Which States Have the Best 529 Plans? 2026 Rankings & Tax Benefits

my529 is Utah’s official nonprofit 529 savings plan, and it is open to everyone. There are no age, income or residency restrictions, so families across the country use it, not just Utah residents. It is a direct-sold plan, which means you open and manage the account yourself without paying an advisor. Its fees are among the lowest in the 529 industry, and it combines that with a broad investment menu and a state tax credit for Utah taxpayers.

Why we like it

Cost is the headline. my529 keeps trimming what account owners pay, and opening an account is free with no ongoing contribution requirement. Morningstar rates the plan highly, and Utah’s oversight of it has been a recurring point in those evaluations.

The plan is also flexible about how the money is used. Funds can go toward college, university, vocational or technical school and graduate school at any eligible institution, plus K-12 tuition (up to $10,000 a year), qualified student loan repayments up to certain limits, qualified credentialing programs and registered apprenticeships. Enrollment is open all year, and the account owner, not the beneficiary, stays in control.

On the investment side, you can choose age-based, static or individual portfolios, including options with FDIC-insured components and a stable value fund. That range suits both hands-off savers who want a portfolio that shifts toward safety as college approaches and people who prefer to pick their own mix.

Earnings are free from federal and Utah income tax when spent on qualified education expenses, and Utah taxpayers can claim a state income tax credit on contributions. Credit limits change, so check my529.org for the current figures. Be aware that non-qualified withdrawals can trigger recapture of the credit as Utah income.

The trade-offs are modest. The credit helps only Utah taxpayers, direct-sold plans leave the investment decisions to you, and like any 529 the investments are not insured or guaranteed and can lose value.

AZ529 is Arizona’s official education savings plan, sponsored and administered by the Arizona State Treasurer’s Office, with investments managed by Fidelity. Anyone age 18 or older can open an account, with no Arizona residency requirement and no application fee. Its standout feature is the tax break: Arizona taxpayers can deduct 529 contributions made to any state’s plan, not just their own.

Why we like it

The tax treatment is the most flexible on our list. Arizona offers a deduction of up to $2,000 per beneficiary for individual filers and $4,000 for married couples filing jointly, and it applies whether you invest in AZ529 or in another state’s plan. That means Arizona residents are never forced to choose a plan for the deduction alone.

The plan itself holds up well. Morningstar gave AZ529 a Silver rating in 2023, 2024 and 2025. You can choose from three kinds of portfolios: age-based, static and individual. The menu includes index-based options, an interest-bearing deposit option and a stable value option, so both hands-off savers and people who like to build their own mix are covered.

Flexibility on how you spend the money is strong too. Savings can pay for college, vocational and workforce training, apprenticeships and private K-12 tuition, plus up to $10,000 of student loan repayment. Qualified withdrawals are free from federal and Arizona income tax, and funds can be used at accredited schools anywhere in the country.

The trade-offs are modest. The deduction is smaller than the credits and deductions some other states offer, the rating is Silver rather than Gold, and like any 529 the investments are not insured or guaranteed and can lose value (apart from the FDIC-insured option).

The Maryland College Investment Plan, run under the Maryland 529 brand, is a direct-sold 529 plan managed by T. Rowe Price. Residents of any state can open an account, and enrollment is open year-round. It stands out for investment performance: as of March 31, 2026, Saving for College ranked its enrollment-based portfolios #1 over both the three-year and ten-year periods.*

Why we like it

Performance and quality are the headline. Beyond the rankings, Morningstar gives the plan a Silver rating, one of only 13 plans to earn it. The plan offers enrollment-based portfolios that shift toward safer investments as college approaches, along with static options, so you can choose a hands-off or a hands-on approach.

Maryland taxpayers get some of the best state benefits we found. Contributions up to $2,500 per beneficiary a year are deductible for single filers, and $5,000 for joint filers. Eligible account holders may also receive a $250 or $500 contribution from the state through the Save4College State Contribution Program. Note that anyone who receives that contribution in a given year can’t take the deduction for that year, so it’s worth comparing the two.

Getting started is easy and affordable. You can save as little as $25 a month, manage your account online or in the Readysave 529 app, and invite family and friends to contribute through Ugift. Funds can cover college as well as technical and trade schools and certified apprenticeships.

The trade-offs are modest. The deduction and state contribution only help Maryland taxpayers, the plan is rated Silver rather than Gold, and like any 529 the investments are not insured or guaranteed and can lose value. Non-qualified withdrawals can also be subject to Maryland tax recapture of earlier deductions.

*Rankings and tax rules change. Check maryland529.com for the latest figures before you invest.

NEST Direct is Nebraska’s direct-sold 529 plan. It is sponsored by the State of Nebraska, administered by the Nebraska State Treasurer and overseen by the Nebraska Investment Council, with Union Bank and Trust serving as program manager. Residents of any state can open an account, and there is no enrollment fee and no annual account fee.

Why we like it

Low, simple costs are the draw. The plan charges a 0.08% program management fee and a 0.02% state administration fee, with no fees to enroll, change investments, transfer or withdraw. According to the plan’s most recent disclosure statement, dated May 14, 2026, index options such as the Vanguard total stock market portfolio carry all-in costs of about 0.12%.

The investment menu draws on several well-known managers, including Vanguard, T. Rowe Price, DFA, MetWest, State Street, American Funds and Dodge & Cox. You can choose age-based portfolios or build your own mix from individual funds, and there is an FDIC-insured bank savings option for the safest part of your savings. Saving for College gives the plan 4 out of 5.

Nebraska taxpayers get a strong tax benefit: a state income tax deduction of up to $10,000 per year ($5,000 if married filing separately) for contributions, including rollovers from other states’ plans. Eligible Nebraska newborns can also receive a one-time $50 seed contribution through the Meadowlark Savings Pledge.

The trade-offs are modest. The deduction only helps Nebraska taxpayers, Nebraska doesn’t treat K-12 tuition as a qualified expense for state tax purposes, and like any 529 the investments (other than the FDIC-insured bank option) can lose value and aren’t guaranteed.

Fees and tax rules change. Check nest529.com for the latest figures before you invest.

NJBEST is New Jersey’s direct-sold 529 plan. It is offered and administered by the New Jersey Higher Education Student Assistance Authority (HESAA) and managed by Franklin Templeton. The plan is built around in-state perks: a state tax deduction, a matching grant and a scholarship. To open an account, either the account owner or the beneficiary must be a New Jersey resident.

Why we like it

The state benefits are what set NJBEST apart. New Jersey residents with gross income of $200,000 or less can deduct up to $10,000 a year in contributions. Residents with household adjusted gross income of $75,000 or less may qualify for a one-time grant that matches an initial deposit dollar for dollar, up to $750, if the account stays open for at least three years. And beneficiaries who attend a New Jersey college can earn the NJBEST Scholarship of up to $6,000, which depends on how long the account has been open and how much has been contributed. The minimum is a $1,200 total contribution and four years open.

Costs are reasonable rather than rock-bottom. There is no enrollment fee and no annual account fee. The program management fee is 0.10% (none on the money market portfolio), and total annual costs run from about 0.13% to 0.81% depending on the portfolio. You can open an account with as little as $25.

The investment menu includes year-of-enrollment portfolios, objective-based portfolios and individual-fund portfolios, plus a money market option. Underlying funds come mostly from Franklin Templeton and its affiliates, along with iShares, Schwab and Vanguard. Saving for College rates the plan 5 out of 5. An account can hold up to $305,000 per beneficiary.

The trade-offs are clear. The plan is only open to families with a New Jersey resident as owner or beneficiary, the deduction has an income limit, and the all-in fees are higher than the cheapest plans nationally. Like any 529, the investments aren’t insured and can lose value.

Fees and tax rules change. Check njbest.com for the latest figures before you invest.

CollegeCounts 529 Fund is Alabama’s direct-sold 529 plan. It is sponsored by the State of Alabama, overseen by a board chaired by the State Treasurer, and run by Union Bank & Trust Company as program manager. It also has a separate advisor-sold plan, but most families going it alone want the direct plan reviewed here. Unlike some state plans, it isn’t limited to residents, so you can open an account from any state.

Why we like it

The state tax break is the draw. Alabama taxpayers can deduct contributions of up to $5,000 on a single return, or $10,000 on a joint return when both spouses contribute, and there is no income cap. Contributions can come from people other than the account owner, and they can still claim the deduction on their own Alabama return. The contribution deadline is December 31, and the postmark date counts. Qualified withdrawals are exempt from Alabama income tax.

The plan is easy to start. There is no minimum to open an account and no ongoing contribution requirement, and no set-up fee. The $12 annual account fee is waived whenever the owner or the beneficiary is an Alabama resident. Costs are moderate rather than rock-bottom: the program management fee is 0.21% and the state fee is 0.07%, for a base of 0.28%. Underlying fund expenses add anywhere from 0.00% to about 0.62%, so all-in costs run from roughly 0.28% to 0.90% depending on the portfolio.

The investment menu includes three age-based tracks (conservative, moderate and aggressive), a set of multi-fund target portfolios and 26 individual-fund portfolios. Underlying funds come from several fund families, including Vanguard, T. Rowe Price and State Street. Alabama also publishes its board meeting materials online, which gives investors an unusual level of transparency into how the plan is run. Accounts can be funded until balances for the same beneficiary across Alabama 529 plans reach $475,000.

The trade-offs are straightforward. The deduction only helps Alabama taxpayers, and capped amounts mean larger savers will outgrow it quickly. If you take a non-qualified withdrawal, the amount is added back to the contributing taxpayer’s Alabama income, plus a 10 percent penalty. Fees are fair but not the lowest nationally, so non-residents with no Alabama tax break can often do better elsewhere. Like any 529, the investments aren’t insured and can lose value.

Fees and tax rules change. Check collegecounts529.com for the latest figures before you invest.