ALABAMA 529 PLAN · TAX YEAR 2026
Alabama 529 tax deduction calculator
Alabama lets you deduct up to $5,000 of contributions to Alabama's 529 plan, or $10,000 on a joint return. A single filer with $75,000 of wages who contributes $5,000 saves $250 of Alabama tax.
State tax saved
- Alabama tax saved
- $250.00
- Deduction
- $5,000.00
- Deduction limit
- $5,000.00
- Alabama tax before
- $3,126.50
- Alabama tax after
- $2,876.50
Alabama tax saved by contribution
With $75,000 of wages and one beneficiary.
| Contribution | Single | Married filing jointly |
|---|---|---|
| $1,000 | $50 | $50 |
| $5,000 | $250 | $250 |
| $10,000 | $250 | $500 |
| $20,000 | $250 | $500 |
Alabama 529 tax questions
Does Alabama have a 529 tax deduction?
Yes. Alabama lets you deduct up to $5,000 of contributions to Alabama's 529 plan, or $10,000 on a joint return.
How much does a $5,000 529 contribution save in Alabama?
$250 of Alabama tax for a single filer with $75,000 of wages, and $250 for a married couple filing jointly with the same income.
Which 529 plans qualify for Alabama's deduction?
Contributions to Alabama's 529 programs, including CollegeCounts, count toward one combined limit.
When must Alabama 529 contributions be made?
By December 31 of the tax year.
What the calculator leaves out
- The joint limit assumes both spouses contribute, as the state requires for the higher amount.
The calculator assumes the contribution goes to a plan that qualifies for the state's benefit: the state's own plan unless the state accepts any 529 plan. Wages are the only income, and they stand in for the income a state tests against its limits. Per-beneficiary limits assume the contribution is split evenly. Federal tax does not change, because 529 contributions aren't federally deductible. Carryforwards of earlier contributions, recapture on nonqualified withdrawals and city or school district taxes are left out.