Rhode Island 529 tax deduction in 2026
A yearly cap of a few hundred dollars per filer, offset by a carryforward that lets a large deposit be deducted slice by slice.
Rhode Island tax saved on this contribution
$48
4.8 % of what you put in comes back on your 2026 return.
| Subtracted from state income | $1,000 |
| Your state marginal rate | 4.75 % |
| Cap that applies this year | $1,000 |
| Back per $1,000 contributed | $48 |
Rhode Island: Modification for contributions by the account owner to CollegeBound Saver (Rhode Island's 529 plans) up to $500 ($1,000 married filing jointly) per year; excess carried forward to future years under the same annual maximums. Read on 2026-10-19. No federal deduction exists for 529 contributions.
| Taxable income | Marginal rate | Tax saved |
|---|---|---|
| $50,000 | 3.75 % | $38 |
| $100,000 | 4.75 % | $48 |
| $200,000 | 5.99 % | $60 |
| $400,000 | 5.99 % | $60 |
Worked out by Radif Partners · How we calculate · Rhode Island rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
Rhode Island lets the owner of a CollegeBound Saver account deduct up to $500 of contributions a year, or $1,000 on a joint return, from state income. That is a small amount, so the rule that matters is the carryforward: anything above the yearly maximum moves to future years and is deducted under the same cap, with no end date stated. A Providence couple at $148,000 who put $6,500 in once deduct $1,000 in 2026 and save $48, then keep deducting for 7 years in all. A Warwick single parent at $44,000 who saves $500 saves $19. Only Rhode Island's own programs count, and only contributions made by the account owner. Rates run from 3.75 % to 5.99 % on one schedule for every filing status. Non-qualified withdrawals and rollovers out may bring prior deductions back. The plan reports that the state aligns with every federal qualified use, K-12 included, and accounts take deposits until they reach $520,000.
| Benefit for contributions | Deduction |
|---|---|
| Cap | $500 single, $1,000 joint per return |
| Another state’s plan counts | No, in-state plan only |
| Carryforward of the excess | unlimited years |
| State plans (official names, no recommendation) | CollegeBound Saver, CollegeBound 529 (advisor-sold) |
| Account balance limit | $520,000 |
| 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 | Yes |
Small slices, many years
A $1,000 ceiling on a joint return means the full deduction for a couple in the middle bracket is worth $48 a year. Rhode Island makes up for the size of the cap by letting contributions above it roll into later tax years, each year limited to the same $500 or $1,000. The Providence couple's one-time $6,500 is deducted over 7 returns if they add nothing else; a deposit made every year at the cap uses the full benefit with nothing left over.
A Rhode Island deposit this year
Rhode Island tax saved on this contribution
$19
| Subtracted from state income | $500 |
| Your state marginal rate | 3.75 % |
| Cap that applies this year | $500 |
| Back per $1,000 contributed | $38 |
The deduction belongs to the account owner. A grandparent who sends money to a parent-owned account does not claim it, according to the CollegeBound Saver program description; the owner does, within the owner's own cap.
Where the figures come from
The $500 and $1,000 amounts and the carryforward are taken from the CollegeBound Saver program description, the document of the state-run plan administered by the General Treasurer. The Division of Taxation's own instructions could not be reached, so the figures were not checked against Schedule M of the RI-1040 or the statute. The 2026 rate schedule, 4.75 % from $82,050 and 5.99 % from $186,450, was read through a search index of the Division's inflation advisory for 2026.
A couple in the top bracket, at $205,000, saves $60 for a full $1,000. One schedule for all filers means that a single parent and a married couple at the same income pay the same rate.
CollegeBound only
Contributions to another state's plan are not deductible: the Providence couple would get $0 instead of $48 a year. The two programs that count are CollegeBound Saver, sold directly, and CollegeBound 529, sold through advisors.
Leaving and spending
The program description warns that non-qualified distributions and rollover distributions by the account owner may trigger recapture of prior Rhode Island deductions. A rollover to a Roth IRA is not recaptured, according to the Department of Revenue as quoted by the plan.
Rhode Island deductions that could come back
Rhode Island tax if the deductions come back
$333
| Amount added back | $7,000 |
| Your state marginal rate | 4.75 % |
A September 2025 supplement reports that the Division of Taxation decided Rhode Island law aligns with every qualified use under Section 529, so the K-12 costs added in 2025, up to $20,000 a year from 2026, and credential programs are not taxed or recaptured. An August 2025 supplement had called the question undecided. The Division's own notice was not read. Student loan repayments and apprenticeship costs are listed as exempt in the June 2025 program description.