New York 529 tax deduction

529 deduction: YesTax parity: No — in-state plan only

In-state plan only

Most states that offer a 529 tax break limit it to their own in-state plan, and New York is one of them. To claim the New York deduction, contributions go to New York's own 529 program — money put into another state's plan earns no New York 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

New York taxpayers can deduct up to $5,000 a year (single filers) or $10,000 (married filing jointly) for contributions to New York's own 529 program. The deduction can be recaptured in certain situations — among them rollovers to another state's plan, nonqualified withdrawals, and withdrawals used for elementary or secondary school tuition. Limits change yearly — confirm the current figure with the New York 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 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 · 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 New York plan and your CPA. New York limits the deduction to its own plan as of recent guidance.