Oregon 529 tax credit in 2026
A small credit built for modest incomes: the lower the income, the fewer dollars it takes to reach the maximum, and it is paid even with no tax due.
Oregon tax saved on this contribution
$375
25.0 % of what you put in comes back on your 2026 return.
| Credit on your state return | $375 |
| Your state marginal rate | 8.75 % |
| Cap that applies this year | $1,520 |
| Back per $1,000 contributed | $250 |
Oregon: Refundable credit equal to an AGI-based percentage of contributions to an Oregon higher education savings plan (Embark, MFS 529 Savings Plan): 100% up to $30,000 AGI, 50% to $70,000, 25% to $100,000, 10% to $250,000, 5% above; max $190 ($380 joint) for 2026 per the plan site ($180/$360 for 2025 per DOR). Same AGI tiers for all filing statuses. Read on 2026-10-19. No federal deduction exists for 529 contributions.
| Taxable income | Marginal rate | Tax saved |
|---|---|---|
| $50,000 | 8.75 % | $380 |
| $100,000 | 8.75 % | $375 |
| $200,000 | 8.75 % | $150 |
| $400,000 | 9.90 % | $75 |
Worked out by Radif Partners · How we calculate · Oregon rule read on October 19, 2026, brackets of tax year 2025 · not tax advice
Oregon gives a refundable tax credit for contributions to its own plans, Embark and the MFS 529 Savings Plan, instead of a deduction. The credit is a share of what you put in, set by adjusted gross income (AGI): 100 % up to $30,000, falling to 5 % above $250,000. The plan site gives a 2026 maximum of $190 for a single filer and $380 on a joint return, slightly above the 2025 figure printed by the Department of Revenue. A single parent at $27,000 reaches the full credit with a deposit of just $190; a Salem couple at $88,000 needs $1,520 for their $380. Because it is refundable, the credit is paid even when it exceeds the tax owed. Oregon does not follow the federal K-12 rule: a K-12 withdrawal is non-qualified and the credit it produced is recaptured. Student loan repayments are qualified, and accounts take deposits up to $400,000.
| Benefit for contributions | Credit |
|---|---|
| Largest credit | $190 single, $380 joint |
| Credit by income | single up to $30,000: 100 %, max $190; joint up to $30,000: 100 %, max $380; single up to $70,000: 50 %, max $190; joint up to $70,000: 50 %, max $380; single up to $100,000: 25 %, max $190; joint up to $100,000: 25 %, max $380; single up to $250,000: 10 %, max $190; joint up to $250,000: 10 %, max $380; single above: 5 %, max $190; joint above: 5 %, max $380 |
| Another state’s plan counts | No, in-state plan only |
| State plans (official names, no recommendation) | Embark (formerly Oregon College Savings Plan), MFS 529 Savings Plan |
| Account balance limit | $400,000 |
| K-12 withdrawals qualified for state tax | No |
| 529 to Roth IRA rollover qualified | Not stated by the state |
| Student loan payments qualified | Yes |
| Add-back on a rollover to another state’s plan | Not settled by the state text |
Income sets the rate, the cap sets the ceiling
Publication OR-17 describes a credit equal to a percentage of contributions, with five income bands that apply to every filing status. Each band hits the same dollar ceiling, so the deposit needed to max out the credit grows as income rises. The table uses the 2026 maximum published by Embark.
| Adjusted gross income | Credit rate | Deposit for the full credit, single | Deposit for the full credit, joint |
|---|---|---|---|
| Up to $30,000 | 100 % | $190 | $380 |
| $30,000 to $70,000 | 50 % | $380 | $760 |
| $70,000 to $100,000 | 25 % | $760 | $1,520 |
| $100,000 to $250,000 | 10 % | $1,900 | $3,800 |
| Above $250,000 | 5 % | $3,800 | $7,600 |
Above those deposits, more money earns no more credit that year. The Portland couple at $182,000 who put in $3,000 receive $300, and a single filer at $310,000 contributing $2,000 receives $100. The thresholds were the same in the Department's 2025 table and on the plan's 2026 page; whether they are adjusted for inflation is not stated.
Our calculator compares the band limits with the taxable income you type, which stands in for AGI. AGI comes before the standard or itemized deduction, so it is usually higher; enter your AGI in the income field to place yourself in the right band.
Your Oregon band
Oregon tax saved on this contribution
$380
| Credit on your state return | $380 |
| Your state marginal rate | 8.75 % |
| Cap that applies this year | $760 |
| Back per $1,000 contributed | $500 |
Paid even with no tax due
The credit is refundable: a household whose Oregon tax is smaller than the credit gets the difference back. That is what makes the 100 % band meaningful. The Eugene parent at $27,000 who deposits $190 gets $190 back, the whole deposit returned by the state. Oregon's income tax rates, which reach 9.9 %, play no part in the amount. Spouses filing separately split the joint figure.
K-12 money stays outside
Oregon disconnected from the federal rule on elementary and secondary tuition. Oregon plans are for higher education only, and a K-12 withdrawal is non-qualified: the credit that money produced is recaptured, and contributions subtracted before 2020, when Oregon still gave a subtraction, are added back. Recapture applies only to the extent the withdrawn contributions produced a tax benefit. Student loan repayments, by contrast, are qualified.
A K-12 bill paid from an Oregon account
Tax-free from the 529 this year (federal)
$9,500
| Federal cap per child, 2026 | $20,000 |
| Above the cap | $0 |
| Federal tax and 10 % on that part | $0 |
| Oregon treatment | Not qualified: add-back or tax |
Two points are not settled in what the state publishes: whether a rollover to a Roth IRA counts as qualified for recapture purposes, and what happens when an Oregon account is rolled to another state's plan. The Embark tax benefits page is the source of the 2026 figures.