Alabama · 2026 contributions
Alabama 529 tax deduction calculator.
See how much of your CollegeCounts 529 contribution you can deduct on your Alabama return and what it saves you.
Yes. Alabama taxpayers can deduct up to $5,000 per tax year, or $10,000 for married couples filing jointly if both actually contribute, across all Alabama 529 programs combined. The deduction is for the tax year in which the contribution is made, so a 2026 deduction needs the contribution made in 2026.
The amounts come from the CollegeCounts 529 plan site, read November 2, 2026. Enter your contribution and your state tax rate to see the deduction and the tax saved.
Your numbers
Result
How this is calculated
The CollegeCounts 529 plan disclosure says individuals who file an Alabama income tax return are eligible to deduct up to $5,000 per tax year ($10,000 for married taxpayers filing jointly if both actually contribute) for total combined contributions to the plan and other State of Alabama 529 programs. The contributions are deductible on the return of the contributing taxpayer for the tax year in which they are made.
That wording matters in two ways. First, the cap is per taxpayer, not per child: three beneficiaries do not triple it. Second, there is no prior-year grace period in the plan's text, so for the 2026 return the contribution has to be made by December 31, 2026. The calculator shows the days left until that date.
The calculator applies the $5,000 cap, or $10,000 when you file jointly and tick that both spouses contribute, and multiplies the deductible amount by the Alabama rate you enter. We do not guess your rate.
Worked example
$7,000, single. $5,000 is deductible and $2,000 is over the cap.
$12,000, married filing jointly, both spouses contribute. The joint cap of $10,000 applies, so $10,000 is deductible and $2,000 is over.
$12,000 contributed by one spouse only, married filing jointly. The plan's $10,000 needs both spouses to contribute, so we use the $5,000 single cap.
Limits of this estimate
We read the CollegeCounts 529 plan disclosure, not an Alabama Department of Revenue page, so the figures are the plan's statement of state law. The plan says a nonqualified withdrawal must be added back to the contributing taxpayer's Alabama income, plus 10% of the amount withdrawn, which this calculator does not model. The tax saved is only the Alabama income tax effect at the rate you enter.
Who should check first
If you give to another family member's account, the cap is still yours alone. If you also use another Alabama 529 program, the $5,000 is shared across them, not doubled.
Sources
Primary sources opened and checked on November 2, 2026. Figures are for tax year 2026 unless a source says otherwise.
Frequently asked questions
Does Alabama have a 529 tax deduction?
Yes. The CollegeCounts 529 plan says Alabama income tax filers can deduct contributions to the plan.
How much can I deduct in Alabama?
Up to $5,000 per tax year, or $10,000 for married taxpayers filing jointly if both actually contribute, for combined contributions to the plan and other Alabama 529 programs.
Is the Alabama limit per child?
No. The plan's wording is per taxpayer per tax year across the plan and other Alabama 529 programs, not per beneficiary.
What is the Alabama 529 contribution deadline?
The plan says contributions are deductible for the tax year in which they are made, so for 2026 the contribution must be made by December 31, 2026.
What if I take a nonqualified withdrawal?
The plan says an amount equal to the nonqualified withdrawal plus 10% of the amount withdrawn must be added back to the contributing taxpayer's Alabama income.
Is there a federal deduction too?
No. Federal law gives no deduction for 529 contributions. The federal benefit is tax-free growth on qualified withdrawals.
Not tax advice
This page is general information, not tax, legal or financial advice. Tax rules change and your facts may differ. Confirm anything that matters with your state tax agency, your 529 plan or a tax professional before you act. Everything runs in your browser; nothing you enter is sent anywhere.