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State guide

Colorado 529 tax deduction

Colorado offers one of the larger 529 deductions in the country — up to $26,200 (single) or $39,200 (joint) per beneficiary in 2026 — but only for the in-state CollegeInvest plan.

529 deduction: YesTax parity: No — in-state plan only

In-state plan only

Nine "tax-parity" states give the state tax break on contributions to any state's 529 plan. Colorado isn't one of them: only contributions to a CollegeInvest plan qualify for the state deduction. A contribution to another state's plan still grows federal-tax-free, but it earns no Colorado tax break.

The deduction

For 2026, Colorado taxpayers can subtract up to $26,200 (single filers) or $39,200 (married filing jointly) per taxpayer, per beneficiary, for contributions to a CollegeInvest 529 plan — up from $25,400 / $38,100 in 2025. The cap adjusts each year with the average cost of tuition and room and board at Colorado's public colleges. Non-qualified withdrawals can trigger recapture of deductions already claimed, so plan withdrawals carefully. Limits change yearly — confirm the current figure with CollegeInvest.

How it fits with the gift-tax rules

A 529 contribution is also a gift for federal purposes, so it counts toward the $19,000 annual exclusion (2026). The 5-year election ("superfunding") lets you front-load up to $95,000 per donor per child without using any lifetime exemption.

See how much you can front-load with the 529 Superfunding Calculator, and keep family contributions within the exclusion with the Gift Tax Calculator.

529 deductions & credits in other states

Tax-parity states let you deduct contributions to any state's 529 plan; the rest limit the benefit to their own plan.

Tax parity: Arizona · Arkansas · Kansas · Maine · Minnesota · Missouri · Montana · Ohio · Pennsylvania
Own-plan deduction or credit: New York · New Jersey · Connecticut · Massachusetts · Rhode Island · Vermont · Illinois · Indiana · Michigan · Wisconsin · Iowa · North Dakota · Virginia · Maryland · District of Columbia · West Virginia · Georgia · South Carolina · New Mexico · Utah · Idaho · Oregon · Oklahoma · Alabama · Mississippi · Louisiana · Nebraska

Keep reading

529 tax deduction by state (all 50)529 vs. custodial: the complete guide529 Superfunding Calculator

General information, not tax advice. 529 deduction rules and limits change yearly and this page may not reflect the latest figure — confirm with CollegeInvest and your CPA. Colorado's tax break applies to the in-state plan only as of recent guidance.

Coordinate the whole family's 529 giving.

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