Alabama 529 Tax Deduction Calculator
2026 rulesEnter your contribution to see how much Alabama lets you deduct and what it saves you this year.
Your numbers
Result
Alabama tax saved
- Total contributed$5,000
- Deductible this year$5,000
- Alabama tax saved this year$250
- Saved per $1,000 deducted$50.00
The joint $10,000 requires both spouses to contribute. Nonqualified withdrawals are added back with a 10% state penalty.
Alabama at a glance
- Benefit
- Alabama lets you deduct up to $5,000 ($10,000 joint) of contributions to CollegeCounts 529 each year.
- Plans that count
- CollegeCounts 529.
- Good to know
- The joint $10,000 requires both spouses to contribute. Nonqualified withdrawals are added back with a 10% state penalty.
Questions
Is there a Alabama tax deduction for 529 contributions in 2026?
Alabama lets you deduct up to $5,000 ($10,000 joint) of contributions to CollegeCounts 529 each year.
What can 529 money pay for without tax?
College tuition, fees, books, and room and board for students enrolled at least half time; up to $20,000 a year of K-12 tuition and expenses from 2026; apprenticeship costs; and up to $10,000 of student loan payments over a lifetime. States can treat some of these differently.
What happens to the Alabama deduction if I withdraw for something else?
A nonqualified withdrawal is taxed on its earnings, plus a 10% federal penalty, and Alabama can add back the deductions you took on the money you withdraw.