Saving for your child’s education can be challenging, but a 529 plan remains one of the most powerful tools available to families looking to prepare for future college expenses. These tax-advantaged accounts allow investments to grow tax-free, and withdrawals are generally tax-free when used for qualified education expenses. What many savers don’t realize, however, is that the benefits of a 529 plan may extend beyond the federal tax advantages.
Depending on where you live, contributing to a 529 plan could also reduce your state income tax bill. More than 30 states offer tax deductions or credits for eligible contributions, helping families lower their taxes while building savings for education. In some states, the tax benefit is relatively modest, while others allow taxpayers to deduct the full amount of their contributions or claim substantial tax credits.
Because rules vary widely from state to state, understanding your state’s tax treatment can help you maximize the value of your education savings strategy. Whether you’re opening a new 529 account, contributing to an existing plan, or evaluating which state’s plan to use, it’s important to know what tax incentives may be available to you and your family.
Below is a comprehensive, alphabetically organized list of state income tax deductions and credits for 529 plan contributions for the 2026 tax year. Use this chart as a reference to determine whether your state offers a tax break and how much you may be able to save by leveraging a 529 plan as part of your college savings strategy. Do keep in mind that states frequently update these limits, and some states offer tax credits instead of deductions. Always verify current rules on your state’s 529 website before filing.
529 Plan State Tax Benefits by State (2026)
|
State |
Tax Benefit |
|
Alabama |
Deduction up to $5,000 for single filers OR $10,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Alaska |
No state income tax; no benefit |
|
Arizona |
Deduction up to $2,000 per beneficiary for single filers OR $4,000 per beneficiary for married filing jointly filers; tax parity state |
|
Arkansas |
Deduction up to $5,000 per beneficiary for single filers OR $10,000 per beneficiary for married filing jointly filers; tax parity state |
|
California |
No deduction or credit |
|
Colorado |
Deduction up to $26,200 per beneficiary for single filers OR up to $39,200 per beneficiary for married filing jointly filers (effectively one of the most generous benefits) |
|
Connecticut |
Deduction up to $5,000 per beneficiary for single filers OR $10,000 per beneficiary for married filing jointly filers; excess contributions may be carried forward for 5 years |
|
Delaware |
Deduction up to $1,000 for single filers OR $2,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account; income limitations apply |
|
District of Columbia |
Deduction up to $4,000 for single filers OR $8,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account; excess contributions may be carried forward for 5 years |
|
Florida |
No state income tax; no benefit |
|
Georgia |
Deduction up to $4,000 per beneficiary for single filers OR $8,000 per beneficiary for married filing jointly filers |
|
Hawaii |
No deduction or credit |
|
Idaho |
Deduction up to $6,000 for single filers OR $12,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Illinois |
Deduction up to $10,000 for single filers OR $20,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Indiana |
Tax credit equal to 20% of contributions, up to a maximum of $750 for single filers OR $1500 for married filing jointly filers |
|
Iowa |
Deduction up to approximately $6,100 per beneficiary for single filers OR $12,200 per beneficiary for married filing jointly filers |
|
Kansas |
Deduction up to $3,000 per beneficiary for single filers OR up to $6,000 per beneficiary for married filing jointly; tax parity state |
|
Kentucky |
No deduction or credit |
|
Louisiana |
Deduction up to $2,400 per beneficiary for single filers OR up to $4,800 per beneficiary for married filing jointly filers |
|
Maine |
Deduction up to $1,000 per beneficiary, regardless of single or married filing jointly filer; income limitations apply; tax parity state |
|
Maryland |
Deduction up to $2,500 per beneficiary for single filers OR $5,000 per beneficiary for married filing jointly filers; 10 year carryforward |
|
Massachusetts |
Deduction up to $1,000 for single filers OR $2,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Michigan |
Deduction up to $5,000 for single filers OR $10,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Minnesota |
Deduction up to $1,500 for single filers OR $3,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account; you can choose to claim a state tax deduction OR a state tax credit which covered up to 50% of your contributions with a cap of $500; tax parity state |
|
Mississippi |
Deduction up to $10,000 for single filers OR $20,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Missouri |
Deduction up to $8,000 for single filers OR $16,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account; tax parity state (subject to legislative changes) |
|
Montana |
Deduction up to $3,000 for single filers OR $6,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account; tax parity state (subject to legislative changes) |
|
Nebraska |
Deduction up to $5,000 for single filers OR $10,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Nevada |
No state income tax; no benefit |
|
New Hampshire |
No tax on wage income; no benefit |
|
New Jersey |
Deduction up to $10,000 per taxpayer (income must be $200,000 or less) |
|
New Mexico |
Deduction for 100% of contributions, regardless of the beneficiary’s age, number of beneficiaries, or total contribution amount |
|
New York |
Deduction up to $5,000 for single filers OR $10,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
North Carolina |
No benefit |
|
North Dakota |
Deduction up to $5,000 for single filers OR $10,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Ohio |
Deduction up to $4,000 per beneficiary, with unlimited carryforward; tax parity state |
|
Oklahoma |
Deduction up to $10,000 for single filers OR $20,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
Oregon |
Single filers are eligible for a tax deduction of up to $2,435 or a tax credit of up to $150 per beneficiary; married filing jointly filers are eligible for a tax deduction up to $4,870 or a tax credit up to $300 per beneficiary |
|
Pennsylvania |
Deduction up to $19,000 per beneficiary for single filers OR $38,000 per beneficiary for married filing jointly filer per taxpayer ($38,000 joint); tax parity state |
|
Rhode Island |
Deduction up to $500 for single filers OR $1,000 for married filing jointly filers; per taxpayer deduction, NOT per beneficiary account |
|
South Carolina |
Deduction for 100% of contributions, up to a lifetime maximum deduction of $575,000 per beneficiary |
|
South Dakota |
No state income tax, no benefit |
|
Tennessee |
No state income tax, but TN offers a TIPS matching grant of 4-to-1 matching contributions of up to $500 per year, with a lifetime maximum of $1,500 per beneficiary |
|
Texas |
No state income tax; no benefit |
|
Utah |
Deduction up to $2,560 per beneficiary for single filers OR $5,120 per beneficiary for married filing jointly filers |
|
Vermont |
Credit of up to $250 per beneficiary for single filers OR $500 per beneficiary for married filing jointly filers |
|
Virginia |
Deduction up to $4,000 per account per year; age 70+ taxpayers can deduct the entire amount of their 529 contributions with NO $4,000 cap |
|
Washington |
No state income tax; no benefit |
|
West Virginia |
Deduction for 100% of contributions |
|
Wisconsin |
Deduction up to $2,640 per beneficiary for single filers OR $5,280 per beneficiary for married filing jointly filers |
|
Wyoming |
No state income tax, no benefit |
Tax-Parity States
When evaluating 529 plans, it’s important to understand whether your state is considered a “tax-parity” state. In a tax-parity state, residents can receive the state’s 529 tax deduction or credit regardless of which state’s 529 plan they choose. This gives savers greater flexibility to shop for the plan that best meets their needs based on factors such as investment options, fees, performance, and account features, without sacrificing their state tax benefit. In contrast, many states require residents to contribute to the state’s own 529 plan in order to qualify for a tax deduction or credit. If you live in a tax-parity state, you may be able to take advantage of both a favorable tax break and a high-quality out-of-state 529 plan, making it easier to tailor your college savings strategy to your family’s goals.
The following states generally allow a deduction or credit regardless of which state’s 529 plan you use:
State tax deductions and credits can provide a meaningful boost to your overall college savings strategy. Even a relatively small annual tax benefit can add up over time, allowing you to keep more money invested for future education expenses. Before making contributions, be sure to review your state’s current rules, eligibility requirements, and contribution limits, as these provisions can change from year to year. By understanding the tax incentives available where you live and comparing them with the investment features of different 529 plans, you can make a more informed decision and maximize the value of every dollar you save for education.
Investors should carefully consider the investment objectives, risks, charges and expenses associated with 529 college savings plans before investing. More information about 529 college savings plans is available in the issuer’s official statement available through your financial advisor, and should be read carefully before investing.
**Written by Katelyn Murray, CFP®, ChFEBC®, FBS®, CFT-1™, ECA. The information has been obtained from sources considered reliable but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Katelyn Murray and not necessarily those of RJFS or Raymond James. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Investing involves risk and you may incur a profit or loss regardless of strategy suggested. Every investor’s situation is unique and you should consider your investment goals, risk tolerance, and time horizon before making any investment or financial decision. Prior to making an investment decision, please consult with your financial advisor about your individual situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors of RJFS, we are not qualified to render advice on tax or legal matters. You should discuss tax or legal matters with the appropriate professional. **
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