Florida 529 plan: no state income tax, what counts in 2026
Florida has no income tax to cut, and its Prepaid College Board sells a prepaid college plan next to an investment account.
In the 529 at age 18
$76,192
$5,387 more than the same money in a taxable account, plus $0 of Florida tax saved along the way.
| You put in | $43,200 |
| Growth, tax-free for school costs | $32,992 |
| Taxable account after tax | $70,805 |
| Florida tax saved, 18 years | $0 |
Taxable account: dividends taxed every year and the remaining gain taxed at sale, at the 2026 federal capital gains rate for this income, NIIT where it applies, and your state marginal rate.
| Year | Child’s age | Put in | 529 balance |
|---|---|---|---|
| 3 | 3 | $7,200 | $7,849 |
| 6 | 6 | $14,400 | $17,196 |
| 9 | 9 | $21,600 | $28,330 |
| 12 | 12 | $28,800 | $41,590 |
| 15 | 15 | $36,000 | $57,382 |
| 18 | 18 | $43,200 | $76,192 |
Worked out by Radif Partners · How we calculate · Florida rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
Florida's constitution bars a state personal income tax, so a 529 contribution earns no Florida deduction or credit and no withdrawal is ever taxed by the state. The Florida Prepaid College Board runs two kinds of plan: the Florida Prepaid College Plan (prepaid) and the Florida Investment 529 Plan (formerly Florida 529 Savings Plan), which carried the name Florida 529 Savings Plan until 2025. Both sit under one ceiling: the Board caps the total for the same student at $500,000 across all its plans. With no state tax in play, federal rules decide what is qualified, K-12 costs up to $20,000 a year included, and the gain is growth that is never taxed if spent on school. A family putting $200 a month into the investment plan from birth would have about $76,192 at eighteen at a 6 % assumed return. If the family later moves to a state with an income tax, that state's rules decide what new contributions are worth.
| State income tax on wages | None |
|---|---|
| Benefit for contributions | None (no income tax) |
| State plans (official names, no recommendation) | Florida Prepaid College Plan (prepaid), Florida Investment 529 Plan (formerly Florida 529 Savings Plan) |
| Account balance limit | $500,000 |
Two kinds of plan under one board
An investment plan rises and falls with the funds chosen. Florida keeps a prepaid plan beside one. The Florida Prepaid College Plan (prepaid) and the Florida Investment 529 Plan (formerly Florida 529 Savings Plan) are both managed by the Florida Prepaid College Board, and its help center explains that the investment plan took its current name in 2025. The terms of a prepaid contract, what it covers and how it pays out, are set in the Board's own plan documents and are not summarized here.
What the two share is a limit. The Board FAQ sets $500,000 as the most that can be held for one student, adding together every Florida plan in that student's name. A family that holds a prepaid contract and an investment account for the same child counts both toward it.
Why parity and caps do not come up
Elsewhere, the first questions about a 529 are how much the state lets you deduct and whether another state's plan counts. In Florida neither exists. Article VII, section 5 of the state constitution keeps a personal income tax off the books, so there is no return to deduct from and no deduction to recapture later. A plan from another state carries the same Florida result as the Florida Investment 529 Plan (formerly Florida 529 Savings Plan).
Where the value comes from
The federal side does the work. Earnings in the account are not taxed when spent on qualified costs, which a taxable brokerage account cannot match. The calculator above shows that gap for a newborn at $200 a month: $76,192 at eighteen and $5,387 ahead of the taxable account. A late start still counts. A twelve-year-old with $25,000 already saved and $900 added each month would reach about $112,846 by eighteen at the same assumption.
Florida account started at twelve
In the 529 at age 18
$112,846
| You put in | $89,800 |
| Growth, tax-free for school costs | $23,046 |
| Taxable account after tax | $109,278 |
| Florida tax saved, 6 years | $0 |
Lump sums from grandparents
Without a state cap to respect, the only brake on a large gift is federal gift tax. One grandparent can elect to spread a gift over five years: $95,000 per grandchild fits without touching lifetime exemption in 2026, so a $95,000 gift would be counted at $19,000 a year.
Five-year gift into a Florida plan
Fits in the five-year election
$95,000
| Yearly exclusion, 2026 | $19,000 |
| Room over five years | $95,000 |
| Counted per year | $19,000 |
Leaving Florida with an account
A Florida account keeps its federal treatment wherever the family goes, but the new home state decides what future contributions are worth. Next door, Alabama counts only its own plans: a couple there at $110,000 adding $5,000 a year to the Florida Investment 529 Plan (formerly Florida 529 Savings Plan) would get $0, against $250 in CollegeCounts. Arizona takes any state's plan, so the same couple with two children would save $125. Because Florida never gave a deduction, no state can recapture one on money saved before the move. The out-of-state plan guide covers the rest.