VERMONT 529 PLAN · TAX YEAR 2026
Vermont 529 tax credit calculator
Vermont gives a credit of 10% of the first $2,500 contributed per beneficiary, for each spouse on a joint return. A single filer with $75,000 of wages who contributes $5,000 saves $250 of Vermont tax.
State tax saved
- Vermont tax saved
- $250.00
- Credit
- $250.00
- Contributions counted
- $2,500.00
- Credit rate
- 10%
- Vermont tax before
- $2,426.00
- Vermont tax after
- $2,176.00
Vermont tax saved by contribution
With $75,000 of wages and one beneficiary.
| Contribution | Single | Married filing jointly |
|---|---|---|
| $1,000 | $100 | $100 |
| $5,000 | $250 | $500 |
| $10,000 | $250 | $500 |
| $20,000 | $250 | $500 |
Vermont 529 tax questions
Does Vermont have a 529 tax deduction?
Yes. Vermont gives a credit of 10% of the first $2,500 contributed per beneficiary, for each spouse on a joint return.
How much does a $5,000 529 contribution save in Vermont?
$250 of Vermont 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 Vermont's credit?
Only the Vermont Higher Education Investment Plan, opened directly with VSAC.
Does Vermont take back the 529 credit?
Yes. Unless the money pays for college costs or another listed purpose, 10% of a withdrawal is repaid, up to the credits received.
What the calculator leaves out
- The joint limit assumes each spouse contributes, since Vermont's credit is per taxpayer.
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.