ILLINOIS 529 PLAN · TAX YEAR 2026
Illinois 529 tax deduction calculator
Illinois lets you deduct up to $10,000 of contributions to Illinois's 529 plan, or $20,000 on a joint return. A single filer with $75,000 of wages who contributes $5,000 saves $248 of Illinois tax.
State tax saved
- Illinois tax saved
- $247.50
- Deduction
- $5,000.00
- Deduction limit
- $10,000.00
- Illinois tax before
- $3,567.71
- Illinois tax after
- $3,320.21
Illinois tax saved by contribution
With $75,000 of wages and one beneficiary.
| Contribution | Single | Married filing jointly |
|---|---|---|
| $1,000 | $50 | $50 |
| $5,000 | $248 | $248 |
| $10,000 | $495 | $495 |
| $20,000 | $495 | $990 |
Illinois 529 tax questions
Does Illinois have a 529 tax deduction?
Yes. Illinois lets you deduct up to $10,000 of contributions to Illinois's 529 plan, or $20,000 on a joint return.
How much does a $5,000 529 contribution save in Illinois?
$248 of Illinois tax for a single filer with $75,000 of wages, and $248 for a married couple filing jointly with the same income.
Which 529 plans qualify for Illinois's deduction?
Only Bright Start, Bright Directions and College Illinois. Contributions to other states' 529 plans may not be deducted.
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.
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.