529 deduction: YesTax parity: No — in-state plans only
In-state plans only
Most states that offer a 529 tax break only give it for their own in-state plan, and Michigan follows that rule: the deduction applies to contributions to the state's own Michigan Education Savings Program (MESP). Contributions to another state's 529 get no Michigan deduction. Only nine "tax-parity" states let you deduct contributions to any state's plan, and Michigan is not among them.
The deduction
As of recent guidance, Michigan taxpayers can reduce state taxable income by up to $5,000 per year for single filers ($10,000 for married couples filing jointly) for contributions to a Michigan Education Savings Program account. Limits change yearly — confirm the current figure with the Michigan 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 · Massachusetts · Rhode Island · Vermont · Illinois · Indiana · 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 Michigan plan and your CPA. Michigan limits the deduction to its in-state plans as of recent guidance.
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