The Best 529 College Savings Plans of 2026

If you are saving for college, you have probably heard the golden rule: "Start early."

But the second rule is just as important: "Choose the right plan."

Many parents assume they must use their own state's 529 plan. While that is often a good idea (especially if your state offers a tax deduction), it is not a requirement. You are free to shop around.

If your state's plan has high fees and poor investment options, you can open an account in a different state—like Utah or New York—and use those funds to pay for a college in California, Texas, or anywhere else.

We analyzed the fees, performance, and features of the top plans in the country. Here are the best 529 plans for 2025.

Group 1: The "Free Agents" (Tax Parity States)

The Rule: These 9 states are the most generous in the country. They offer a state tax deduction for contributing to any 529 plan in America.

The Strategy: Do NOT use your home state’s plan unless it is excellent. Since you get the tax break anyway, open a Utah my529 or New York Direct account to get lower fees and better performance.

• Arizona: Deduct up to $4,000 (joint filers) or $2,000 (single).
• Arkansas: Deduct up to $10,000 (joint) or $5,000 (single).
• Kansas: Deduct up to $6,000 (joint) or $3,000 (single).
• Maine: Deduct up to $1,000 per beneficiary.
• Minnesota: Deduct up to $3,000 (joint) or claim a tax credit (up to $500) depending on income.
• Missouri: Deduct up to $16,000 (joint) or $8,000 (single).
• Montana: Deduct up to $6,000 (joint) or $3,000 (single).
• Ohio: Deduct up to $4,000 per beneficiary. (Unlimited carry-forward).
• Pennsylvania: Huge deduction of $38,000 (joint) or $19,000 (single) per beneficiary.

Group 2: The "Go Elsewhere" States (No Tax Benefit)

The Rule: These states either have no state income tax (so a deduction is worthless) OR they simply do not offer a deduction for 529 contributions.

The Strategy: You have zero incentive to stay home. Ignore your state plan entirely. Open a Gold-Rated plan like Utah (my529), New York (Direct Plan), or New Hampshire (Fidelity).

Sub-Group A: States with No Income Tax

• Alaska
• Florida
• Nevada
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming
• New Hampshire (No income tax on wages).

Sub-Group B: States with Income Tax, But No 529 Deduction

• California: (High taxes, but $0 deduction. Go straight to Utah).
• Delaware: (No deduction for new accounts).
• Hawaii
• Kentucky
• North Carolina (Phased out the deduction years ago).

Group 3: The "Home Field Advantage" States

The Rule: These states offer a tax deduction, but only if you use the in-state plan.

The Strategy: Open your in-state plan and contribute exactly enough to max out the tax deduction. If you want to save more than that limit, put the overflow money into a Utah or New York plan.

• Alabama: Deduct up to $10,000 (joint).
• Colorado: Full deduction for all contributions. (One of the best deals in the US).
• Connecticut: Deduct up to $10,000 (joint).
• D.C.: Deduct up to $8,000 (joint).
• Georgia: Deduct up to $8,000 (joint).
• Idaho: Deduct up to $12,000 (joint).
• Illinois: Deduct up to $20,000 (joint). Note: The "Bright Start" plan is Gold-rated by Morningstar.
• Indiana: 20% Tax Credit on up to $7,500 in contributions (Max credit $1,500). This is better than a deduction! Must use Indiana plan.
• Iowa: Deduct up to $5,800 per beneficiary (2025 limit).
• Louisiana: Deduct up to $4,800 per beneficiary.
• Maryland: Deduct up to $5,000 per beneficiary (joint). (T. Rowe Price plan is solid).
• Massachusetts: Deduct up to $2,000 (joint). Small benefit; consider skipping if you dislike Fidelity.
• Michigan: Deduct up to $10,000 (joint).
• Mississippi: Deduct up to $20,000 (joint).
• Nebraska: Deduct up to $10,000 (joint).
• New Jersey: Deduct up to $10,000 for families earning <$200k.
• New Mexico: Full deduction for all contributions.
• New York: Deduct up to $10,000 (joint). Since NY is already a top-tier plan, this is a no-brainer.
• North Dakota: Deduct up to $10,000 (joint).
• Oklahoma: Deduct up to $20,000 (joint).
• Oregon: Tax credit (capped at $360 joint for high earners). The plan has had tech issues; proceed with caution.
• Rhode Island: Deduct up to $1,000 (joint).
• South Carolina: Full deduction for all contributions.
• Utah: 4.55% Tax Credit per beneficiary. The best plan AND a tax credit? Lucky you.
• Vermont: 10% Tax Credit on first $2,500 per beneficiary.
• Virginia: Deduct up to $4,000 per account.
• West Virginia: Full deduction for all contributions.
• Wisconsin: Deduct up to $5,130 per beneficiary (2025 limit).

2025 Bonus: The "Superfunding" Trick

Regardless of which state you choose, 2025 has high contribution limits for those looking to move money fast (e.g., Grandparents).

The Annual Gift Limit (2025): You can give $19,000 per child without filing a gift tax return.

The Superfunding Rule: You can front-load 5 years of gifts at once.

• Single: Contribute $95,000 in one day.
• Married: Contribute $190,000 in one day.
• Note: If you do this, you cannot give that child any more tax-free gifts for the next 5 years.

The "Roth IRA" Safety Net

Worried about over-saving? As of 2024/2025, the Secure Act 2.0 allows you to roll over leftover 529 funds into the beneficiary's Roth IRA.

• Limit: $35,000 lifetime max.
• Rule: The account must be open for 15 years.
• Benefit: This eliminates the fear of "trapping" money if your child gets a scholarship or decides not to go to college.

Summary: Your 3-Step Plan

1. Find your state in the lists above.
2. Calculate the tax savings. If you live in a "Home Field" state, open that plan first.
3. Go National for the rest. If you live in a "No Benefit" or "Tax Parity" state, go straight to Utah (my529) or New York (Direct) for the lowest fees.