529 deduction: YesTax parity: No — Future Scholar only
In-state plan only
Most states that offer a 529 tax break tie it to their own plan, and South Carolina is one of them: the deduction applies only to contributions to the state's Future Scholar 529 plan, not to other states' 529 plans. With an uncapped deduction on the table, an out-of-state plan has to clear a high bar on investments and fees before it's worth passing that up.
The deduction
South Carolina deducts 100% of Future Scholar contributions — there is no annual dollar cap. The deduction is available whether you own the account or are making a gift contribution to someone else's Future Scholar account, which makes it unusually friendly to grandparents and other relatives who chip in. South Carolina even allows contributions made up to the tax-filing deadline to be deducted on the prior year's return. Confirm the current rules with the Future Scholar plan 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 · Maryland · District of Columbia · West Virginia · Georgia · 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 Future Scholar plan and your CPA. South Carolina's deduction applies to the Future Scholar plan as of recent guidance.
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