INDIANA 529 PLAN · TAX YEAR 2026
Indiana 529 tax credit calculator
Indiana gives a credit of 20% of contributions to Indiana529, up to $1,500 a year ($750 married filing separately). A single filer with $75,000 of wages who contributes $5,000 saves $1,000 of Indiana and Marion County tax.
State tax saved
- Indiana and Marion County tax saved
- $1,000.00
- Credit
- $1,000.00
- Contributions counted
- $5,000.00
- Credit rate
- 20%
- Maximum credit
- $1,500.00
- Indiana and Marion County tax before
- $3,677.80
- Indiana and Marion County tax after
- $2,677.80
Indiana tax saved by contribution
With $75,000 of wages and one beneficiary. Indiana figures include Marion County tax.
| Contribution | Single | Married filing jointly |
|---|---|---|
| $1,000 | $200 | $200 |
| $5,000 | $1,000 | $1,000 |
| $10,000 | $1,500 | $1,500 |
| $20,000 | $1,500 | $1,500 |
Indiana 529 tax questions
Does Indiana have a 529 tax deduction?
Yes. Indiana gives a credit of 20% of contributions to Indiana529, up to $1,500 a year ($750 married filing separately).
How much does a $5,000 529 contribution save in Indiana?
$1,000 of Indiana and Marion County tax for a single filer with $75,000 of wages, and $1,000 for a married couple filing jointly with the same income.
Which 529 plans qualify for Indiana's credit?
Only Indiana529. Other states' plans do not qualify.
Can a contribution made in 2027 count for Indiana's 2026 credit?
Yes. Contributions made by the April 15 filing deadline, before extensions, can be treated as made in the prior year. An unused credit cannot be carried forward or refunded.
What the calculator leaves out
- The credit is limited to Indiana tax including county tax; the law limits it to state income tax alone.
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.