Texas 529 Calculator 2026
Texas has no state income tax, so there is no deduction to claim and nothing lost by using an out-of-state plan. Texas also runs a separate prepaid tuition programme, the Texas Tuition Promise Fund.
Project the balance from your contributions below, then read the Texas tax table to see what the state side of the deal is actually worth in dollars — computed from the same 2026 Texas schedule used by the Texas paycheck calculator.
- Total contributions
- $59,000
- Tax-advantaged growth
- $40,516
- Projected balance
- $99,516
- Estimated cost
- $120,000
- Shortfall
- $20,484
On track to $99,516 — about $20,484 short of a $120,000 goal. Raising the monthly contribution closes the gap.
Use Left and Right Arrow, Home, or End to inspect data points.
- Growth uses a steady monthly compounding rate; age-based 529 portfolios de-risk over time and will not track it exactly.
- State tax savings are computed from the 2026 state schedule in this site's tax engine, applied to the assumed household income shown with each table.
- State 529 deduction and credit limits are the commonly published 2026 figures; several states index them annually — confirm yours with the plan.
- College cost projections are rounded national published averages inflated at a fixed rate, not a quote from any institution.
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What a 529 contribution saves you in Texas tax
Texas does not reduce state income tax for 529 contributions, so this table is short: the state-side saving is zero at every contribution level. Everything a 529 does for a Texas family is federal — untaxed growth and tax-free qualified withdrawals.
| Annual contribution | Single, $100,000 | Joint, $150,000 | Effective discount |
|---|---|---|---|
| $2,000 | — | — | 0% |
| $5,000 | — | — | 0% |
| $10,000 | — | — | 0% |
| $15,000 | — | — | 0% |
Assumes Texas's 2026 income-tax rules. No state 529 incentive is available.
What monthly 529 contributions grow to
Projected balances at a 6% annual return, contributions only, no starting balance. Age-based 529 portfolios shift toward bonds as college approaches, so a real plan started at birth typically averages a little under this early and a little over it later.
| Monthly contribution | After 10 years | After 15 years | After 18 years | Of which growth |
|---|---|---|---|---|
| $100/mo | $16,388 | $29,082 | $38,735 | $17,135 |
| $250/mo | $40,970 | $72,705 | $96,838 | $42,838 |
| $500/mo | $81,940 | $145,409 | $193,677 | $85,677 |
| $750/mo | $122,910 | $218,114 | $290,515 | $128,515 |
| $1,000/mo | $163,879 | $290,819 | $387,353 | $171,353 |
What four years of college is projected to cost
Rounded national averages for published total cost of attendance — tuition, fees, room and board — projected forward at 5% a year across four consecutive academic years. Published price is not net price: most families pay less after grant aid, and an individual school can sit far either side of the average.
| Institution type | Four years today | Starting in 10 years | Starting in 18 years |
|---|---|---|---|
| Public four-year, in-state | $120,000 | $210,622 | $311,185 |
| Public four-year, out-of-state | $196,000 | $344,016 | $508,269 |
| Private nonprofit four-year | $252,000 | $442,307 | $653,488 |
How the Texas 529 benefit actually works
Texas gives no state-level incentive, so the 529 case here rests entirely on federal treatment: contributions go in after tax, growth is never taxed, and qualified withdrawals come out tax-free. Over 18 years that alone is usually worth more than any single-year state deduction.
With no home-state benefit to protect, compare Texas College Savings Plan against the largest national direct-sold plans on expense ratio, fund choice and minimum contribution. A 0.15% annual fee difference on an 18-year plan is worth several thousand dollars.
Contribution limits are set by the plan, not by the IRS — most allow a lifetime balance of $400,000 or more per beneficiary. What is capped federally is the gift-tax treatment: contributions count as completed gifts, and a five-year election lets you front-load five years of the annual exclusion into a single year without using lifetime exemption.
Frequently asked questions
- Does Texas offer a 529 tax deduction?
- No. no state income tax. That does not make a 529 a bad idea in Texas — the federal benefit (tax-free growth and tax-free qualified withdrawals) is identical everywhere — but it does mean you should pick a plan on fees and fund quality rather than loyalty to Texas College Savings Plan.
- What is a $5,000 529 contribution worth in Texas?
- Nothing at the state level: Texas does not reduce state tax for 529 contributions. The federal benefit still applies — every dollar of growth inside the account is untaxed, and qualified withdrawals are tax-free.
- Which 529 plan should a Texas resident use?
- There is no state tax reason to prefer Texas College Savings Plan, so compare expense ratios and fund menus across the largest national plans as well.
- What happens if the money is not used for college?
- Non-qualified withdrawals are taxed on the earnings portion and carry a 10% federal penalty on those earnings, and the state may reclaim deductions previously taken. There are penalty-free escape routes: change the beneficiary to another family member, use up to $10,000 for student-loan repayment, or roll unused funds into the beneficiary's Roth IRA subject to the lifetime cap and account-age rules.
- Can 529 money be used for more than tuition?
- Yes. Qualified expenses include tuition, mandatory fees, books, required supplies and equipment, computers used for study, and room and board for students enrolled at least half time. Up to $10,000 a year can also be used for K-12 tuition, and up to $10,000 lifetime for student loan repayment.
- Does a 529 hurt financial aid?
- Less than most families expect. A parent-owned 529 is a parental asset on the FAFSA and is assessed at a maximum of 5.64% — so $50,000 saved reduces aid eligibility by at most about $2,820. Since the FAFSA Simplification Act, distributions from a grandparent-owned 529 no longer count as student income at all.