529 deduction: YesTax parity: No — Maryland 529 only
In-state plan only
Most states that offer a 529 tax break tie it to their own plan, and Maryland is one of them: the income subtraction applies only to contributions to Maryland 529 accounts, not to other states' 529 plans. If you're a Maryland taxpayer eyeing an out-of-state plan for its investment lineup or fees, weigh that choice against the state tax break you'd be giving up.
The deduction
Maryland's benefit is an income subtraction of up to $2,500 per beneficiary per year, and it applies per contributor — spouses who each contribute for the same child can each claim their own subtraction. Both the College Investment Plan and the Prepaid College Trust qualify. Contribute more than $2,500 for a beneficiary in one year and the excess can be subtracted over the next 10 years: put in $27,500 up front, for example, and you can subtract $2,500 a year for 11 years. Confirm the current rules with Maryland 529 before filing.
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 · 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 Maryland 529 and your CPA. Maryland's subtraction applies to Maryland 529 accounts as of recent guidance.
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