Utah 529 tax credit

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

In-state plan only

Nine "tax-parity" states give the state tax break on contributions to any state's 529 plan. Utah isn't one of them: only contributions to Utah's my529 plan qualify for the state credit. A contribution to another state's plan still grows federal-tax-free, but it earns no Utah tax break.

The credit

For 2026, Utah gives a nonrefundable state income-tax credit equal to 4.45% of my529 contributions, on up to $2,560 of contributions per qualifying beneficiary for single filers or $5,120 for married filing jointly — a maximum credit of $113.92 or $227.84 per beneficiary. The beneficiary must be younger than 19 when named on the account. Credit beyond your tax liability can't be carried forward. Figures change yearly — confirm the current numbers with my529.

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 York · 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 · Idaho · Oregon · Oklahoma · Alabama · Mississippi · Louisiana · Nebraska

General information, not tax advice. 529 credit rules and limits change yearly and this page may not reflect the latest figure — confirm with my529 and your CPA. Utah's tax break applies to the in-state plan only as of recent guidance.