers if both contribute or the contributions come from joint funds). After tax year 2025, the maximums will increase based on inflation. For tax year 2026, the maximum deduction is $4,600 ($9,200 for joint filers if both contribute or the contributions come from joint funds). The deduction is only available the year the contribution is made.”

“Contributions by an account owner who files a Nebraska state income tax return, including the principal and earnings portions of rollovers from an out-of-state 529 qualified tuition program, are deductible in computing the account owner’s Nebraska taxable income for Nebraska income tax purposes in an amount not to exceed $10,000 ($5,000 for married taxpayers filing separate returns) in the aggregate for all contributions to all accounts within the Trust in any taxable year.”

“For Tax Year 2022 and forward, The New Jersey College Affordability Act allows for three Income Tax deductions for those who file tax returns showing gross income of $200,000 or less.”

“You can deduct up to $10,000 of contributions made during the year into an NJBEST account.”

“Contributions are 100% state income tax-deductible for New Mexico residents and grow tax-free for qualifying educational expenses.”

“Taxpayers may subtract from federal adjusted gross income up to $5,000 per year ($10,000 for married couples filing jointly) of contributions to family tuition accounts , as defined in Education Law Article 14-A to the extent not deductible or eligible for credit for federal tax purposes.”

“If you made a contribution during the tax year to a North Dakota College SAVE account administered by the Bank of North Dakota, you are allowed a deduction for the contribution, up to a maximum of $5,000 ($10,000, if married filing jointly).”

“In computing Ohio adjusted gross income, a deduction from federal adjusted gross income is allowed to a taxpayer who contributes to or purchases tuition units under a qualified tuition program established in accordance with section 529 of the Internal Revenue Code. The amount of the deduction shall equal the amount contributed or purchased during the taxable year to the extent that the amounts of such contributions and purchases were not deducted in determining the contributor's or purchaser's federal adjusted gross income for the taxable year. The combined amount of contributions and purchases deducted in any taxable year by a taxpayer or the taxpayer and the taxpayer's spouse, regardless of whether the taxpayer and the taxpayer's spouse file separate returns or a joint return, is limited to four thousand dollars for each beneficiary for whom contributions or purchases are made. If the combined annual contributions and purchases for a beneficiary exceed four thousand dollars, the excess may be carried forward and deducted in future taxable years until the contributions and purchases have been fully deducted.”

“In no event can this deduction exceed $10,000 ($20,000 on a joint return) per tax year. Any amount of a contribution that is not deducted in the year for which the contribution is made may be carried forward as a deduction from income for the succeeding five years. ... Deductions may be taken for contributions and rollovers made during a taxable year and up to April 15th of the succeeding year, or the due date of a taxpayer’s state income tax return, excluding extensions, whichever is later.”

“To qualify for the credit, you must make contributions during the tax year, up until the date the return is filed or the due date (not including extension), whichever is earlier. Your AGI determines the percentage of your contribution made during the year that you may claim as a credit (see table). For more information about this credit, visit the Embark Savings website or see Publication OR-17 . For tax year 2026, the credit limit will be $190 ($380 if married filing jointly).”

“Two refundable credits—the credit for contributions to an ABLE account and the credit for contributions to an Oregon higher education savings plan account—must be forfeited if the contributions are later withdrawn from the account and used for an unrelated purpose. The forfeited credit amount is added back to tax on the Oregon personal income return for the year when the withdrawal is made.”

“For contributions to IRC Section 529 Qualified Tuition Programs, Pennsylvania allows a maximum yearly deduction equal to the annual federal gift tax exclusion (found at IRC § 2503(b)) per beneficiary, per taxpayer.”

“For calendar year 2026, the first $19,000 of gifts to any person (other than gifts of future interests in property) are not included in the total amount of taxable gifts under § 2503 made during that year.”

“Contributions made to an account under the tuition savings program, including the “contributions carryover” ... The aggregate subtraction pursuant to this subdivision for any taxable year of the taxpayer shall not exceed five hundred dollars ($500) or one thousand dollars ($1,000) if a joint return; (ii) The following shall not be considered contributions: (A) Contributions made by any person to an account who is not a participant of the account at the time the contribution is made; ... (iv) The contributions carryover to a taxable year for purpose of this subdivision is the excess, if any, of the total amount of contributions actually made by the taxpayer to the tuition savings program for all preceding taxable years for which this subsection is effective over the sum of: (A) The total of the subtractions under this subdivision allowable to the taxpayer for all such preceding taxable years; and (B) That part of any remaining contribution carryover at the end of the taxable year which exceeds the amount of any nonqualified withdrawals during the year and the prior two (2) taxable years not included in the addition provided for in this subdivision for those years.”

“What are the deductions for contributions to 529 plans? South Carolina provides deductions for contributions to the South Carolina Tuition Prepayment Program and to the South Carolina College Investment Program ("Future Scholar"). South Carolina does not provide a deduction for contributions to IRC Section 529 plans in general. You can deduct amounts contributed to the plans in the year of the contribution. Contributions made to the Future Scholar program by April 15 can be deducted for either the current or the previous tax year.”

“What 529 amounts are subject to recapture? If amounts are withdrawn from the 529 plan and not used for qualifying purposes, the earnings portion of the withdrawal is included in the gross income of the recipient. The principal amount of the contributions must be recaptured and included in South Carolina taxable income if they were previously deducted and are not withdrawn for qualifying purposes.”

“Tax filer Contributions Credit 2026 Maximum Allowable Contribution for Utah State Income Tax Credit 2026 Maximum Utah State Income Tax Credit per Beneficiary (4.45%) Single $2,560 $113.92 Joint $5,120 $227.84”

“A taxpayer of this State, including each spouse filing a joint return, shall be eligible for a nonrefundable credit against the tax imposed under section 5822 of this title of 10 percent of the first $2,500.00 per beneficiary, contributed by the taxpayer during the taxable year to a Vermont Higher Education Investment Plan account under 16 V.S.A. chapter 87, subchapter 7”

“If you are under age 70 on or before Dec. 31 of the taxable year, enter the lesser of $4,000 or the amount contributed during the taxable year to each Virginia529 account (Virginia 529 prePAID, Virginia 529 inVEST, College America, CollegeWealth). If you contributed more than $4,000 per account during the taxable year, you may carry forward any undeducted amounts until the contribution has been fully deducted. However, if you are age 70 or older on or before Dec. 31 of the taxable year, you may deduct the entire amount contributed during the taxable year.”

“Any payment made under a prepaid tuition contract or other college savings plan administered by the board, pursuant to article thirty, chapter eighteen of this code, is also an authorized modification reducing federal adjusted gross income, but only to the extent the amount is not allowable as a deduction when arriving at the taxpayer's federal adjusted gross income for the taxable year in which the payment is made. This modification is available regardless of the type of return form filed. The taxpayer may also elect to carry forward the modification over a period not to exceed five taxable years, beginning in the taxable year in which the payment was made.”

“The allowable subtraction amounts for the 2026 tax year are $5,280 for single or married filing joint and $2,640 for married filing separate.”

“The Wisconsin subtraction for contributions to a college savings account only applies for contributions to a Wisconsin college savings account. The subtraction does not apply for contributions to a college savings account in any other state. The qualified Wisconsin college savings accounts are Edvest and Tomorrow's Scholar.”

“Therefore, the owner of the account must add to income the amount of distributions received on or after June 1, 2014, that resulted in a federal penalty because the distribution was not used for qualified higher education expenses. The amount to be added to income cannot be more than the total dollar amount contributed to the account for 2014 and thereafter.”

“The contribution date for a specific year is extended to April 15 of the following year for contributions to an Edvest or Tomorrow's Scholar college savings account.”