Unlike with 401(k) plans and other retirement savings accounts, the IRS does not set annual contribution limits for 529 college savings plans. Instead, the states that sponsor individual 529 plans set parameters for the life of the plan. You and your family must know and understand these limits, as surpassing them could result in hefty tax penalties. Just as with any financial move, it’s important to plan ahead for your 529 plan.
A financial advisor can help you create a financial plan for the future.
529 Plan Contribution Limits by State
Contribution limits for 529 plans range from around $235,000 on the low end to more than $550,000 per beneficiary. Although these may seem like high caps, the limits apply to every type of 529 plan account you open per child. The table below illustrates the current 529 plan contribution maximums by state:
529 Plan Contribution Maximums by State
| State | Maximum |
| Alabama | $475,000 |
| Alaska | $550,000 |
| Arizona | $575,000 |
| Arkansas | $500,000 |
| California | $529,000 |
| Colorado | $500,000 |
| Connecticut | $550,000 |
| Delaware | $350,000 |
| District of Columbia | $500,000 |
| Florida | $418,000 |
| Georgia | $235,000 |
| Hawaii | $305,000 |
| Idaho | $500,000 |
| Illinois | $500,000 |
| Indiana | $450,000 |
| Iowa | $420,000 |
| Kansas | $450,000 |
| Kentucky | $450,000 |
| Louisiana | $500,000 |
| Maine | $520,000 |
| Maryland | $500,000 |
| Massachusetts | $500,000 |
| Michigan | $500,000 |
| Minnesota | $425,000 |
| Mississippi | $235,000 |
| Missouri | $550,000 |
| Montana | $396,000 |
| Nebraska | $500,000 |
| Nevada | $500,000 |
| New Hampshire | $553,098 |
| New Jersey | $305,000 |
| New Mexico | $500,000 |
| New York | $520,000 |
| North Carolina | $550,000 |
| North Dakota | $269,000 |
| Ohio | $523,000 |
| Oklahoma | $450,000 |
| Oregon | $400,000 |
| Pennsylvania | $511,757 |
| Rhode Island | $520,000 |
| South Carolina | $540,000 |
| South Dakota | $350,000 |
| Tennessee | $350,000 |
| Texas | $500,000 |
| Utah | $560,000 |
| Vermont | $550,000 |
| Virginia | $550,000 |
| Washington | $500,000 |
| West Virginia | $550,000 |
| Wisconsin | $567,500 |
| Wyoming | $501,000 |
Here’s how the above limits work: Let’s say you open a direct-sold 529 plan and an advisor-sold 529 plan sponsored by New York for your child. The contribution limits in New York are set at $520,000.
This means your combined contributions toward both plans can’t exceed that amount for each child or beneficiary. This maximum applies to the total contributions you make the entire time you invest in 529 plans. It’s not an annual contribution limit, like the kind you’d see with retirement plans. However, your balance can still grow past the contribution limits through investment returns.
529 Plan Tax Benefits by State
Several states that sponsor 529 plans offer tax benefits, allowing you to make tax-deductible contributions or receive tax credits, typically up to certain limits. Some states even permit deductions up to their 529 plan contribution limits.
Seven states – Arizona, Arkansas, Kansas, Minnesota, Missouri, Montana and Pennsylvania – allow tax-deductible contributions to 529 plans, regardless of which state sponsors the plan.
However, not all states provide tax deductions for 529 contributions. Some states exclude these deductions despite having state income taxes, while others simply don’t impose income taxes at all. States that do not offer tax-deductible contributions include Alaska, California, Florida, Hawaii, Kentucky, Nevada, New Hampshire, North Carolina, South Dakota, Tennessee, Texas, Washington and Wyoming.
That said, 37 states and the District of Columbia do offer some form of tax deduction for 529 plan contributions.
529 Plans and the Annual Gift Tax Exclusion
The IRS treats contributions toward 529 college savings plans as gifts for tax purposes. In 2025, however, individuals can gift up to $19,000 (up from $18,000 in 2024) a year to any other individual without needing to report the funds to the IRS for the purposes of a gift tax. This number doubles to $38,000 for married couples.
529 plans do, however, offer a little bit of wiggle room beyond this figure. Individuals can put up to $95,000 into a 529 plan over five years while still having that money excluded from the gift tax. Married couples filing jointly can do the same for up to $190,000. However, they’d need to put a hold on making further contributions for five years.
You can make contributions of up to $95,000, and those funds will be prorated over five years. So you can transfer $50,000 in one year and the IRS will treat it as $10,000 contributed per year over five years. You can then make additional transfers of up to $7,000 in each of those years, and still avoid the gift tax.
529 Contribution Limits and the Lifetime Gift Exemption
If you contribute more than $95,000 over five years, you won’t necessarily owe gift tax. However, any amount exceeding the annual exclusion must be reported on federal tax Form 709.
These contributions count toward your lifetime gift tax exclusion, which is set at $13.99 million for individuals and $27.98 million for couples in 2025. That’s up from $13.61 million for individuals and $27.22 million for couples in 2024. If your total lifetime gifts exceed this threshold, the excess amount may be subject to a 40% gift tax.
Bottom Line
States set large contribution limits for 529 college savings plans. And any U.S. citizen can open an account with a 529 plan sponsored by any state. But limits peak high across the country. So 529 contribution limits shouldn’t be the deciding factor when shopping around for a 529 plan to fund your child’s educational future.
Tips on Making the Most Out of 529 Contribution Limits
- Over five years, 529 plans allow you to contribute up to $90,000 into a 529 plan without triggering a gift tax. But there are rules you must follow. Consider consulting a financial advisor to make the most out of this benefit. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Don’t focus too much on the contribution limits when shopping around for 529 plans. Each state sets them fairly high. Plus, you’re not likely to need to breach the limit to fund necessary qualified expenses.
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