MINNESOTA 529 PLAN · TAX YEAR 2026

Minnesota 529 tax credit and deduction calculator

Minnesota lets you choose a credit of 50% of 529 contributions, up to $500 and phased out by income, or a subtraction of up to $1,500 ($3,000 on a joint return). A single filer with $75,000 of wages who contributes $5,000 saves $500 of Minnesota tax through the credit.

State tax saved

Minnesota tax saved: $500.00
Credit: $500.00
Contributions counted: $5,000.00
Credit rate: 50%
Maximum credit: $500.00
Minnesota tax before: $3,576.61
Minnesota tax after: $3,076.61

The credit saves more; the subtraction would save $102.00.

Minnesota tax saved by contribution

With $75,000 of wages and one beneficiary.

Minnesota tax saved by a 529 contribution — tax year 2026
Contribution	Single	Married filing jointly
$1,000	$500	$500
$5,000	$500	$500
$10,000	$500	$500
$20,000	$500	$500

Minnesota 529 tax questions

Does Minnesota have a 529 tax deduction?

Yes. Minnesota lets you choose a credit of 50% of 529 contributions, up to $500 and phased out by income, or a subtraction of up to $1,500 ($3,000 on a joint return).

How much does a $5,000 529 contribution save in Minnesota?

$500 of Minnesota tax for a single filer with $75,000 of wages, and $500 for a married couple filing jointly with the same income.

Which 529 plans qualify for Minnesota's credit or subtraction?

Any state's 529 plan. Minnesota allows the credit or subtraction for contributions to any 529 plan, not only its own.

Do I have to own the 529 account for the Minnesota credit?

No. You can claim the credit or the subtraction for your contributions to any account. Dependents and nonresidents cannot take the credit, and contributions must be made by December 31.

What the calculator leaves out

Credit phase-out start: the 2025 figure, $96,220. Minnesota adjusts it for inflation each year; the 2026 amount was not yet published.
Joint credit second phase-out start: the 2025 figure, $173,200.

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.

Sources

Read the full assumptions and sources.