Updated October 4, 2026. Quick answer: Yes, with a choice of two breaks. Minnesota Revenue says “you may be eligible for a subtraction from income” for 529 contributions: “The maximum subtraction is $3,000 for Married Filing Jointly and $1,500”. An income-limited credit is the alternative: 50% of “contributions made during the year, up to a maximum of $500”.
What Minnesota allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Subtraction, or an income-limited credit instead (not both) |
| Subtraction | $1,500; $3,000 married filing jointly; no income limit |
| Credit | 50% of contributions, up to $500, phasing out with income |
| Plans that qualify | Qualified plans from any state |
| Not-qualified withdrawals | Recapture tax on nonqualified use, reported on Schedule M1529 |
| Source | Minnesota Department of Revenue, education savings account subtraction, credit and recapture pages |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into a 529 plan for one child can subtract $3,000 of it, the joint limit. They could claim the credit instead if their income is within its phase-out range, but not both.
Optional adviser-matching service
Balance education savings with retirement
For U.S. investors with $250,000 or more in investable assets. Want help balancing education savings with retirement? Request adviser introductions for your wider investment plan.
This is investment-adviser matching, not 529 enrollment or tax-return preparation.
WiserAdvisor is an independent matching service. Free to request, with no obligation to hire. Request up to three adviser introductions; a match is not guaranteed. Submitting its form allows calls, texts and emails from WiserAdvisor and up to three advisers.
Clear Money Guide may earn a referral payment for a qualifying completed form. Advisers pay for introductions; an introduction is not a Clear Money Guide recommendation.
Compare investment advisersOpens on WiserAdvisor’s site in a new tab.
Any state’s plan counts
The Department says “Contributions to qualified plans are eligible regardless of which state administers it”.
Recapture
Using the money for something that does not qualify can cost you later: “you may need to pay an additional recapture tax”. The Department’s recapture page explains the calculation.
What the documents do not say
- Whether excess contributions carry forward to a later year.
What changes in 2026
No change for tax year 2026 appears in the documents read for this page.
Federal rules
A state break sits beside the federal rules for 529 plans: the statute is 26 U.S.C. 529 and the IRS explains it in Publication 970, Tax Benefits for Education.
Common mistakes
- Claiming both the subtraction and the credit for the same contributions; the Department says it is one or the other.
Related: how Minnesota taxes retirement income, whether Minnesota taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- Education Savings Account Contribution Subtraction: https://www.revenue.state.mn.us/education-savings-account-contribution-subtraction
- Education Savings Account Contribution Credit: https://www.revenue.state.mn.us/education-savings-account-contribution-credit
- Education Savings Account Recapture Tax: https://www.revenue.state.mn.us/education-savings-account-recapture-tax
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.