Maine 529 tax deduction in 2026
Maine's deduction is small, open to every plan in the country, and switched off completely one dollar past an income line.
Maine tax saved on this contribution
$68
1.1 % of what you put in comes back on your 2026 return. Capped: only 1,000 dollars of the contribution count.
| Subtracted from state income | $1,000 |
| Your state marginal rate | 6.75 % |
| Cap that applies this year | $1,000 |
| Back per $1,000 contributed | $11 |
Maine: Subtraction for contributions to any state's Section 529 program up to $1,000 per designated beneficiary per tax year (36 M.R.S. 5122(2)(YY), tax years from 2023); the statute does not double the amount for joint returns; contributions must be made by December 31. Read on 2026-10-19. No federal deduction exists for 529 contributions.
| Taxable income | Marginal rate | Tax saved |
|---|---|---|
| $50,000 | 5.80 % | $58 |
| $100,000 | 6.75 % | $68 |
| $200,000 | 7.15 % | $72 |
| $400,000 | 7.15 % | $0 |
Worked out by Radif Partners · How we calculate · Maine rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
Maine lets a taxpayer subtract up to $1,000 of 529 contributions per designated beneficiary each year, and the money can go to NextGen 529, the state's program, or to any other state's 529 plan. The statute does not double the figure for a joint return. The rule that matters most is the income test: the subtraction disappears entirely when federal adjusted gross income (AGI) exceeds $100,000 for a single filer or $200,000 for a joint return or head of household. There is no phase-out, so a dollar over the line costs the whole benefit. A teacher at $64,000 with one child saves $68 at 6.75 %; a couple at $180,000 with three children saves $215, and the same couple just above $200,000 saves $0. Contributions must be made by December 31. Maine does not add the deduction back when money leaves the account.
| Benefit for contributions | Deduction |
|---|---|
| Cap | $1,000 single, $1,000 joint per child (beneficiary) |
| Income limit | $100,000 single, $200,000 joint (federal adjusted gross income) |
| Another state’s plan counts | Yes (tax parity) |
| State plans (official names, no recommendation) | NextGen 529 Client Direct Series, NextGen 529 Client Select Series, NextGen 529 Client Connect Series |
| Account balance limit | $545,000 |
| K-12 withdrawals qualified for state tax | Yes |
| 529 to Roth IRA rollover qualified | Yes |
| Student loan payments qualified | Yes |
| Add-back on a rollover to another state’s plan | No |
The AGI line works like a switch
Under 36 M.R.S. section 5122, the subtraction is not allowed at all once federal AGI is above $100,000 (single or married filing separately) or $200,000 (married filing jointly or head of household). Nothing tapers. The couple with three children who would save $215 at $180,000 save $0 at $201,000. Households close to the line only learn which side they are on when the federal return is finished. The calculator applies the limit to the income you type, so enter your federal AGI rather than taxable income when you are close.
Maine saving near the AGI line
Maine tax saved on this contribution
$215
| Subtracted from state income | $3,000 |
| Your state marginal rate | 7.15 % |
| Cap that applies this year | $3,000 |
| Back per $1,000 contributed | $72 |
$1,000 per child, not per spouse
The cap is set per designated beneficiary per tax year. A family with three children can subtract up to $3,000, but two parents filing jointly for one child still stop at $1,000. Both the statute and the NextGen site read that way; the 2026 Schedule 1S instructions, where the subtraction is claimed, were not read to confirm it. Deposits have to be made by December 31; there is no spring window for the prior year, and the texts read describe no carryforward.
Any plan, and no claw-back
Maine is a parity state: contributions to a plan run by another state count the same as NextGen deposits. Unusually, Maine also provides no add-back when money leaves. Neither section 5122 nor the NextGen program description contains one, so only the earnings part of a non-qualified withdrawal is taxed by Maine. Federally tax-free rollovers to another 529, an ABLE account or a Roth IRA are not taxed by Maine either. A single teacher at $64,000 who moves an account to another plan owes nothing to Maine on the deductions taken.
Maine on a rollover to another plan
Maine tax if the deductions come back
$0
| Amount added back | $0 |
| Your state marginal rate | 6.75 % |
Brackets and the new surcharge
Maine's 2026 schedule, revised May 20, 2026, runs from 5.8 % to 7.15 %, plus a surcharge on taxable income above $1,000,000 single that lifts the top rate to 9.15 %. Households that high are far past the AGI line, so for the 529 subtraction only the lower rates ever apply.
K-12, loans and credentials
FAME, which runs NextGen, states that Maine treats K-12 expenses as qualified for state tax, and its plan page reflects the $20,000 yearly limit from 2026 with the wider list of costs, as well as credential programs and student loans. No Maine Revenue Services guidance on the 2025 federal changes was found. NextGen accepts contributions until a beneficiary's accounts reach $545,000, a limit taken from a program description dated November 8, 2024 that may have been updated since. More on parity across states is on the tax parity page.