A 529 college savings plan can play a vital role in helping make college more affordable. Did you know there are differences in tax treatment when considering which 529 college savings plan to use? Some states may offer tax deduction benefits for contributions into 529 college savings plans. Take a look at the map below for more information!

Explore Your Options

Explore Your Options

STATE

MAXIMUM ANNUAL STATE INCOME TAX BENEFIT

WHO QUALIFIES

STATE TAX RATE

CARRY FORWARD

TAX PARITY: These states offer tax deductions for contributions to any 529 college savings plan, regardless of state
Arizona$2,000i, $4,000jAny taxpayer4.54% 
Kansas$3,000i, $6,000jAny taxpayer, per beneficiary4.60% 
Maine$250 if AGI is $100,000 or lessi, $200,000 or lessjAny taxpayer4.75%10 Years
Missouri$8,000i, $16,000jAccnt owner/spouse only6.00% 
Montana$3,000i, $6,000jAccnt owner/spouse only or custodian/parent6.90% 
Pennsylvania$15,000i, $30,000jAny taxpayer, per beneficiary3.07% 
TAX NEUTRAL: AK, CA, DE, FL, HI, KY, MN, NC, NE, NH, NJ, NV, SD, TN, TX, WA, WY
IN-STATE TAX BENEFIT: These states offer tax deductions on contributions to their in-state 529 plan
Alabama$5,000i, $10,000jAny taxpayer5.00% 
Arkansas$5,000i, $10,000jAny taxpayer6.90% 
ColoradoFull contribution amount, up to taxpayer’s taxable incomeAny taxpayer4.63% 
Connecticut$5,000i, $10,000jAny taxpayer6.99%6 Years
D.C.$4,000i, $8,000jAccnt owner only8.95%5 Years
Georgia$2,000ijAny taxpayer, per beneficiary6.00%5 Years
Idaho$4,000i, $8,000jAny taxpayer7.40% 
Illinois$10,000i, $20,000jAny taxpayer3.75% 
Indiana20% tax credit on contributions up to $5,000*Any taxpayer3.30%Credit
Iowa$3,239i1, $6,478j1Accnt owner only, per beneficiary8.98% 
Louisiana$2,400i, $4,800j*Any taxpayer, per beneficiary6.00%Unlimited
Maryland$2,500i, $5,000jAny taxpayer5.75%10 Years
Massachusetts$1,000i, $2,000j through 2021Any taxpayer5.10% 
Michigan$5,000i, $10,000jAny taxpayer4.25% 
Mississippi$10,000i, $20,000jAny taxpayer5.00% 
Nebraska$10,000ij, $5,000sAccnt owner or parent/guardians of UGMA/UTMA accounts6.84% 
New Mexico Full contribution amountAny taxpayer4.90% 
New York$5,000i, $10,000jAccnt owner only8.82% 
North Dakota$5,000i, $10,000jAny taxpayer2.90% 
Ohio$2,000ijAny taxpayer, per beneficiary5.00%Unlimited
Oklahoma$10,000i, $20,000jAny taxpayer5.00%5 Years
Oregon$2,330i1, $4,660j1Any taxpayer9.90%4 Years
Rhode Island$500i, $1,000jAccnt owner only5.99%Unlimited
South CarolinaFull contribution amountAny taxpayer7.00% 
Utah5% tax credit on contributions up to $1,920i1, 3,840j1*Accnt owner only, per beneficiary*5.00%Credit
Vermont10% tax credit on contributions up to $2,500i, $5,000j*Accnt owner only, per beneficiary8.95%Credit
Virginia$4,000ij; Fully deductible if age 70 or olderAccnt owner only*5.75%Unlimited
West VirginiaFull contribution amountAny taxpayer6.50% 
Wisconsin$3,100ij1*Any taxpayer, per beneficiary7.65%Unlimited

i. Filing individually

j. Filing jointly

s. If married filing separately

1. Adjusted annually for inflation *Talk with your 529 plan advisor for full details on restrictions, stipulations, and or requirements.

Source: www.savingforcollege.com, 2017. Carry forward some states allow taxpayers who contribute above the maximum annual tax deduction to carry forward excess contributions to future state income tax returns. State tax savings reflect full deduction of $10,000 over the carry forward period. State tax rate assumes joint tax filers in the maximum state tax bracket for 2017.

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