Many families may open a 529 plan to save for college, but but they can also be used for K–12 education. Starting in 2018, federal law was changed to allow tax-free withdrawals of up to $10,000 per year to pay tuition at private, public, or religious elementary and secondary schools. Now new legislation passed in 2025 makes it possible for families to pay for even more K-12 expenses with a 529 plan.
The legislation made two changes:
- The definition of qualified education expenses was expanded to cover additional costs, beyond tuition, for elementary and secondary students.
- The annual withdrawal limit for K-12 expenses increased to $20,000 per student starting in tax year 2026.
Not all states treat distributions for K-12 expenses as qualified for state tax purposes. This means some withdrawals may be subject to state taxes.
This guide explains how 529 plans can be used for private school tuition and other expenses, which states allow it, and the pros and cons of using a 529 for K-12 education.
Which K-12 Expenses Can You Pay for With a 529 Plan?
As of July 4, 2025, 529 plan funds can be withdrawn federal tax free for a broader range of K–12 education-related expenses, not just tuition. These include:
- Curriculum materials (e.g., textbooks, workbooks, digital tools)
- Tutoring services (provided by a teacher or subject matter expert who is not related to the child)
- Online education subscriptions
- Educational therapies for students with disabilities
- Standardized test fees (e.g., SAT, ACT, AP)
- Dual-enrollment fees for college courses taken during high school
These additional qualified expenses offer greater flexibility, particularly for families using alternative education models.
Note that not all states consider follow the federal definition of qualified education expenses. More on this below.
Homeschooling Expenses
Homeschooling costs are still not broadly recognized as a qualified expense unless your state treats homeschooling as a form of private school.
There is no provision to use 529 plan funds for homeschooling expenses, but some states classify homeschooling as a type of private school. If you live in one of these states – Alaska, Indiana, Kansas, Kentucky, or Texas – you may be able to use funds from your 529 plan to cover certain homeschooling expenses that meet the same criteria as tuition.
States That Don’t Consider K-12 Tuition a Qualified Expense
Not all states have conformed to the expanded federal definition of qualified education expenses. Check with your state’s plan administrator for the latest guidance.
If you live in one of these states, you may owe state taxes on 529 withdrawals for private school expenses:
Private School Tuition Might be a State Tax Deduction
Over 30 states offer a tax credit or deduction for contributions to a 529 savings plan. In most cases, the contributor must use their home state’s plan to qualify. However, families who live in Arizona, Arkansas, Kansas, Maine, Minnesota, Missouri, Montana, Ohio, and Pennsylvania can claim a tax deduction for contributions to any state’s 529 plan. Maximum deductions and credits vary by state.
These state tax breaks only apply if the withdrawal is for expenses the state considers qualified, which may not include K-12 tuition or other expenses.
At the state level, non-qualified withdrawals may be subject to state income tax and, in some cases, a penalty on the earnings portion. You may also have to repay any deductions or credits claimed.
Keep in mind that state laws may change at any time. We will continue monitoring this and keep the list as up-to-date as possible. For the most up-to-date information, see our 529 comparison tool.
Selecting a 529 Plan
When deciding which plan to use for private school education funding, you’ll want to start by exploring your home state’s plan to see if you can benefit from a state tax deduction or credit.
No specific 529 portfolios are designed for private K-12 education funding, but that doesn’t mean you can’t find suitable investments. With less time to recover from a market downturn, you want to explore conservative options such as a money market or a stable value portfolio.
How Much to Save for K-12 Tuition
To create an effective 529 funding strategy, you’ll need to determine how much is needed to fund the lesser of the total tuition liability or the maximum allowable withdrawal amounts, so that you will end up with a $0 account balance after paying the final year of private school tuition. This could be achieved with an initial lump sum deposit, monthly contributions, or a combination.
Even with the higher $20,000 withdrawal limit, annual expenses may exceed the tax-free withdrawal limit for some people. According to the Private School Review, average private school tuition for the 2026-27 school year was $13,957 for elementary school and $18,036 for high school. Elite schools can exceed $40,000 per year.
Any cost gaps that 529 plan savings won’t cover must be paid with current income, scholarships, financial aid, or other sources. To help you calculate how much to save in a 529 plan, we’ve developed the 529 Savings Calculator for Private K-12 Tuition.
EXAMPLE
You want to use a 529 plan to pay for your two-year-old child to attend private school from 9th through 12th grade. Annual tuition is currently $10,000 but has been increasing at 5% yearly. You have $10,000 to deposit today. Enter these figures to determine how much you’ll have to contribute each month to pay the tuition costs from your 529 plan savings.
When You Might Want to Use Your 529 Plan for K-12 Expenses
Often, using a 529 plan for private school when your child is young can mean you miss out on potential tax benefits. However, there are some circumstances when using the 529 for primary or secondary expenses makes sense. For example, it may emerge that your child won’t need all the funds for college, whether they decide not to pursue higher education, want to attend an affordable college, or look likely to get a scholarship.
In this case, if you are already paying for a private school and don’t have another child whom you could make the plan’s beneficiary, it may make sense to use some of the 529 for their secondary school tuition. This could also be the case if you’ve earned substantial gains through the 529 plan and want to use them with qualified distributions, such as elementary or secondary school tuition.
Using the 529 to pay for elementary or secondary school can also benefit you if you get tax benefits. If your state gives a tax deduction for 529 plan contributions, you can capture a deduction by paying your child’s school fees into a 529 plan before withdrawing the funds and using them to pay tuition. You’ll pay the same expense you were planning to pay anyway, but you’ll benefit from a tax deduction or credit.
Alternatives to Pay for Private School
There are other types of plans and education savings accounts to help pay for private school tuition that you can use to cover a broader range of educational expenses, no matter where you live. For example, Coverdell ESAs allow you to use funds for qualified education expenses. However, these plans have strict contribution limits, so comparing all options is important to determine the best for your situation.
Pros and Cons of Using 529 Plans for Private School
When weighing any important financial decision, you’ll want to look at the positives and negatives of moving forward. The pros and cons of using your 529 plan for private tuition could vary by person, as your financial situation could change the impact. Let’s look at the most generic pros and cons of making this decision that are relevant for everyone.
Pros of using 529 for private school:
- Capital gains tax: Depending on your state, you can avoid capital gains taxes at the federal and possibly state level.
- Tax deductions: Your state may offer state tax deductions or credits on contributions, allowing you to get tax benefits on tuition expenses.
- Growing available funds: You could grow your 529 accounts by investing more money earlier.
Cons of using 529 for private education:
- Reduced growth potential: Using your 529 funds early for K–12 expenses may limit the compounding growth you’d otherwise earn by saving longer for college.
- Could be taxed: Not all states give tax deductions on contributions, and some consider K-12 tuition a non-qualified distribution, limiting state-tax benefits.
Ultimately, whether you should choose to use a 529 plan to pay for private school expenses depends on your family’s situation. Some factors to weigh with the pros and cons above include:
- How much you have in 529 assets
- How much do you plan to add to your 529 plan
- How much do you think you’ll need to pay for your child’s post-secondary education
- Your state’s tax rules around 529 disbursements
Frequently Asked Questions (FAQs) for 529 Plans and Private Tuition
We’ve compiled some of the most important and frequently asked questions regarding using a 529 plan for private tuition and answered each below.
Can you use 529 for private school K-12 expenses?
Under the federal tax code, the IRS considers K-12 school tuition a qualified distribution for 529 plans. Starting July 4, 2025, additional K–12 costs such as curriculum, tutoring, and online platforms may also qualify at the federal level, though state treatment may vary. Private school tuition may or may not be a qualified distribution for state tax, depending on where you live, as rules vary by state.
Can I use 529 account for private tutoring?
As of July 4, 2025, some tutoring services may now qualify if they meet federal requirements. Check with a tax or financial professional to confirm they qualify.
Can 529 be used for private high schools in California?
Although California residents can access the same federal tax benefits of using a 529 for higher education, their state tax will be adversely affected. California considers 529 withdrawals for secondary school tuition a non-qualified distribution and even imposes a penalty.
Can I use the proceeds of a 529 plan for homeschooling?
You might be able to use a 529 plan to cover homeschooling, depending on the state that you live in. Some states consider homeschooling a type of private school, so you may be able to claim qualified expenses related to your child’s homeschooling. The states that allow this type of expense are currently:
- Alaska
- Indiana
- Kansas
- Kentucky
- Texas
Curriculum and digital tools may qualify under the new rules, but eligibility will depend on state interpretation.
Bottom Line
Your 529 plan can pay for private school K-12 tuition and other expenses. Whether you pay taxes for the withdrawals depends on your state, and whether you should do it depends on your financial situation.
Before making withdrawals, check your state’s rules and run the numbers to see if it benefits your family’s situation. If unsure, consult a financial advisor to explore the best strategy for maximizing your 529 plan.
Find out about your state’s plan
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