Updated October 4, 2026. Quick answer: No state deduction, because there is no state income tax to reduce. The Texas Comptroller says “Texas has no state income tax”.
What Texas allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Not applicable: no state income tax |
| Limit | None |
| Source | Texas Comptroller of Public Accounts |
A $10,000 contribution by a married couple
A married couple who put $10,000 into a 529 account for one child deducts $0 on a Texas return, because there is no Texas income tax return to deduct it on.
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What changes in 2026
No change for 2026 appears in the document 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
- Looking for a Texas deduction form; there is none.
Related: how Texas taxes retirement income, whether Texas taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- Texas is open for small business: https://comptroller.texas.gov/economy/fiscal-notes/industry/2025/small-biz-info/
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.