529 contributions in California
Varies
Are 529 Contributions Tax Deductible in California?
Short answer: No: California doesn't offer a deduction or credit for 529 contributions. No deduction; CA taxes K-12 distributions and imposes a 2.5% state penalty on nonqualified earnings. A 2026 deduction bill failed.
There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs.
Records to keep: Keep receipts, statements, and a note of what each cost was for. Compare itemizing to the 2026 standard deduction ($16,100 single / $32,200 joint) before you claim.
529 contributions in California
Varies
Individuals / Personal Taxes
No: California doesn't offer a deduction or credit for 529 contributions. No deduction; CA taxes K-12 distributions and imposes a 2.5% state penalty on nonqualified earnings. A 2026 deduction bill failed.
Business justification
No: California doesn't offer a deduction or credit for 529 contributions. No deduction; CA taxes K-12 distributions and imposes a 2.5% state penalty on nonqualified earnings. A 2026 deduction bill failed. There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs.
Category
- Personal Tax Deductions