The Pennsylvania 529 plan calculator shows the state income tax you save by contributing to a college savings plan. Pennsylvania is unusually generous: it lets you deduct contributions to any 529 plan, capped per beneficiary at the federal gift-tax exclusion, against its flat 3.07% income tax.
How it works
Pennsylvania caps the deduction per beneficiary and applies the flat rate:
cap per beneficiary = federal gift exclusion (single ~$19,000, joint ~$38,000)
deductible = min(contribution, cap) for each beneficiary, summed
state tax saved = total deductible x 3.07%There is no carryforward — contributions above the cap in a year are not deductible.
Worked example
A married couple contributes $25,000 for one child, filing jointly (cap ~$38,000):
- Deductible: min(25,000, 38,000) = $25,000
- State tax saved: 25,000 x 0.0307 = $767.50
If a single filer contributed the same $25,000 (cap ~$19,000), only $19,000 is deductible, saving 19,000 x 0.0307 = $583.30.
Tips and notes
- Per beneficiary, per taxpayer. The cap is multiplied by the number of beneficiaries you fund — two children each get their own cap.
- Any plan qualifies. You don’t have to use the PA 529 plan to claim the PA deduction, though the in-state plan has its own features.
- Flat rate keeps it simple. Because PA taxes income at a flat 3.07%, your savings are easy to predict — there are no brackets to consider.
- No carryforward. Over-funding past the cap in one year wastes the deduction on the excess; spread large gifts across years if you can.