529 Calculator 2026

Where a 529 contribution is worth the most

On a $10,000 joint contribution, the largest state-level savings land in Indiana, District of Columbia, Connecticut and South Carolina. The pattern is not simply "high tax rate wins": a state needs both a high rate and a high cap, which is why California — the highest-taxing state in the country — returns nothing at all, while Indiana hands back up to $1,500 a year on a 2.95% flat rate by using a credit instead of a deduction.

• Indiana$1,500 saved
• District of Columbia$680 saved
• Connecticut$600 saved
• South Carolina$600 saved
• New Jersey$553 saved

What four years of college is projected to cost

Rounded national averages for published total cost of attendance — tuition, fees, room and board — projected at 5% a year. Use the figure that matches the kind of school you are planning for as the goal in the calculator above.

Frequently asked questions

What is a 529 plan?

A 529 is a state-sponsored, tax-advantaged account for education savings. Contributions are made with after-tax dollars, investments grow free of federal tax, and withdrawals for qualified education expenses are federally tax-free. Most states add their own deduction or credit on top.

Which states give a 529 tax deduction?

Most income-tax states do. Nine states levy no income tax at all, so there is nothing to deduct. A handful of income-tax states — California, Hawaii, Kentucky, Maine and North Carolina among them — offer no 529 incentive. Indiana, Oregon, Utah and Vermont give a credit rather than a deduction. The table below shows every jurisdiction.

Can I use another state's 529 plan?

Yes, always — a 529 is open to residents of any state and can pay for school in any state. What varies is whether your home state still gives you the deduction. Arizona, Kansas, Minnesota, Missouri, Montana and Pennsylvania grant 'tax parity' and allow the benefit on any plan; everywhere else the benefit requires the in-state plan.

How much should I put in a 529 each month?

Work backwards from the projected cost rather than picking a round number. Four years at a public in-state university is projected to cost roughly $145,000 for a child starting in 10 years and about $215,000 for a newborn. Covering half of the newborn figure takes roughly $450 a month at a 6% return.

What if my child does not go to college?

You can change the beneficiary to another family member, use up to $10,000 for student loan repayment, spend it on apprenticeship programmes or K-12 tuition, or roll unused funds into the beneficiary's Roth IRA subject to the lifetime cap and account-age rules. A straight non-qualified withdrawal is taxed on earnings plus a 10% federal penalty on earnings.

Is a 529 better than a brokerage account for college?

For money that will be spent on education, almost always. A taxable brokerage account pays tax on dividends every year and capital gains at sale; a 529 pays neither. The trade-off is flexibility — non-qualified withdrawals are penalised — so the usual advice is to fund a 529 up to what you expect to spend on education and keep any surplus elsewhere.