Idaho 529 tax deduction

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. Idaho isn't one of them: only contributions to IDeal, the Idaho College Savings Program, qualify for the state deduction. A contribution to another state's plan still grows federal-tax-free, but it earns no Idaho tax break.

The deduction

Idaho taxpayers can deduct up to $6,000 per year (single or head of household) or $12,000 (married filing jointly) for contributions to an IDeal account. Two recapture rules are worth knowing: non-qualified withdrawals get added back to Idaho taxable income, and rolling an IDeal account into another state's plan adds back the deductions claimed in the year of the transfer and the prior year. Limits change yearly — confirm the current figure with IDeal.

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 · Connecticut · 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 · 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 IDeal and your CPA. Idaho's tax break applies to the in-state plan only as of recent guidance.