529 contributions in Tennessee
Varies
Are 529 Contributions Tax Deductible in Tennessee?
Short answer: No: Tennessee has no state income tax, so there's nothing to deduct 529 contributions from. No wage income tax; the Hall tax on investment income was repealed for tax periods beginning on or after January 1, 2021.
There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs. You can still use any state's plan.
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 Tennessee
Varies
Individuals / Personal Taxes
No: Tennessee has no state income tax, so there's nothing to deduct 529 contributions from. No wage income tax; the Hall tax on investment income was repealed for tax periods beginning on or after January 1, 2021.
Business justification
No: Tennessee has no state income tax, so there's nothing to deduct 529 contributions from. No wage income tax; the Hall tax on investment income was repealed for tax periods beginning on or after January 1, 2021. There's no federal deduction for 529 contributions; growth is tax-free when used for qualified education costs. You can still use any state's plan.
Category
- Personal Tax Deductions