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Colorado 529 Plan Tax Deduction 2026: $25,400 ($38,100 Joint)

Updated October 4, 2026. Quick answer: Yes, for CollegeInvest plans. Colorado’s Department of Revenue says “Qualifying taxpayers can claim a subtraction on their Colorado income tax returns”, up to $25,400 for a single filer and $38,100 joint per beneficiary for 2025.

What Colorado allows for 529 contributions

ItemWhat the documents say
TreatmentSubtraction from income
Limit2025: $25,400 per beneficiary single; $38,100 per beneficiary joint
BasisPer beneficiary, covering all 529 and ABLE contributions for that beneficiary
Plans that qualifyCollegeInvest plans; plans of other states do not qualify
Not-qualified withdrawalsAdded back as the CollegeInvest recapture amount
SourceColorado Department of Revenue, CollegeInvest contribution subtraction page

A $10,000 contribution by a married couple

A married couple filing jointly who put $10,000 into a CollegeInvest account for one child can subtract the whole $10,000, because it is far below the $38,100 limit for 2025.

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The limit is per beneficiary

The Department explains: “The limitation applies on a per beneficiary basis”. The limit is indexed, and the page prints the 2025 figures.

Other states’ plans and add-backs

The page says “Payments or contributions made to a qualified state tuition program established” by another state do not qualify. When money leaves a plan for a nonqualified use, “the account holder must add to the federal taxable income” the recapture amount.

What the documents do not say

  • Whether excess contributions carry forward to a later year.

What changes in 2026

The limit is indexed each year. The page prints 2025 figures and no 2026 figure.

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

  • Using the limit from the 2025 table on a 2026 return; the amounts are indexed.

Related: how Colorado taxes retirement income, whether Colorado taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.

Sources

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.

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