Maryland 529 Plan Calculator
2026Calculate 529 college savings plan growth and tax benefits in Maryland. See MD state tax deduction availability, contribution limits, and projected education savings for 2026.
Written and reviewed by Konstantin Iakovlev · Methodology · Updated
Total College Cost
$176,766.87
With 4% inflation
Projected Savings
$58,861.83
Funding
33%
Funding Gap
$117,905.04
Monthly Needed to Fully Fund
$750.77
529 Plan Projection
| Years Until College | 13 years |
| Total College Cost (with inflation) | $176,766.87 |
| Current Balance | $0.00 |
| Total Contributions | $39,000.00 |
| Investment Growth | + $19,861.83 |
| Projected Savings at College | $58,861.83 |
| Funding Gap | $117,905.04 |
| Monthly Contribution Needed | $750.77 |
Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.
How does a 529 plan work in Maryland?
A 529 plan is a state-sponsored, tax-advantaged investment account designed to fund qualified education expenses. Maryland has a graduated state income tax. Maryland offers a state income tax deduction or credit for contributions to the home-state 529 plan — verify the current cap with the Maryland Department of Revenue.
Earnings inside a 529 grow federally tax-free, and withdrawals used for qualified expenses (tuition, room and board, books, computers, and up to $10,000/year in K-12 tuition) are also federal tax-free. SECURE 2.0 expanded options further: unused 529 funds (held 15+ years) can be rolled to a Roth IRA for the beneficiary, subject to a $35,000 lifetime cap and annual Roth IRA contribution limits. Non-qualified withdrawals trigger ordinary income tax on earnings plus a 10% penalty.
When choosing a plan, weigh the Maryland state tax benefit against expense ratios, age-based portfolio quality, and direct-sold vs. advisor-sold fee structures. Direct-sold plans typically have the lowest fees. The calculator above projects future balance assuming compound growth and consistent contributions through the beneficiary's college years.
Maryland 529 plan: name, manager, and tax benefit
- Plan name
- Maryland 529 (Maryland College Investment Plan + Maryland Prepaid College Trust)
- Plan manager
- T. Rowe Price (Investment) + Maryland Treasurer (Prepaid)
- State tax benefit
- Up to $2,500 per beneficiary per account holder per year deductible
Maryland offers two 529 programs: Maryland College Investment Plan (T. Rowe Price-managed savings) and Maryland Prepaid College Trust (state-managed prepaid tuition contracts at Maryland public colleges). The deduction is $2,500 per beneficiary per account holder per year — meaning a couple can deduct $5,000 total, with 10-year carryforward for unused amounts. The Maryland Prepaid Trust ran into solvency concerns in 2022; new enrollment was suspended though existing contracts were honored.
Maryland Tax & Education Facts (2026)
| State Income Tax | progressive (up to 6.5%) |
| 529 State Tax Deduction | Check state plan details |
| State Sales Tax | 6% |
| Avg. Property Tax Rate | 0.99% |
Maryland 529 plan — frequently asked questions
What can 529 plan funds be used for?
Qualified expenses include college tuition, room and board, books, supplies, computers, and required equipment. Up to $10,000/year can also be used for K-12 tuition. Up to $35,000 lifetime can be rolled to a Roth IRA for the beneficiary.
What are the tax benefits of a 529 plan?
Earnings grow tax-free and withdrawals for qualified education expenses are tax-free. Over 30 states also offer a state income tax deduction or credit for contributions.
What happens to a 529 plan if my child does not go to college?
You can change the beneficiary to another family member, use it for trade schools or apprenticeship programs, roll up to $35,000 into a Roth IRA (after 15 years), or withdraw the funds with a 10% penalty plus taxes on earnings.