529 State Tax Deduction Comparison 2026: Which States Give a Break
- taxpayers.net, State-by-State 529 Tax Deduction Guide (2025-2026)
- savingforcollege.com, 529 plan state tax benefits
- Morningstar, Understanding Your Federal and State 529 Tax Benefits (data as of Apr 30, 2026)
All figures are estimates based on publicly available data. Use the linked calculators to model your own situation.
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Frequently Asked Questions
Is there a federal 529 tax deduction?▼
No. There is no federal income tax deduction for 529 contributions. The federal benefit is on the back end: earnings grow federal tax-free and qualified withdrawals (tuition, fees, room, board, books, computers, and up to $10,000/yr K-12 tuition) come out federal tax-free under IRC section 529.
Which states offer no 529 tax benefit?▼
The nine states with no state income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) offer no deduction. A few income-tax states — California, Hawaii, Kentucky and North Carolina — also provide no state 529 deduction or credit as of 2026.
What is 529 tax parity?▼
Tax parity means your state lets you deduct contributions to any U.S. 529 plan, not just your home state plan. Parity states include Arizona, Arkansas, Kansas, Minnesota, Missouri, Montana, Ohio and Pennsylvania, which lets residents choose a low-fee plan and still claim the break.
Do I have to use my own state 529 plan?▼
Only if your state requires it for the deduction (most do). Parity states let you use any state plan. If your state offers no deduction (including no-income-tax states), you can choose purely on fees and investment quality, since the federal tax-free treatment applies to any 529.