Does Utah give a deduction or a credit for 529 contributions?

Utah gives a nonrefundable tax CREDIT, not a deduction. The credit equals 4.55% of your eligible contributions to my529, up to a per-beneficiary contribution cap, which directly reduces your Utah tax bill dollar for dollar.

What is the Utah 529 contribution cap for the credit?

For 2024 the eligible contribution per beneficiary is about $2,580 for single filers and $5,160 for married filing jointly, giving a maximum credit near $117 single or $235 joint per beneficiary. The cap is indexed and adjusts over time.

Does the credit apply to out-of-state 529 plans?

No. Only contributions to my529, Utah's own plan, qualify for the Utah credit. Contributions to another state's 529 plan do not earn the Utah tax credit, even if you live in Utah.

Can I carry forward contributions above the cap?

No. Utah does not allow a carryforward of excess contributions for the credit. Any amount above the per-beneficiary cap simply earns no additional Utah credit that year, though it still grows tax-free in the account.

Is the credit per beneficiary or per account?

The cap applies per qualified beneficiary. Contributing for two children gives you two separate caps, so families can earn a larger total credit by funding multiple beneficiaries. This tool figures the credit for a single beneficiary.

Utah 529 Plan Tax Benefit Calculator

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Utah rewards my529 savers with a state income tax credit rather than a deduction. This calculator caps your eligible contribution at the per-beneficiary limit, applies Utah’s 4.55 percent credit rate, and shows the credit that comes straight off your Utah tax bill.

How it works

Utah’s credit is a flat percentage of contributions up to a yearly cap per beneficiary:

Credit rate          4.55% of eligible contributions
Cap (2024) single    $2,580 per beneficiary
Cap (2024) joint     $5,160 per beneficiary
Max credit single    ~$117  per beneficiary
Max credit joint     ~$235  per beneficiary

The eligible contribution is the smaller of what you contributed and the cap. Multiply that by 4.55 percent to get your credit. Anything above the cap earns no extra credit and cannot be carried forward.

Example

A married couple contributing 6,000 dollars to my529 for one child has eligible contributions capped at 5,160 dollars. At 4.55 percent the credit is about 235 dollars. The extra 840 dollars above the cap still grows tax-free but adds no further Utah credit this year.

Notes

The cap is indexed and changes yearly, and the credit is nonrefundable, so it cannot exceed your Utah tax. Only my529 contributions qualify. Verify the current cap and rate at my529.org and tax.utah.gov.