529 deduction: YesTax parity: No — U.Fund/U.Plan only
In-state plan only
Most states that offer a 529 tax break limit it to their own in-state plan, and Massachusetts is one of them. To claim the Massachusetts deduction, contributions go to the state's own U.Fund 529 plan or U.Plan prepaid tuition program — money put into another state's plan earns no Massachusetts 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
Massachusetts taxpayers can deduct up to $1,000 a year (single filers) or $2,000 (married filing jointly) for contributions to the state's own U.Fund 529 plan or U.Plan prepaid tuition program. The cap is per tax filer, not per beneficiary, and the deduction can be recaptured if money is later withdrawn for a nonqualified purpose — a rollover to another state's plan included. Limits change yearly — confirm the current figure with the Massachusetts 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.
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 · 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 Massachusetts plan and your CPA. Massachusetts limits the deduction to its own U.Fund and U.Plan as of recent guidance.
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