MARYLAND 529 PLAN · TAX YEAR 2026
Maryland 529 tax deduction calculator
Maryland lets you deduct up to $2,500 per beneficiary of contributions to Maryland's 529 plan, or $5,000 on a joint return. A single filer with $75,000 of wages who contributes $5,000 saves $199 of Maryland and Montgomery County tax.
State tax saved
- Maryland and Montgomery County tax saved
- $198.75
- Deduction
- $2,500.00
- Deduction limit
- $2,500.00
- Maryland and Montgomery County tax before
- $5,389.28
- Maryland and Montgomery County tax after
- $5,190.53
Maryland tax saved by contribution
With $75,000 of wages and one beneficiary. Maryland figures include Montgomery County tax.
| Contribution | Single | Married filing jointly |
|---|---|---|
| $1,000 | $80 | $80 |
| $5,000 | $199 | $398 |
| $10,000 | $199 | $398 |
| $20,000 | $199 | $398 |
Maryland 529 tax questions
Does Maryland have a 529 tax deduction?
Yes. Maryland lets you deduct up to $2,500 per beneficiary of contributions to Maryland's 529 plan, or $5,000 on a joint return.
How much does a $5,000 529 contribution save in Maryland?
$199 of Maryland and Montgomery County tax for a single filer with $75,000 of wages, and $398 for a married couple filing jointly with the same income.
Which 529 plans qualify for Maryland's deduction?
Only Maryland 529: the College Investment Plan and the Prepaid College Trust.
When must Maryland 529 contributions be made?
A contribution must clear by December 31. In a year an account holder receives a State matching contribution, that holder cannot take the subtraction.
What the calculator leaves out
- The joint limit assumes each spouse owns an account for the beneficiary and contributes to it, as Maryland requires.
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.