State by State Overview of Potential 529 Plan State Tax Benefits on Contributions

In addition to this resource, read all applicable footnotes below, read all applicable 529 plan disclosure statements, and contact your tax advisor for additional information and details such as maximum contribution deduction for individual and joint filers, who may qualify for the deduction beyond the account owner, if the state income tax deduction may be subject to recapture and if a state tax benefit may be carryforward. This information is for general educational purposes only and is not to be considered legal or tax advice.

State: Category

– Alabama: In-State Tax Benefit
– Alaska: Tax Neutral State; State does not have a personal income tax
– Arizona: Tax Parity State
– Arkansas: Tax Parity State; State tax deduction for out-of-state 529 plan is less than in-state 529 plan
– California: Tax Neutral State
– Colorado: In-State Tax Benefit
– Connecticut: In-State Tax Benefit
– Delaware: In-State Tax Benefit (Source: 1, 2, 3, 4)
– District of Columbia: In-State Tax Benefit
– Florida: Tax Neutral State; State does not have a personal income tax
– Georgia: In-State Tax Benefit
– Hawaii: Tax Neutral State
– Idaho: In-State Tax Benefit
– Illinois: In-State Tax Benefit
– Indiana: In-State Tax Benefit
– Iowa: In-State Tax Benefit
– Kansas: Tax Parity State
– Kentucky: Tax Neutral State
– Louisiana: In-State Tax Benefit
– Maine: Tax Parity State (Note: Effective January 1, 2023; Source)
– Maryland: In-State Tax Benefit
– Massachusetts: In-State Tax Benefit
– Michigan: In-State Tax Benefit
– Minnesota: Tax Parity State
– Mississippi: In-State Tax Benefit
– Missouri: Tax Parity State
– Montana: Tax Parity State
– Nebraska: In-State Tax Benefit
– Nevada: Tax Neutral State; State does not have a personal income tax
– New Hampshire: Tax Neutral State; State does not have a personal income tax
– New Jersey: In-State Tax Benefit (source: 1, 2)
– New Mexico: In-State Tax Benefit
– New York: In-State Tax Benefit
– North Carolina: Tax Neutral State
– North Dakota: In-State Tax Benefit
– Ohio: Tax Parity State (source: 1, 2)
– Oklahoma: In-State Tax Benefit
– Oregon: In-State Tax Benefit
– Pennsylvania: Tax Parity State
– Rhode Island: In-State Tax Benefit
– South Carolina: In-State Tax Benefit
– South Dakota: Tax Neutral State; State does not have a personal income tax
– Tennessee: Tax Neutral State; State does not have a personal income tax
– Texas: Tax Neutral State; State does not have a personal income tax
– Utah: In-State Tax Benefit
– Vermont: In-State Tax Benefit
– Virginia: In-State Tax Benefit
– Washington: Tax Neutral State; State does not have a personal income tax
– West Virginia: In-State Tax Benefit
– Wisconsin: In-State Tax Benefit
– Wyoming: Tax Neutral State; State does not have a personal income tax

Last Updated: January 12, 2023

Category Explanation:
Tax Parity State: State has a state income tax, and offers a state income tax deduction or credit for contributing to any 529 plan (in-state or out-of-state)
Tax Neutral State: State does not offer a state tax deduction for 529 plan contributions.
In-State Tax Benefit: State has a state tax, and offers a state income tax deduction or credit for contributing only to in-state 529 plans

Sources and Additional Resources:
– 529 Plan Disclosure Statements; State Treasury Departments
– American Funds
– Invesco
– JPMorgan (slide 42)

Disclosure: Investors should consider before investing whether their or their beneficiary’s home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state’s qualified tuition program and should consult their tax advisor, attorney and/or other advisor regarding their specific legal, investment or tax situation. This information is for general educational purposes only and is not to be considered legal or tax advice.