529 College Savings Plan in 2026: How Much to Save
Project your savings with our [College Savings 529 Calculator](/calculators/finance/college-savings-529-calculator).
2026 College Cost Benchmarks (4-Year Total)
| School Type | Annual Cost | 4-Year Total |
|---|---|---|
| Public in-state | $28,000 | $112,000 |
| Public out-of-state | $46,000 | $184,000 |
| Private nonprofit | $62,000 | $248,000 |
| Elite private (Ivy) | $82,000 | $328,000 |
At 5% annual cost inflation, these numbers are 2.4x higher in 18 years.
Monthly Savings Needed to Cover 100% of Costs (7% Return)
| Child Age Now | Public In-State | Private Nonprofit | Elite Private |
|---|---|---|---|
| Newborn (18 years) | $290/month | $640/month | $850/month |
| Age 3 (15 years) | $400/month | $870/month | $1,160/month |
| Age 5 (13 years) | $510/month | $1,110/month | $1,480/month |
| Age 8 (10 years) | $740/month | $1,610/month | $2,150/month |
| Age 10 (8 years) | $1,020/month | $2,230/month | $2,970/month |
Starting at birth vs age 10 for public in-state: $290 vs $1,020 per month. Starting early saves $8,760 per year in required contributions.
2026 Tax Benefits
- Federal: Growth and qualified withdrawals are tax-free
- State deductions: 34 states offer deductions up to $10,000-$20,000/year for married filers
- Gift tax: Up to $19,000/year per beneficiary ($95,000 using 5-year averaging)
- SECURE 2.0: Unused 529 funds can roll into a Roth IRA — up to $35,000 lifetime after 15 years
Qualified Expenses
Covered: tuition and fees, room and board, books, computers (if required), K-12 up to $10,000/year.
Not covered: transportation, personal expenses, health insurance.
If Your 529 Is Short
- Increase contributions now and let compounding work harder
- Plan for partial funding — students can cover gaps with part-time work and scholarships
- Verify the degree is worth the full cost with our [College ROI Calculator](/calculators/finance/college-roi-calculator)
Related Tools
- [College ROI Calculator](/calculators/finance/college-roi-calculator) — Verify degree ROI before committing
- [Compound Interest Calculator](/calculators/finance/compound-interest-calculator) — Project 529 growth
- [Student Loan Calculator](/calculators/finance/student-loan-calculator) — If loans supplement savings