Connecticut 529 tax deduction

529 deduction: YesTax parity: No — CHET only

In-state plan only

Most states that offer a 529 tax break limit it to their own in-state plan, and Connecticut is one of them. To claim the Connecticut deduction, contributions go to CHET, the Connecticut Higher Education Trust — money put into another state's plan earns no Connecticut tax break. Nine "tax-parity" states work the other way and give the break for any state's plan; the list is below.

The deduction

Connecticut taxpayers can deduct up to $5,000 a year on a single return or $10,000 on a joint return for contributions to CHET, the state's own 529 plan. Contribute more than the cap and the excess can be carried forward and deducted over the five following taxable years. Limits change yearly — confirm the current figure with the Connecticut plan.

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.

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 · Massachusetts · Rhode Island · Vermont · Illinois · Indiana · Michigan · Wisconsin · Iowa · North Dakota · Virginia · Maryland · District of Columbia · West Virginia · Georgia · South Carolina · Colorado · New Mexico · Utah · Idaho · Oregon · Oklahoma · Alabama · Mississippi · Louisiana · Nebraska

General information, not tax advice. 529 deduction rules and limits change yearly and this page may not reflect the latest figure — confirm with the Connecticut plan and your CPA. Connecticut limits the deduction to CHET as of recent guidance.