529 College Savings Plan in 2026: How Much to Save and When to Start
Project your savings with our [College Savings 529 Calculator](/calculators/finance/college-savings-529-calculator).
2026 College Cost Benchmarks (4-Year Degree)
| 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, in 18 years these numbers are 2.4x higher.
Monthly Savings Needed to Cover 100% of College Costs (at 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/month. Starting early is worth $8,760/year in contributions.
529 Tax Benefits in 2026
- Federal: No federal tax deduction but growth and withdrawals for qualified education expenses are tax-free
- State: 34 states offer state income tax deductions for 529 contributions (up to $10,000-$20,000/year for married filers)
- Gift tax: Up to $19,000/year per beneficiary (or $95,000 lump sum using 5-year gift tax averaging)
- SECURE 2.0: Unused 529 funds can now be rolled into a Roth IRA (up to $35,000 lifetime, after 15-year holding period)
What Counts as a Qualified Expense
- Tuition and fees
- Room and board (on-campus or equivalent off-campus)
- Books and required supplies
- Computers and technology (if required)
- K-12 tuition up to $10,000/year
Does NOT count: Transportation, personal expenses, sports equipment, health insurance
If You Have an Existing 529 That Is Short
- Increase contributions now and let compounding do more work
- Consider target-date 529 funds that shift to conservative allocation as college approaches
- Plan for partial funding — students can cover the gap with part-time work, scholarships, or limited loans
- Use our [College ROI Calculator](/calculators/finance/college-roi-calculator) to verify the degree is worth the full cost
Related Tools
- [College ROI Calculator](/calculators/finance/college-roi-calculator) — Verify the degree ROI
- [Compound Interest Calculator](/calculators/finance/compound-interest-calculator) — Project 529 growth
- [Student Loan Calculator](/calculators/finance/student-loan-calculator) — If loans supplement savings