Updated October 4, 2026. Quick answer: Yes. Arizona’s statute allows a subtraction of “$2,000 per beneficiary for a single individual or a head of household”, or “$4,000 per beneficiary for a married couple filing a joint return”.
What Arizona allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Subtraction from Arizona gross income |
| Limit | $2,000 per beneficiary single or head of household; $4,000 per beneficiary married filing jointly |
| Plans that qualify | 529 college savings plans; the statute does not limit them to Arizona plans |
| Not-qualified withdrawals | Added back, up to previous subtractions |
| Source | Arizona Revised Statutes 43-1022 and 43-1021; Arizona Form 140 (2025) |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into a 529 account for one child can subtract $4,000, the joint limit per beneficiary. The other $6,000 earns no further subtraction.
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Which plans
The statute refers to “college savings plans established pursuant to section 529 of the” Internal Revenue Code. It does not limit the subtraction to an Arizona plan.
Nonqualified withdrawals
Nonqualified withdrawals are added back: the addition statute covers “The amount of a nonqualified withdrawal, as defined in section 15-1871”, and Form 140 has a line headed “Nonqualified Withdrawals from 529 College Savings Plans”.
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 the subtraction on money you already deducted in figuring federal adjusted gross income.
Related: how Arizona taxes retirement income, whether Arizona taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- A.R.S. 43-1022 Subtractions from Arizona gross income: https://www.azleg.gov/ars/43/01022.htm
- A.R.S. 43-1021 Additions to Arizona gross income: https://www.azleg.gov/ars/43/01021.htm
- Arizona Form 140 Resident Personal Income Tax Return 2025: https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140_f.pdf
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.