Compare your home-state 529 plan against the best out-of-state options based on tax deduction, expense ratios, and projected balance at college age. Includes all 50 states + DC.
The 529 plan is the most powerful tax-advantaged college savings vehicle for most families: contributions grow tax-free for qualified education expenses (tuition, fees, room and board, computers, K-12 tuition up to $10k/year, apprenticeships, student loan payments up to $10k lifetime). Plus 36 states + DC offer a state income tax deduction or credit for 529 contributions, ranging from no benefit (CA, NJ, HI, KY, NC, MA among others) to massive benefits (NM and WV offer unlimited deductions; IN's 20% credit caps at $1,500/year).
The state-deduction question dominates the 'which 529 should I pick?' decision for families in states with deductions. If you're in New York, the NY 529 gives you up to $10k MFJ deduction at the 10.9% top NY rate = $1,090 of tax savings per year. That's worth way more than any expense-ratio difference vs. an out-of-state plan. Conversely, if you're in California (no state deduction), you should pick purely on expense ratio and fund quality — go straight to Vanguard Nevada or Utah's Vanguard-backed plan.
This calculator covers all 50 states + DC with their current 529 deduction rules, the home-state-only vs. any-state distinction, and the special quirks (Indiana's 20% credit, Colorado's $36,000 MFJ deduction, the OBBBA-related 529-to-Roth-IRA $35,000 lifetime rollover under SECURE 2.0, and the K-12 tuition rule that some states still don't recognize).
Step 1 — Enter beneficiary age and target college start. The calculator projects the contribution growth from now until the year college starts. For a newborn, that's typically 18 years; for a 10-year-old, 8 years.
Step 2 — Enter monthly contribution and home state. The state pulls in your deduction rule and marginal tax rate. Some states (NM, WV) have unlimited deductions; some (NY, CA, IL, PA) have caps; some have no benefit at all.
Step 3 — Pick expected return and review the recommendation. The default 6% real return reflects long-run age-based 529 portfolios. The output: projected balance at age 18, total tax saved over the contribution period, and a 'stay home or go out of state' recommendation based on whether the deduction outweighs any expense-ratio penalty.
Enter your child's age, monthly contribution, and home state. The calculator returns the projected balance, your home-state tax deduction value, and a recommendation between staying home or going out-of-state.
Open the calculator →New Mexico and West Virginia: unlimited deductions (no cap). Indiana: 20% credit on up to $7,500 (cap $1,500). Connecticut: $10,000 MFJ deduction. Colorado: $36,000 MFJ unlimited. New York: $10,000 MFJ. Illinois: $20,000 MFJ. Pennsylvania: $34,000 MFJ. Some states (CA, NJ, NC, MA, KY, HI, DE, ME, MN, NH) offer NO state 529 deduction — those filers should pick a 529 purely on expense ratio.
Mostly no. Most states require you to use that state's specific 529 plan to claim the deduction. Exceptions: Arizona, Kansas, Maine, Missouri, Montana, and Pennsylvania allow 'any state' plans to qualify for the home-state deduction (these are called 'tax-parity' states). Check your specific state's rules — the calculator handles this distinction.
SECURE 2.0 (effective 2024) allows up to $35,000 lifetime rollover from a 529 to the beneficiary's Roth IRA. Requirements: account must be open 15+ years, the rollover annual amount is capped at the IRS Roth contribution limit ($7,000 for 2026), and the beneficiary must have earned income equal to the rollover amount. This solves the 'what if my kid doesn't go to college?' worry — the money becomes their retirement seed money instead of a taxable withdrawal.
No — 529 contributions are NEVER federally tax-deductible. The federal benefit is tax-free growth and tax-free withdrawal for qualified education expenses. The state deduction or credit is the only contribution-side tax benefit, and it only exists in 36 states + DC. Federal gift-tax rules apply: $19,000 per beneficiary per year per donor (2026 annual exclusion), with a 'superfunding' election that lets you front-load 5 years of contributions ($95,000) at once.