529 Contribution Limits 2025: Maximums by State, Gift Tax Exclusion, and More

If you’re wondering how much you can contribute to a 529 plan each year, the good news is that the IRS doesn’t set an annual contribution limit. However, there are three types of contribution limits to be aware of when planning your 529 savings strategy:

• Annual gift tax limits. Contributions to a 529 plan are considered gifts by the IRS. If you make a contribution that exceeds the annual gift tax exclusion – $19,000 for single filers, $38,000 for married couples filing jointly in 2025 – you will need to file a gift tax return. 
• Yearly state tax benefit limits. Nearly 40 states offer a state tax deduction or credit for contributions to a 529 plan, but most states set an annual limit on the amount you can deduct or claim on your state tax return. You can contribute more than your state’s limit, but you won’t receive any additional state tax benefit on the excess unless your state offers a carryforward.
• Aggregate lifetime contribution limits. Each state sets a maximum on how much you can contribute to a 529 plan for each child over time. These limits are generally very high and rarely get in the way of a family’s ability to save for education.

In the table below, the State Tax Benefit shows the maximum annual contribution that will qualify for your state’s tax benefit, depending on whether you’re a single filer or married filing jointly. The Aggregate Limit represents the most that you can contribute to the plan for a single beneficiary over the lifetime of the account.

Limits on Contributions Eligible for State Income Tax Benefits

Nearly 40 states offer a state income tax deduction or state income tax credit for 529 plan contributions. In New Mexico, South Carolina, and West Virginia, 529 plan contributions are fully deductible from state taxable income. However, most states limit the contribution amount that can be deducted from taxes in a given year. 

Some states allow taxpayers to carry forward excess contributions for state income tax purposes. Some allow the carryforward for a set number of years, but Ohio, Rhode Island, Virginia, and Wisconsin allow the carryforward for an unlimited number of years.

Suppose Ohio parents want to contribute more than their state’s annual limit of $4,000 per beneficiary. In that case, they may deduct the excess in future years in increments of $4,000 per year until the entire contribution amount is deducted.

Aggregate 529 College Savings Plan Limits

Each state sets an aggregate limit for 529 plan contributions. This limit applies to the total contributions to 529 plans administered by a particular state for the same beneficiary over the life of the accounts. The limits are based on the price to attend an expensive 4-year college and graduate school in that state. The limits are intended to allow coverage of all college costs that are considered qualified higher education expenses.

Once the combined balances of a beneficiary’s in-state 529 plans hit the state’s aggregate limit, no additional contributions can be made to any 529 plan administered by that state. However, the accounts won’t face penalization if investment earnings push the account balance above the limit. The limit is strictly on additional contributions unless the combined 529 plan balances dip below the limit due to either a drop in the value of the investments or a distribution taken by the account owner.

Families can contribute beyond a state’s aggregate limit by participating in another state’s plan. IRS regulations don’t prohibit a beneficiary from holding accounts in multiple states with a combined balance exceeding a single state’s aggregate limit. Any balance above a state’s aggregate limit should align with the beneficiary’s anticipated higher education needs.

Annual 529 plan gift tax limits

Contributions to a 529 plan are not deductible from federal income taxes, and the IRS does not set a limit on annual contributions. However, the IRS considers contributions to a 529 plan to be completed gifts for federal tax purposes, and gifts are subject to annual limits.

As of 2025, up to $19,000 per donor per beneficiary ($18,000 in 2024) qualifies for the annual gift tax exclusion. Taxpayers must report excess contributions above $19,000 on IRS Form 709, which will count against the taxpayer’s lifetime estate and gift tax exemption amount ($13.99 million in 2025). 

Does this mean you’ll have to pay gift taxes on contributions in excess of $19,000 in a single year? Not necessarily. You may be able to use a strategy known as 5-year gift-tax averaging or superfunding to contribute larger amounts. And thanks to the high annual and lifetime exemptions, most people will never be subject to paying gift taxes.

Bottom Line

529 plans let you save as much as you want each year, but watch three key limits: the annual gift-tax exclusion ($19,000 per donor or $38,000 per married couple in 2025), your state’s 529 tax-benefit threshold, and the high, state-specific lifetime aggregate cap.

By keeping contributions within gift-tax rules, maxing out any available state deduction or credit, and tracking your plan’s lifetime maximum (or using another state’s plan once you hit it), you’ll build 529 plan funds efficiently.