529 Tax Deduction by State: which states pay you to save for college
Put money in a 529 college fund and many states take some off your state tax bill — usually $100 to $700 a year, and you don't need new money to get it (the federal childcare tax breaks can be what you put in). Here's what we've verified for 2026, state by state, in plain English.
Every state with a 529 tax break (click yours)
| State | Deduct up to (single / joint) | Worth about | Limit is | Plan |
|---|---|---|---|---|
| Maryland | $2,500 / $5,000 | ≈ $350 | per child | Own plan only |
| Virginia | $4,000 | ≈ $230 | per account | Own plan only |
| Washington, DC | $4,000 / $8,000 | ≈ $680 | per taxpayer | Own plan only |
| Pennsylvania | $19,000 / $38,000 | ≈ $1,167 | per child | Any state’s plan |
| New York | $5,000 / $10,000 | ≈ $540 | per return | Own plan only |
| New Jersey | $10,000 | ≈ $637 | per return | Own plan only |
| Illinois | $10,000 / $20,000 | ≈ $990 | per return | Own plan only |
| Ohio | $4,000 | ≈ $110 | per child | Any state’s plan |
| Georgia | $4,000 / $8,000 | ≈ $399 | per child | Own plan only |
| Michigan | $5,000 / $10,000 | ≈ $425 | per return | Own plan only |
| Massachusetts | $1,000 / $2,000 | ≈ $100 | per return | Own plan only |
| Arizona | $2,000 / $4,000 | ≈ $100 | per child | Any state’s plan |
| Indiana | $7,500 | ≈ $1,500 (credit) | per return | Own plan only |
| Missouri | $8,000 / $16,000 | ≈ $752 | per taxpayer | Any state’s plan |
| Wisconsin | $5,280 | ≈ $280 | per child | Own plan only |
| Colorado | $26,200 / $39,200 | ≈ $1,725 | per child | Own plan only |
| Minnesota | $1,500 / $3,000 | ≈ $500 (credit) | per return | Any state’s plan |
| Alabama | $5,000 / $10,000 | ≈ $500 | per taxpayer | Own plan only |
| Arkansas | $5,000 / $10,000 | ≈ $370 | per taxpayer | Any state’s plan |
| Connecticut | $5,000 / $10,000 | ≈ $550 | per return | Own plan only |
| Delaware | $1,000 / $2,000 | ≈ $132 | per return | Own plan only |
| Idaho | $6,000 / $12,000 | ≈ $636 | per taxpayer | Own plan only |
| Iowa | $6,100 / $12,200 | ≈ $464 | per child | Own plan only |
| Kansas | $3,000 / $6,000 | ≈ $335 | per child | Any state’s plan |
| Louisiana | $2,400 / $4,800 | ≈ $144 | per child | Own plan only |
| Maine | $1,000 | ≈ $68 | per child | Any state’s plan |
| Mississippi | $10,000 / $20,000 | ≈ $800 | per return | Own plan only |
| Montana | $4,600 / $9,200 | ≈ $432 | per taxpayer | Any state’s plan |
| Nebraska | $10,000 | ≈ $455 | per return | Own plan only |
| New Mexico | No limit | ≈ $470 per $10,000 | per taxpayer | Own plan only |
| North Dakota | $5,000 / $10,000 | ≈ $195 | per return | Own plan only |
| Oklahoma | $10,000 / $20,000 | ≈ $900 | per return | Own plan only |
| Oregon | $3,800 | ≈ $380 (credit) | per return | Own plan only |
| Rhode Island | $500 / $1,000 | ≈ $48 | per return | Own plan only |
| South Carolina | No limit | ≈ $521 per $10,000 | per taxpayer | Own plan only |
| Utah | $2,560 / $5,120 | ≈ $228 (credit) | per child | Own plan only |
| Vermont | $2,500 / $5,000 | ≈ $500 (credit) | per child | Own plan only |
| West Virginia | No limit | ≈ $458 per $10,000 | per taxpayer | Own plan only |
“Per child” means each child gets their own limit; “per return” or “per taxpayer” means one limit for the whole family. Deadline is December 31 except Georgia, Indiana, Iowa, Kansas, Mississippi, Oklahoma, Oregon, South Carolina and Wisconsin, which count contributions made up to the April filing deadline.
No state income tax — nothing to deduct
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Your 529 still grows tax-free; there's just no state break on the way in.
Income tax, but no 529 deduction
California, Hawaii, Kentucky, North Carolina. (Sorry.) Your 529 still grows tax-free.
How we checked
Every row was verified in September 2026 against the state's own plan site, revenue department or statute — including the 2026 rate cuts in Arkansas, Georgia, Kentucky, Mississippi, Montana, Nebraska, New York, Oklahoma, South Carolina, Utah and West Virginia, and the 2025 increase in Montana. Spot something out of date? Email hello@happynestegg.com.
See your state on your numbers — free 3-minute check. No card, no SSN, no bank login needed.
Find my childcare moneyQuick answers
Which states give a tax deduction for 529 contributions?
37 states plus DC do — every state with an income tax except California, Hawaii, Kentucky, North Carolina. The amount ranges from a few hundred dollars to unlimited. Nine states have no income tax, so there's nothing to deduct.
Is the 529 deduction federal or state?
State only. There's no federal deduction for 529 contributions — the federal benefit is that the money grows and comes out tax-free for education.
Do I have to use my own state's plan?
Usually yes — most states only reward contributions to their own plan. 9 let you deduct contributions to any state's plan: Arizona, Arkansas, Kansas, Maine, Minnesota, Missouri, Montana, Ohio, Pennsylvania.
What's the deadline for the 529 deduction?
December 31 in most states. 9 count contributions made up to the April filing deadline for the prior year: Georgia, Indiana, Iowa, Kansas, Mississippi, Oklahoma, Oregon, South Carolina, Wisconsin.