529 Plan Tax Calculator
529 plans offer tax-free growth on education savings. Most states also offer a state income tax deduction or credit for contributions — but there is no federal deduction. This calculator shows your state tax benefit and projects account growth over time.
Your 529 Contribution
Annual Tax Benefit
Projected Account Value After 18 Years
| Year | Contributions | Growth | Account Value | Cumulative Tax Saved |
|---|---|---|---|---|
| 1 | $5,000 | $350 | $5,350 | $270 |
| 2 | $10,000 | $1,075 | $11,075 | $540 |
| 3 | $15,000 | $2,200 | $17,200 | $810 |
| 4 | $20,000 | $3,754 | $23,754 | $1,080 |
| 5 | $25,000 | $5,766 | $30,766 | $1,350 |
| 10 | $50,000 | $23,918 | $73,918 | $2,700 |
| 15 | $75,000 | $59,440 | $134,440 | $4,050 |
| 18 | $90,000 | $91,895 | $181,895 | $4,860 |
Assumes 7% nominal annual return with contributions at the start of each year. Actual returns will vary.
529 Deduction Limits by State (2026)
| State | Single | MFJ | Type |
|---|---|---|---|
| Colorado | Unlimited | Unlimited | Deduction |
| South Carolina | Unlimited | Unlimited | Deduction |
| Pennsylvania | $15,000 | $30,000 | Deduction |
| New York | $5,000 | $10,000 | Deduction |
| Illinois | $10,000 | $20,000 | Deduction |
| Virginia | $4,000 | $8,000 | Deduction |
| Missouri | $8,000 | $16,000 | Deduction |
| Iowa | $3,387 | $6,774 | Deduction |
| Ohio | $4,000 | $4,000 | Deduction |
| Wisconsin | $3,000 | $6,000 | Deduction |
| Indiana | $7,500 | $7,500 | 20% Credit |
| Vermont | $2,500 | $5,000 | 10% Credit |
| Oregon | $2,375 | $4,750 | Deduction |
| Nebraska | $10,000 | $10,000 | Deduction |
| Georgia | $6,000 | $12,000 | Deduction |
States not listed either have no income tax or do not offer a 529 deduction. Some states require contributions to the in-state plan to qualify for the deduction.
529 Plan Tax Benefits Explained
No federal deduction. Unlike 401(k) or IRA contributions, 529 contributions are made with after-tax dollars at the federal level. The federal benefit is entirely in the tax-free growth and withdrawals for qualified education expenses.
State deductions vary widely. Over 30 states offer a deduction or credit for 529 contributions. Limits range from $2,000 per year (Mississippi, Montana) to unlimited (Colorado, South Carolina). Some states only give the benefit for contributions to the in-state plan.
Qualified expenses include tuition, fees, books, room and board (up to the cost of attendance), computers, and internet access. Since 2018, up to $10,000 per year can be used for K-12 tuition. SECURE 2.0 added up to $10,000 for student loan repayment.
SECURE 2.0 Roth rollover. Starting in 2024, unused 529 funds can be rolled into a Roth IRA for the beneficiary, subject to annual Roth IRA contribution limits and a $35,000 lifetime cap. The 529 must have been open for at least 15 years.
Superfunding. You can contribute up to 5 years of the annual gift exclusion ($19,000 in 2025) in a single year — $95,000 per person ($190,000 for a married couple) — without triggering gift tax. This accelerates tax-free compounding.