Ohio 529 tax deduction in 2026
A cap that multiplies with each child, a carryforward that never expires, and since 2023 any state’s plan qualifies.
Ohio tax saved on this contribution
$330
2.8 % of what you put in comes back on your 2025 return.
| Subtracted from state income | $12,000 |
| Your state marginal rate | 2.75 % |
| Cap that applies this year | $12,000 |
| Back per $1,000 contributed | $28 |
Ohio: Deduction of contributions to any state's 529 savings plan (since tax year 2023) up to $4,000 per beneficiary per year, with unlimited carryforward; married taxpayers share one $4,000 limit per beneficiary whether filing jointly or separately. Read on 2026-10-19. No federal deduction exists for 529 contributions.
| Taxable income | Marginal rate | Tax saved |
|---|---|---|
| $50,000 | 2.75 % | $330 |
| $100,000 | 2.75 % | $330 |
| $200,000 | 2.75 % | $330 |
| $400,000 | 2.75 % | $330 |
Worked out by Radif Partners · How we calculate · Ohio rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
Ohio taxpayers can deduct up to $4,000 a year per beneficiary for contributions to a 529 savings plan, and since tax year 2023 the plan may be Ohio's CollegeAdvantage or any other state's. Married couples share one $4,000 limit per child, whether they file jointly or separately. Whatever goes above the limit is carried forward with no time limit, so a single large deposit is eventually deducted in full. In 2026 Ohio taxes nonbusiness income above $26,050 at 2.75 %, which puts the value of a full year's deduction for one child at $110. A Toledo couple at $94,000 who put $12,000 across three children saves $330. Amounts withdrawn for anything other than qualified higher education costs come back as income if they were deducted, with exceptions for death, disability and scholarships. A Roth IRA rollover is not recaptured, according to CollegeAdvantage. Ohio accounts take deposits until the balance reaches $570,000.
| Benefit for contributions | Deduction |
|---|---|
| Cap | $4,000 single, $4,000 joint per child (beneficiary) |
| Another state’s plan counts | Yes (tax parity) |
| Carryforward of the excess | unlimited years |
| State plans (official names, no recommendation) | CollegeAdvantage Direct 529 Savings Plan (Ohio 529), CollegeAdvantage Advisor Plan, CollegeAdvantage Guaranteed Plan |
| Account balance limit | $570,000 |
| K-12 withdrawals qualified for state tax | Yes |
| 529 to Roth IRA rollover qualified | Yes |
| Student loan payments qualified | Not stated by the state |
| Add-back on a rollover to another state’s plan | Yes |
Counted per child, carried forward for good
Line 37 of the Ohio IT 1040 limits the deduction to $4,000 per beneficiary per year. Three children means three separate limits, so the Toledo couple deducts the whole $12,000. A spouse does not bring a second limit: the instructions treat the couple as one contributor for each child, which is why the joint and single caps are the same figure.
Ohio limit, child by child
Ohio tax saved on this contribution
$330
| Subtracted from state income | $12,000 |
| Your state marginal rate | 2.75 % |
| Cap that applies this year | $12,000 |
| Back per $1,000 contributed | $28 |
Money above the limit is not wasted on the state return. Ohio carries the excess into later years without an expiry date. The Dayton couple who put a $22,000 inheritance into one account deduct $4,000 in 2026 and save $110, then keep deducting $4,000 a year until the deposit is used up, 6 tax years in all if they add nothing else for that child.
Any state's 529 since 2023
The Department of Taxation's 529 deduction FAQ says contributions to any state's 529 savings plan qualify from tax year 2023. The same $12,000 placed in another state's plan earns the Toledo couple $330, the same as at home. The CollegeAdvantage offering statement still speaks of an Ohio 529 account; we follow the Department's text, which is the tax authority.
A flat 2.75 % above $26,050
Ohio's 2026 schedule for nonbusiness income, after H.B. 96, taxes nothing up to $26,050, then $332 plus 2.75 % of the excess, for every filing status. The calculator applies that schedule as written, fixed amount included, so a deduction that brings income from just above $26,050 to below it removes the $332 as well. The 2026 schedule comes from section 5747.02 of the Revised Code as amended, read in an archived copy of the statute page because the page itself did not load; the Department of Taxation's rate table still ended with 2025 when we checked. Municipal and school district income taxes are not in the figures.
The retired grandfather at $47,000 who gives $4,000 to a grandchild's account saves $110, the most one child's limit can bring in a year at that rate.
When deducted money comes back
Schedule of Adjustments line 4 adds back amounts deducted on any Ohio return that are withdrawn for something other than qualified higher education expenses, except on death, disability or a scholarship. CollegeAdvantage writes that a rollover withdrawal recaptures prior Ohio deductions and that a Roth IRA rollover does not; since any state's plan now earns the deduction, whether a move between 529 plans still triggers an add-back is not settled by the Department's text.
Ohio deductions at stake
Ohio tax if the deductions come back
$440
| Amount added back | $16,000 |
| Your state marginal rate | 2.75 % |
The Department's FAQ still describes K-12 tuition up to the old federal amount; it has published nothing on the $20,000 limit of 2026, the wider K-12 costs or credential programs. Student loan repayments are not addressed on any official Ohio page we read.