TEXAS 529 PLAN · TAX YEAR 2026
Does Texas have a 529 tax deduction?
Texas has no personal income tax, so a 529 contribution has no state tax to lower. A single filer with $75,000 of wages who contributes $5,000 saves no Texas tax; earnings still grow free of federal tax.
State tax saved
- Texas tax saved
- $0.00
Texas has no personal income tax.
Texas 529 tax questions
Does Texas have a 529 tax deduction?
No. Texas has no personal income tax, so a 529 contribution has no state tax to lower.
Does Texas tax 529 withdrawals?
No. Texas has no personal income tax, so 529 earnings and withdrawals owe no Texas tax.
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 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.