529 Plan Limits by State

2026 brings the largest expansion of 529 eligible expenses in a decade. The One Big Beautiful Bill Act (signed July 4, 2025) doubled the K-12 withdrawal cap, added tutoring, homeschooling, vocational credentials, and test fees as qualified expenses, and made several changes permanent. States set aggregate lifetime limits ranging from $235,000 to $621,411 per beneficiary; there is no federal annual contribution cap.

Is there an annual 529 contribution limit?

No — the IRS does not set an annual maximum for 529 contributions. You can contribute as much as you want each year, up to your state’s aggregate lifetime limit. The figure people often cite as a “limit” is the annual gift tax exclusion ($19,000 single / $38,000 married in 2026) — contributions above this threshold require filing IRS Form 709, but rarely trigger actual tax. See the Gift Tax Rules section for superfunding details.

2025–2026 Changes (OBBBA)

State Aggregate Limits Range

Aggregate limits apply per beneficiary across all 529 accounts in that state. Account balances can still grow past the limit through investment returns.

Each state sets its own aggregate contribution limit and tax deduction rules. Deduction amounts are shown as Single / MFJ. “Tax parity” states (✓) allow deductions for contributions to any state’s 529 plan.

Wyoming does not offer a state-sponsored 529 plan. Est. Annual Benefit is calculated at each state’s top marginal income tax rate on the maximum deductible amount; actual savings depend on your filing status and bracket. Deduction limits and tax parity status are subject to change; verify with your state’s plan before contributing.

529 contributions are considered gifts for federal tax purposes. The annual gift tax exclusion and the 5-year “superfunding” election let families front-load accounts without using their lifetime exemption.

Superfunding (5-Year Averaging)

How much can a grandparent contribute to a 529?

Each contributor has their own annual exclusion — grandparents are not sharing the parents’ limit. In 2026, a set of grandparents can each give $19,000 per grandchild without filing Form 709, and can superfund up to $95,000 each ($190,000 combined) in a single year using 5-year averaging. Under FAFSA rules updated for 2024–25, grandparent-owned 529 distributions no longer count as student income.

Multiple Contributors (2026 Example)

529 funds can be withdrawn tax-free for qualified education expenses. The 2025 legislation significantly expanded eligible K-12 and career training costs.

What are the new 529 qualified expenses for 2026?

The OBBBA doubled the K-12 annual cap from $10,000 to $20,000 and added several new federally qualified expense categories effective July 5, 2025. The table below shows what’s new and when each category took effect.

K-12 annual cap: $20,000 per student starting 2026 (was $10,000). The cap applies across all expense categories combined.

Special Provisions

State Conformity — Expanded K-12 Expenses

Federal qualification does not automatically mean state tax-free treatment. Several states have historically rejected or delayed conforming to federal 529 K-12 expansions. A non-conforming state may tax the earnings portion of an expanded K-12 withdrawal or recapture a prior state tax deduction. Verify with your state’s plan or a tax professional before withdrawing for newly eligible expenses.

Conformity status reflects the best available information as of early 2026. States may conform at any time through legislation or administrative guidance. This table is a starting point — always verify with your state’s department of revenue or a qualified tax professional before making withdrawals for newly expanded expenses.