529 tax deductions, state by state
33 states and DC take 529 money off state taxable income in 2026, 4 give a credit instead, and 13 give nothing. Nothing comes off federal taxes. Open a state for its rules and what they are worth.
| State | Single | Filing jointly |
|---|---|---|
| AlabamaCounted per return, on its own plan only, by December 31, 2026. | $5,000 | $10,000 |
| AlaskaNo tax on wages. | None | |
| ArizonaCounted for each child, on any state’s plan, by December 31, 2026. | $2,000 | $4,000 |
| ArkansasCounted per return, on its own plan and others in part, by December 31, 2026. | $5,000 | $10,000 |
| CaliforniaTaxes income but gives nothing. | None | |
| ColoradoCounted for each child, on its own plan only, by December 31, 2026. | $26,200 | $39,200 |
| ConnecticutCounted per return, on its own plan only, by December 31, 2026. | $5,000 | $10,000 |
| DelawareCounted per return, on its own plan only, by December 31, 2026. | $1,000 | $2,000 |
| FloridaNo tax on wages. | None | |
| GeorgiaCounted for each child, on its own plan and others in part, by April 15, 2027. | $4,000 | $8,000 |
| HawaiiTaxes income but gives nothing. | None | |
| IdahoCounted per return, on its own plan only, by December 31, 2026. | $6,000 | $12,000 |
| IllinoisCounted per return, on its own plan only, by December 31, 2026. | $10,000 | $20,000 |
| IndianaA credit, on its own plan only, by April 15, 2027. | $1,500 credit | $1,500 credit |
| IowaCounted for each child, on its own plan only, by April 30, 2027. | $6,100 | $12,200 |
| KansasCounted for each child, on any state’s plan, by April 15, 2027. | $3,000 | $6,000 |
| KentuckyTaxes income but gives nothing. | None | |
| LouisianaCounted for each child, on its own plan only, by December 31, 2026. | $2,400 | $4,800 |
| MaineCounted for each child, on any state’s plan, by December 31, 2026. | $1,000 | $1,000 |
| MarylandCounted for each child, on its own plan only, by December 31, 2026. | $2,500 | $5,000 |
| MassachusettsCounted per return, on its own plan only, by December 31, 2026. | $1,000 | $2,000 |
| MichiganCounted per return, on its own plan only, by December 31, 2026. | $5,000 | $10,000 |
| MinnesotaCounted per return, on any state’s plan, by December 31, 2026. | $1,500 | $3,000 |
| MississippiCounted per return, on its own plan only, by April 15, 2027. | $10,000 | $20,000 |
| MissouriCounted per return, on any state’s plan, by December 31, 2026. | $8,000 | $16,000 |
| MontanaCounted per return, on any state’s plan, by December 31, 2026. | $4,600 | $9,200 |
| NebraskaCounted per return, on its own plan only, by December 31, 2026. | $10,000 | $10,000 |
| NevadaNo tax on wages. | None | |
| New HampshireNo tax on wages. | None | |
| New JerseyCounted per return, on its own plan only, by December 31, 2026. | $10,000 | $10,000 |
| New MexicoEvery dollar counts, on its own plan only, by December 31, 2026. | No cap | No cap |
| New YorkCounted per return, on its own plan only, by December 31, 2026. | $5,000 | $10,000 |
| North CarolinaTaxes income but gives nothing. | None | |
| North DakotaCounted per return, on its own plan only, by December 31, 2026. | $5,000 | $10,000 |
| OhioCounted for each child, on any state’s plan, by December 31, 2026. | $4,000 | $4,000 |
| OklahomaCounted per return, on its own plan only, by April 15, 2027. | $10,000 | $20,000 |
| OregonA credit, on its own plan only, by April 15, 2027. | $190 credit | $380 credit |
| PennsylvaniaCounted for each child, on any state’s plan, by December 31, 2026. | $19,000 | $38,000 |
| Rhode IslandCounted per return, on its own plan only, by December 31, 2026. | $500 | $1,000 |
| South CarolinaEvery dollar counts, on its own plan only, by April 15, 2027. | No cap | No cap |
| South DakotaNo tax on wages. | None | |
| TennesseeNo tax on wages. | None | |
| TexasNo tax on wages. | None | |
| UtahA credit for each child, on its own plan only, by December 31, 2026. | $114 credit | $228 credit |
| VermontA credit for each child, on its own plan only, by December 31, 2026. | $250 credit | $500 credit |
| VirginiaCounted for each child, on its own plan only, by December 31, 2026. | $4,000 | $4,000 |
| WashingtonNo tax on wages. | None | |
| Washington, DCCounted per return, on its own plan only, by December 31, 2026. | $4,000 | $8,000 |
| West VirginiaEvery dollar counts, on its own plan only, by December 31, 2026. | No cap | No cap |
| WisconsinCounted for each child, on its own plan only, by April 15, 2027. | $5,280 | $5,280 |
| WyomingNo tax on wages. | None | |
A deduction’s cap is what comes off state taxable income in a year; a credit’s is the most it takes off the tax.
Where a 529 fits among your other accounts, after the 401(k) match and an HSA: the savings waterfall.
Questions people ask
Which states have a 529 tax deduction in 2026?
Alabama, Arizona, Arkansas, Colorado, Connecticut, Delaware, Georgia, Idaho, Illinois, Iowa, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Virginia, DC, West Virginia and Wisconsin.
Which states give a credit instead?
Indiana, Oregon, Utah and Vermont. A credit comes off the tax itself rather than off income.
Which states have no cap?
New Mexico, South Carolina and West Virginia: every dollar put into the state’s own plan comes off state taxable income.
Which states count any state’s 529 plan?
Arizona, Kansas, Maine, Minnesota, Missouri, Montana, Ohio and Pennsylvania. Arkansas and Georgia count other states’ plans too, for a smaller amount. Everywhere else, only the state’s own plan counts.
Which states give nothing?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no tax on wages to take it off. California, Hawaii, Kentucky and North Carolina tax income but give nothing for 529 money.
Is there a federal deduction for 529 money?
No. Nothing comes off your federal taxes going in. What the account earns grows untaxed and comes out tax free when it pays for qualified education; earnings taken out for anything else are taxed, plus a 10% additional tax.
Can leftover 529 money go to a Roth IRA?
Yes, up to $35,000 over the child’s lifetime, into a Roth IRA in the child’s name, and no more in a year than the Roth IRA limit ($7,500 for 2026). The 529 must have been open more than 15 years, money put in during the last five years and what it earned can’t move, and it has to go straight from the plan to the Roth IRA.
Checked on October 1, 2026 against Publication 970, Tax Benefits for Education, Publication 590-A, Contributions to IRAs and each state's revenue department, statute or 529 plan, named on its own page. An estimate for your records, not tax advice.
More if you save or invest
- Tax-equivalent yield calculatorThe money market fund that pays you most after tax
- Savings waterfall calculatorWhich account your next dollar goes to, and how much
- 401(k) contribution limitsThis year’s limits, catch-ups and the total
- Roth IRA income limitsWhere a Roth IRA shrinks and stops, by filing status
- Backdoor RothOver the income line, step by step, and the mega backdoor
Put more back in your pocket.
Reimburse works out where your next dollar goes, a 529 among the rest, and reminds you before your state's last day.