HAWAII 529 PLAN · TAX YEAR 2026
Does Hawaii have a 529 tax deduction?
Hawaii does not allow a deduction for 529 contributions: its 2025 return instructions list no subtraction for them. A single filer with $75,000 of wages who contributes $5,000 saves no Hawaii tax; earnings still grow free of federal tax.
State tax saved
- Hawaii tax saved
- $0.00
Hawaii gives no deduction or credit for 529 contributions.
Hawaii 529 tax questions
Does Hawaii have a 529 tax deduction?
No. Hawaii does not allow a deduction for 529 contributions: its 2025 return instructions list no subtraction for them.
Is a 529 contribution deductible on the federal return?
No. Contributions to a 529 plan aren't deductible on the federal return. Earnings grow tax-free, and withdrawals for qualified education expenses aren't taxed; part of the earnings is taxed when withdrawals exceed those expenses.
Does Hawaii tax 529 withdrawals for K-12 tuition?
Yes. Hawaii did not adopt the federal rule that counts elementary and secondary school tuition as a qualified expense, so the taxable part of such a withdrawal is added to Hawaii income. A 2025 bill, HB 707, proposed a deduction for contributions.
What the calculator leaves out
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.