What your state gives you for saving in a 529, if anything
The federal benefit of a 529 is the same everywhere: growth is untaxed and qualified withdrawals are tax-free. The state layer is where the map fractures. 34 states let you deduct contributions, 4 give a credit instead, and 13 give nothing at all. Among the states with a published dollar cap, the annual limit for a single filer runs from $500 to $26,200.
What the state layer actually looks like
- A deduction and a credit are not comparable at face value. A credit cuts tax owed dollar for dollar. A deduction cuts taxable income, so it is worth the cap multiplied by your marginal state rate. A $1,000 credit beats a $10,000 deduction in most states, which is why the chart below shows deduction caps and credit states separately rather than ranking them together.
- Caps vary by about 52 times. Colorado allows $26,200 a year for a single filer; Rhode Island allows $500. 3 states place no dollar cap at all.
- Loyalty to the home plan is usually required. Only 7 states offer tax parity, allowing the benefit on any state's 529. Everywhere else the deduction is the price of staying with the in-state plan, even if another state's plan has lower fees.
- No state benefit does not mean no benefit. In the 13 states with nothing on offer, the federal treatment still applies in full, and savers there are free to choose any plan in the country on fees and investment quality alone.
Annual deduction cap, single filer
The 31 states that publish a dollar cap on the 529 deduction. States offering a credit, an uncapped deduction, or no benefit are not on this chart, because their benefit is not a dollar cap and plotting them as zero would misrepresent them. They are listed underneath.
View as a table
| Row | Cap, single filer | Joint cap and parity |
|---|---|---|
| Colorado | $26,200 | joint $39,200 |
| Pennsylvania | $19,000 | joint $38,000, any plan |
| Illinois | $10,000 | joint $20,000 |
| Mississippi | $10,000 | joint $20,000 |
| Nebraska | $10,000 | joint $10,000 |
| New Jersey | $10,000 | joint $10,000 |
| Oklahoma | $10,000 | joint $20,000 |
| Missouri | $8,000 | joint $16,000, any plan |
| Iowa | $6,100 | joint $6,100 |
| Idaho | $6,000 | joint $12,000 |
| Wisconsin | $5,130 | joint $5,130 |
| Alabama | $5,000 | joint $10,000 |
| Arkansas | $5,000 | joint $10,000 |
| Connecticut | $5,000 | joint $10,000 |
| Michigan | $5,000 | joint $10,000 |
| North Dakota | $5,000 | joint $10,000 |
| New York | $5,000 | joint $10,000 |
| Montana | $4,600 | joint $9,200, any plan |
| District of Columbia | $4,000 | joint $8,000 |
| Georgia | $4,000 | joint $8,000 |
| Ohio | $4,000 | joint $4,000 |
| Virginia | $4,000 | joint $4,000 |
| Kansas | $3,000 | joint $6,000, any plan |
| Maryland | $2,500 | joint $5,000 |
| Louisiana | $2,400 | joint $4,800 |
| Arizona | $2,000 | joint $4,000, any plan |
| Minnesota | $1,500 | joint $3,000, any plan |
| Delaware | $1,000 | joint $2,000 |
| Massachusetts | $1,000 | joint $2,000 |
| Maine | $1,000 | joint $1,000, any plan |
| Rhode Island | $500 | joint $1,000 |
Uncapped deduction (3): New Mexico, South Carolina, West Virginia. These states allow the full contribution to be deducted, with no dollar limit to plot.
Credit instead of a deduction (4): Indiana (up to $1,500), Oregon (up to $190), Utah (up to $112), Vermont (up to $250). A credit reduces tax owed directly, so it is not comparable to a deduction cap on the same scale.
No state benefit (13): Alaska, California, Florida, Hawaii, Kentucky, Nevada, New Hampshire, North Carolina, South Dakota, Tennessee, Texas, Washington, Wyoming. Several of these have no state income tax, so there is nothing for a deduction to reduce.
Method and limits
- Caps, not savings. The chart shows the maximum contribution that can be deducted, not the tax saved. Converting one to the other needs your state marginal rate, which depends on your income.
- Single-filer caps. Many states double the limit for married couples filing jointly; the joint figure is in the table where published.
- Carry-forward is not shown. Some states let an excess contribution be deducted over later years, which raises the effective benefit for a large one-off gift.
- Only capped-deduction states are plotted. Credit, uncapped and no-benefit states are named rather than drawn as zero, which would misrepresent both the uncapped states (the most generous) and the credit states.
- Rules change. Figures verified 2026-07-11; caps are adjusted by several states annually.
Sources and reuse
- Benefit type, caps and parity: each state's own revenue authority, carried per state in the underlying dataset. Verified 2026-07-11.
- Federal treatment: IRS Topic no. 313, qualified tuition programs.
- More research: all CalculatorHub research.
Our compilation and analysis may be quoted freely with credit to CalculatorHub and a link to this page. Reviewed by the CalculatorHub team, edited by James Graham, 9 August 2026. See our methodology. General information, not tax or investment advice.
Frequently asked questions
Which states give a tax break for 529 contributions?
34 states allow a state income tax deduction and 4 give a tax credit instead. 13 give no state benefit for contributing, either because they have no state income tax or because they simply do not offer one. The federal treatment (tax-free growth and tax-free qualified withdrawals) applies everywhere regardless.
How much can I deduct?
Among the 31 states publishing a dollar cap, the annual limit for a single filer runs from $500 in Rhode Island to $26,200 in Colorado, with a median of $5,000. 3 more states (New Mexico, South Carolina, West Virginia) allow a full deduction with no dollar cap. Many states double the cap for a married couple filing jointly.
Do I have to use my own state's 529 plan?
Usually yes, to get the state break. Most states only give the deduction or credit for contributions to their own plan. 7 states offer what is called tax parity, meaning they allow the benefit for contributions to any state's 529. Everywhere else, chasing a better plan in another state means giving up the deduction at home.
Is a deduction or a credit worth more?
A credit reduces tax owed dollar for dollar, so a $500 credit saves $500. A deduction reduces taxable income, so a $500 deduction saves $500 multiplied by your state marginal rate, often well under $50. A modest-looking credit can therefore beat a large-looking deduction, which is why comparing the headline numbers directly is misleading.
Is the federal tax benefit the same everywhere?
Yes. Investment growth inside a 529 is not taxed, and withdrawals for qualified education expenses are federally tax-free in every state. The state layer on this page is an extra benefit on top, not the main one, so living in a no-benefit state does not make a 529 pointless.