NEW JERSEY 529 PLAN · TAX YEAR 2026
New Jersey 529 tax deduction calculator
New Jersey lets you deduct up to $10,000 of contributions to an NJBEST 529 account if your gross income is $200,000 or less. A single filer with $75,000 of wages who contributes $5,000 saves $276 of New Jersey tax.
State tax saved
- New Jersey tax saved
- $276.25
- Deduction
- $5,000.00
- Deduction limit
- $10,000.00
- New Jersey tax before
- $2,596.00
- New Jersey tax after
- $2,319.75
New Jersey tax saved by contribution
With $75,000 of wages and one beneficiary.
| Contribution | Single | Married filing jointly |
|---|---|---|
| $1,000 | $55 | $35 |
| $5,000 | $276 | $154 |
| $10,000 | $553 | $277 |
| $20,000 | $553 | $277 |
New Jersey 529 tax questions
Does New Jersey have a 529 tax deduction?
Yes. New Jersey lets you deduct up to $10,000 of contributions to an NJBEST 529 account if your gross income is $200,000 or less.
How much does a $5,000 529 contribution save in New Jersey?
$276 of New Jersey tax for a single filer with $75,000 of wages, and $154 for a married couple filing jointly with the same income.
Which 529 plans qualify for New Jersey's deduction?
Only NJBEST, the New Jersey Better Educational Savings Trust.
What if my New Jersey gross income is over the limit?
Then none of the contribution is deductible. The $200,000 limit is a cutoff, not a phase-out.
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.