State guide

Virginia 529 tax deduction

Virginia lets you deduct up to $4,000 per Virginia529 account each year on your state return — with unlimited carryforward, and no annual cap at all once you turn 70.

529 deduction: YesTax parity: No — Virginia529 plans only

In-state plan only

Most states that offer a 529 tax break tie it to their own plan, and Virginia is one of them: the deduction applies only to contributions to Virginia529 accounts (such as Invest529), not to other states' 529 plans. If you're a Virginia taxpayer eyeing an out-of-state plan for its investment lineup or fees, weigh that choice against the state tax break you'd be giving up.

The deduction

Virginia allows a deduction of up to $4,000 per Virginia529 account per year — the limit is per account, not per taxpayer, so contributions to multiple accounts can each qualify. Contribute more than $4,000 to an account and the excess carries forward to future years until it has been fully deducted. Two wrinkles worth knowing: only the account's owner of record may claim the deduction, and taxpayers age 70 or older by December 31 may deduct the entire amount contributed that year, with no cap. Confirm the current rules with Virginia Tax 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 · 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 Virginia Tax and your CPA. Virginia's deduction applies to Virginia529 accounts as of recent guidance.

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