Updated October 4, 2026. Quick answer: Yes, as a credit rather than a deduction. The Department of Revenue describes a “refundable tax credit for the 2025 tax year of up to $180” ($360 if married filing jointly), and for 2026 says “the credit limit will be $190 ($380 if married filing jointly)”.
What Oregon allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Refundable tax credit (not a deduction) |
| Limit, 2025 | Up to $180; $360 if married filing jointly |
| Limit, 2026 | Up to $190; $380 if married filing jointly |
| Plans that qualify | An Oregon higher education savings plan account (ORS 178.300 to 178.360) |
| Not-qualified withdrawals | The prior credit is forfeited and the taxes remitted on a nonqualified withdrawal or a withdrawal for elementary or secondary school expenses |
| Source | Oregon Department of Revenue, tax benefits for families; ORS 315.653 |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into an Oregon account for one child can claim a credit of at most $380 for 2026 ($360 for 2025), however large the contribution. The Department says “Your AGI determines the percentage of your contribution”, so the actual credit may be smaller. ORS 315.650(2) sets the credit by adjusted gross income: the amount contributed if AGI does not exceed $30,000; 50 percent if AGI exceeds $30,000 but not $70,000; 25 percent if AGI exceeds $70,000 but not $100,000; 10 percent if AGI exceeds $100,000 but not $250,000; and 5 percent if AGI exceeds $250,000. The credit is the lesser of that figure or the credit limit.
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Which plans, and when the credit is forfeited
The statute ties the credit to “a savings network account for higher education established under ORS 178.300 to”. Under ORS 315.653 the prior credit “shall be forfeited if any of the following are taken”, and a nonqualified withdrawal is one of them.
What the documents do not say
- Whether excess contributions carry forward to a later year.
What changes in 2026
For tax year 2026 the credit limit will be $190 ($380 if married filing jointly), up from $180 ($360) for 2025.
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
- Treating the credit as a deduction; it comes off the tax bill, not the income.
Related: how Oregon taxes retirement income, whether Oregon taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- Tax benefits for families (Oregon higher education savings plan account contributions): https://www.oregon.gov/dor/programs/individuals/pages/credits.aspx
- Oregon Revised Statutes chapter 315 (ORS 315.650 and 315.653): https://www.oregonlegislature.gov/bills_laws/ors/ors315.html
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.