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.
States we've verified (click yours)
| State | Deduct up to (single / joint) | Worth about | Plan |
|---|---|---|---|
| Maryland | $2,500 / $5,000 | ≈ $350 | Own plan only |
| Virginia | $4,000 | ≈ $230 | Own plan only |
| Washington, DC | $4,000 / $8,000 | ≈ $520 | Own plan only |
| Pennsylvania | $19,000 / $38,000 | ≈ $1,167 | Any state’s plan |
| New York | $5,000 / $10,000 | ≈ $550 | Own plan only |
| New Jersey | $10,000 / $20,000 | ≈ $1,100 | Own plan only |
| Illinois | $10,000 / $20,000 | ≈ $990 | Own plan only |
| Ohio | $4,000 | ≈ $110 | Any state’s plan |
| Georgia | $4,000 / $8,000 | ≈ $399 | Own plan only |
| Michigan | $5,000 / $10,000 | ≈ $425 | Own plan only |
| Massachusetts | $1,000 / $2,000 | ≈ $100 | Own plan only |
| Arizona | $2,000 / $4,000 | ≈ $100 | Any state’s plan |
| Indiana | $7,500 | ≈ $1,500 (credit) | Own plan only |
| Missouri | $8,000 / $16,000 | ≈ $752 | Own plan only |
| Wisconsin | $5,280 | ≈ $280 | Own plan only |
| Colorado | $26,200 / $39,200 | ≈ $1,725 | Own plan only |
| Minnesota | $1,500 / $3,000 | ≈ $500 (credit) | Any state’s plan |
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, North Carolina. (Sorry.) Your 529 still grows tax-free.
Everyone else
Most other states offer a deduction or credit too — we just haven't verified the 2026 numbers yet, so the NestEgg calculator counts your state at $0 rather than guess. Want yours next? Email hello@happynestegg.com with your state and we'll bump it up the list.
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?
Most states with an income tax do — over 30. The amount ranges from a few hundred dollars to unlimited. Nine states have no income tax, so there's nothing to deduct, and California has an income tax but no 529 break.
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. A handful (Pennsylvania and Ohio among the ones we've verified) let you deduct contributions to any state's plan.
What's the deadline for the 529 deduction?
December 31 in most states, including all eight we've verified. A few states allow contributions up to the April filing deadline — check yours.