NORTH CAROLINA 529 PLAN · TAX YEAR 2026
Does North Carolina have a 529 tax deduction?
North Carolina does not allow a deduction for 529 contributions: it ended the deduction for tax years from 2014. A single filer with $75,000 of wages who contributes $5,000 saves no North Carolina tax; earnings still grow free of federal tax.
State tax saved
- North Carolina tax saved
- $0.00
North Carolina gives no deduction or credit for 529 contributions.
North Carolina 529 tax questions
Does North Carolina have a 529 tax deduction?
No. North Carolina does not allow a deduction for 529 contributions: it ended the deduction for tax years from 2014.
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.
What if I took North Carolina's old 529 deduction?
If you deducted NC 529 contributions before 2014 and withdraw them for a purpose other than qualified education, the amount deducted is added back to North Carolina income.
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.