Texas 529 Plan Savings Calculator
Estimate how a 529 plan investment grows over time for Texas residents
Texas Calculator
Get accurate results
Updated for 2025 with real Texas rates, brackets, and regulations
Saving for college in Texas through a 529 plan has one notable difference from most states: since Texas has no state income tax, there is NO state tax deduction for 529 contributions. This means you get the same state tax benefit (zero) regardless of which state's 529 plan you use — giving Texans complete freedom to choose the best plan based on fees and investment options rather than state tax benefits. The Lonestar 529 plan is Texas's official plan, but you should compare it to top-rated plans from other states. Federal tax-free growth still applies to all 529 plans.
Calculate Your TX Tax
Savings in 15 Years
$109,333
Total Contributed
$59,000
Investment Growth
$50,333
TX 529 Tax Deduction
N/A (no state income tax)
Federal Tax-Free Growth
Yes (529 qualified)
Est. TX College Years Covered
13.7years
TX Plan
Lonestar 529
Breakdown
Insight
Saving $300/month for 15 years at 7% returns gives you $109,333 — covering ~13.7 years of TX public university. Since Texas has no state income tax, there's no state tax deduction for 529 contributions (unlike states like NY or CA). However, the federal benefit remains: 529 growth and qualified withdrawals are tax-free. Texas's Lonestar 529 plan offers age-based and static portfolio options. Consider: since TX offers no 529 state deduction, you can use ANY state's 529 plan — compare fees across plans.
AI Explanation
What This Means
Based on default inputs, the Texas 529 Plan Savings Calculator shows a savings in 15 years of $109,333. Key figures: Total Contributed: $59,000, Investment Growth: $50,333, TX 529 Tax Deduction: N/A (no state income tax), Federal Tax-Free Growth: Yes (529 qualified), Est. TX College Years Covered: 13.7years, TX Plan: Lonestar 529.
Key Insights
Saving $300/month for 15 years at 7% returns gives you $109,333 — covering ~13.7 years of TX public university. Since Texas has no state income tax, there's no state tax deduction for 529 contributions (unlike states like NY or CA). However, the federal benefit remains: 529 growth and qualified withdrawals are tax-free. Texas's Lonestar 529 plan offers age-based and static portfolio options. Consider: since TX offers no 529 state deduction, you can use ANY state's 529 plan — compare fees across plans.
What You Can Do
Enter your actual figures in the calculator above for a personalized breakdown. Consider consulting a tax professional for comprehensive planning, especially for complex situations involving multiple income sources or deductions.
Keep In Mind
This calculator provides estimates based on 2026 rates. Actual tax liability may vary based on credits, exemptions, and other factors not captured here. This is for educational purposes only and should not be considered tax advice.
How the Texas 529 Plan Savings Calculator Works
The Texas 529 Plan Savings Calculator uses 2026 tax rates, brackets, and deductions specific to Texas to provide you with an accurate estimate of your tax obligations. Unlike generic federal-only calculators, this tool accounts for the unique tax structure that Texas residents face.
Formula
Future Value = PV(1+r)^n + PMT × ((1+r)^n - 1)/r. 529 growth: tax-free federally. TX state deduction: N/A (no income tax).Simply enter your financial details above, and the calculator instantly computes your results using the latest available data. All calculations happen directly in your browser — your personal information is never sent to any server or stored anywhere.
Why Use a Texas-Specific Calculator?
State-Specific Rates
Uses real 2026 Texas tax brackets, rates, and thresholds — not generic national averages that miss state-level nuances.
Local Programs & Exemptions
Factors in Texas-specific programs, exemptions, and deductions that national calculators simply don't account for.
Instant & Private
All calculations run locally in your browser. No account required, no data stored, no waiting for results.
AI-Powered Explanations
Get a plain-English breakdown of your results with actionable insights you can actually use for financial planning.
What's Included
Any State Plan Freedom
No TX state deduction means you can choose the best 529 plan from ANY state.
Growth Projections
See how monthly contributions grow over time with compound interest.
TX College Cost Coverage
Shows how many years of UT Austin or community college your savings cover.
Frequently Asked Questions
Does Texas have a 529 tax deduction?
No — because Texas has no state income tax, there is no state deduction to claim. This actually gives Texans an advantage: you can choose ANY state's 529 plan based on fees and performance, not tax benefits. States like New York or Illinois offer deductions only for their own plan, locking residents in.
What is the Lonestar 529 plan?
Texas's official 529 plan, administered by OFI (Orion Portfolio Solutions). It offers age-based portfolios and static options. Fees are moderate (~0.30-0.60% expense ratio). Since there's no TX tax deduction, compare Lonestar's fees to top-rated plans like Utah my529 or New York 529 Direct.
How much do I need to save for Texas college?
For in-state UT Austin: ~$24,000/year total cost (tuition + room + board + fees). Over 4 years: ~$96,000. With 5% annual cost increase: ~$117,000 if your child starts in 15 years. Community college first 2 years reduces this by ~40%.
Can 529 money be used for K-12 tuition?
Yes — since the Tax Cuts and Jobs Act of 2017, up to $10,000/year from 529 plans can be used for K-12 private school tuition (including religious schools). Texas has a growing school choice movement, and this provision benefits families using 529s for private elementary/secondary education.
What if my child doesn't go to college?
You can change the beneficiary to another family member (sibling, cousin, yourself, etc.) with no tax penalty. Starting in 2024, unused 529 funds can be rolled into a Roth IRA for the beneficiary (up to $35,000 lifetime, subject to conditions). Non-qualified withdrawals face income tax + 10% penalty on earnings only.
Important Information for Texas Residents
Tax laws in Texas can change annually. This calculator is updated regularly to reflect the latest 2026 rates and regulations, but you should always verify important financial decisions with a qualified Texas tax professional or CPA.
This tool is designed for informational and educational purposes. While we strive for accuracy using official Texas Department of Taxation data, the results should be used as estimates for planning purposes only. Your actual tax liability may differ based on credits, special circumstances, and legislative changes that occur after our last update.
For filing deadlines, payment schedules, and official forms, visit the Texas Department of Taxation and Finance website. If you have complex tax situations involving multiple states, business income, or significant investment gains, professional guidance is recommended.
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