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
| Item | What the documents say |
|---|---|
| Treatment | Subtraction from income |
| Limit | 2025: $25,400 per beneficiary single; $38,100 per beneficiary joint |
| Basis | Per beneficiary, covering all 529 and ABLE contributions for that beneficiary |
| Plans that qualify | CollegeInvest plans; plans of other states do not qualify |
| Not-qualified withdrawals | Added back as the CollegeInvest recapture amount |
| Source | Colorado 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
- Income Tax Topics: CollegeInvest Contribution Subtraction: https://tax.colorado.gov/income-tax-topics-collegeinvest-contribution-subtraction
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.