Washington 529 plan: no state income tax, what counts in 2026
Two state programs, one priced in market returns and one in tuition units, and an income tax on the horizon that does not touch 2026.
In the 529 at age 18
$114,288
$8,080 more than the same money in a taxable account, plus $0 of Washington tax saved along the way.
| You put in | $64,800 |
| Growth, tax-free for school costs | $49,488 |
| Taxable account after tax | $106,208 |
| Washington 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 | $10,800 | $11,773 |
| 6 | 6 | $21,600 | $25,794 |
| 9 | 9 | $32,400 | $42,494 |
| 12 | 12 | $43,200 | $62,384 |
| 15 | 15 | $54,000 | $86,074 |
| 18 | 18 | $64,800 | $114,288 |
Worked out by Radif Partners · How we calculate · Washington rule read on October 19, 2026, brackets of tax year 2026 · not tax advice
Washington does not tax wages in 2026, so a 529 contribution brings no state deduction or credit and no state tax applies when money comes out. The state runs two programs: WA529 Invest, the investment plan formerly called DreamAhead, which accepts deposits until the accounts of one beneficiary reach $500,000, and GET Prepaid Tuition, which sells tuition units under its own limits. The 529's value for a Washington family is federal: growth untaxed while invested and tax-free withdrawals for qualified costs, now including up to $20,000 a year of K-12 costs per child and credential programs. A Tacoma couple at $175,000 who save $300 a month from birth would have about $114,288 at 18, assuming a 6 % yearly return, against $106,208 in a taxable account after federal tax. The Department of Revenue reports a new tax on income above $1,000,000 of AGI from January 1, 2028; it plays no part in 2026.
| State income tax on wages | None |
|---|---|
| Benefit for contributions | None (no income tax) |
| State plans (official names, no recommendation) | WA529 Invest (formerly DreamAhead College Investment Plan), GET Prepaid Tuition (Guaranteed Education Tuition) |
| Account balance limit | $500,000 |
GET units and WA529 Invest dollars
The WA529 FAQ presents the two programs side by side. GET, the state's prepaid tuition program, sells units tied to tuition rather than to a portfolio, and its purchase limits are counted in units; we did not check those limits for this page. WA529 Invest works like most state savings plans, with investment portfolios whose value moves with the markets, and its Program Details Booklet sets the ceiling at $500,000 per beneficiary. The FAQ also states plainly that neither program carries a state tax benefit, because Washington has no income tax.
Eighteen years from birth
With nothing to deduct, the account's worth comes from compounding that the federal government does not tax. The Tacoma couple put in $64,800, and at a 6 % yearly return the balance reaches $114,288. Placed in a brokerage account instead, the same money pays federal tax on dividends each year and on the gain when sold, leaving $106,208. Washington also levies a capital gains excise tax on some sales of investments; the calculator's taxable column leaves it out.
Starting a WA529 Invest account at ten
In the 529 at age 18
$55,727
| You put in | $40,800 |
| Growth, tax-free for school costs | $14,927 |
| Taxable account after tax | $53,388 |
| Washington tax saved, 8 years | $0 |
The 2028 income tax, and what is not yet known
The Department of Revenue's income tax page says SB 6346, passed in the 2026 session, creates a 9.9 % tax on individuals and joint filers whose AGI exceeds $1,000,000, starting January 1, 2028. Nothing changes for 2026 or 2027. We did not check whether that law contains any 529 deduction or any rule on withdrawals, so a high-income family should not assume either way until the Department publishes guidance.
The 2025 federal law, read by WA529
A WA529 Invest one-sheet summarizes the changes of Public Law 119-21: postsecondary credential costs after July 4, 2025, a broader list of K-12 expenses and the K-12 limit raised to $20,000 from 2026, up from $10,000. With no state income tax, Washington has nothing to conform or decline, and a K-12 withdrawal is simply tax-free under federal rules within the limit. The credential programs page lists what counts.
If the family moves across the border
Leaving Washington can bring a state benefit for new deposits. In Oregon, the couple at $175,000 contributing $3,600 a year would receive $360 on the Oregon return; in Idaho, using Idaho's plan, $191. Each state writes its own rule about which plans count, so the out-of-state plan page is the place to check before moving the old balance.