KENTUCKY 529 PLAN · TAX YEAR 2026
Does Kentucky have a 529 tax deduction?
Kentucky does not allow a deduction or credit for 529 contributions in 2026. A single filer with $75,000 of wages who contributes $5,000 saves no Kentucky tax; earnings still grow free of federal tax.
State tax saved
- Kentucky tax saved
- $0.00
Kentucky gives no deduction or credit for 529 contributions.
Kentucky 529 tax questions
Does Kentucky have a 529 tax deduction?
No. Kentucky does not allow a deduction or credit for 529 contributions in 2026.
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.
Is Kentucky adding a 529 deduction?
A 2026 bill, House Bill 27, would have created an exclusion and a credit for Kentucky Saves contributions from 2027. It did not pass.
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.