Updated October 4, 2026. Quick answer: Yes. Maryland’s tax code subtracts contributions to its College Investment Plan accounts, and the amount “may not exceed $2,500 for any taxable year per qualified designated beneficiary”. On a joint return, “each spouse on a joint return shall be treated separately”.
What Maryland allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Subtraction from federal adjusted gross income |
| Limit | $2,500 per qualified designated beneficiary per contributor; each spouse on a joint return counts separately |
| Carryforward | Excess may be carried over to the next 10 succeeding taxable years |
| Plans that qualify | The statute names Maryland’s College Investment Plan accounts; no out-of-state plan is mentioned |
| Source | Maryland Tax-General Article 10-208 |
A $10,000 contribution by a married couple
A married couple filing jointly who put $10,000 into a Maryland account for one child: each spouse counts separately at $2,500, so up to $5,000 can be subtracted if both contributed. The excess carries over.
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Carryover
Disallowed excess “carried over until used to the next 10 succeeding taxable years” under the statute.
What the documents do not say
- Whether contributions to another state’s plan qualify.
- What happens to the subtraction on a nonqualified withdrawal.
- A 2025 bill, SB 412, would raise the limit from $2,500 to $4,850; the archived bill status shows it only at first reading and a hearing, and the current statute still reads $2,500. The 2026 session was not checked.
What changes in 2026
No enacted 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
- Subtracting more than $2,500 per beneficiary per contributor.
Related: how Maryland taxes retirement income, whether Maryland taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- Maryland Tax-General Article 10-208 (subtractions from federal AGI): https://mgaleg.maryland.gov/mgawebsite/Laws/StatuteText?article=gtg§ion=10-208&enactments=false
- SB 412 (2025) Fiscal and Policy Note, First Reader: https://mgaleg.maryland.gov/2025RS/fnotes/bil_0002/sb0412.pdf
- SB 412 (2025) legislation details and history: https://mgaleg.maryland.gov/mgawebsite/Legislation/Details/sb0412?ys=2025RS
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.