Texas 529 Plan Calculator
2026Calculate 529 college savings plan growth and tax benefits in Texas. See TX 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 Texas?
A 529 plan is a state-sponsored, tax-advantaged investment account designed to fund qualified education expenses. Texas has no state income tax, so there's no state-level deduction or credit to chase — buyers in Texas are free to choose any state's 529 plan based on investment options, fees, and performance rather than residency.
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 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.
Texas 529 plan: name, manager, and tax benefit
- Plan name
- Texas College Savings Plan + LoneStar 529 Plan + Texas Tuition Promise Fund
- Plan manager
- NorthStar Asset Management
- State tax benefit
- None — no state income tax means no state contribution deduction
Texas's Texas College Savings Plan + LoneStar 529 Plan + Texas Tuition Promise Fund (administered by NorthStar Asset Management) is open to any U.S. resident — there are no state income-tax benefits because Texas has no state income tax. Plan funds grow federal-tax-free if used for qualified higher-education expenses (tuition, room/board, books, computers) and the SECURE 2.0 Act allows up to $35,000 of unused 529 funds to be rolled over to a Roth IRA for the beneficiary (after a 15-year account holding period and subject to annual Roth contribution limits). State plans typically offer expense ratios well below retail mutual funds.
Texas Tax & Education Facts (2026)
| State Income Tax | None |
| 529 State Tax Deduction | N/A (no state income tax) |
| State Sales Tax | 6.25% |
| Avg. Property Tax Rate | 1.68% |
Texas 529 plan — frequently asked questions
What is Texas's 529 plan?
Texas has THREE 529 plans: (1) Texas College Savings Plan — Northstar-managed savings 529. (2) LoneStar 529 Plan — advisor-sold variant. (3) Texas Tuition Promise Fund (TTPF) — prepaid tuition contracts at Texas public universities. All three are open to non-Texas residents. No state income tax in Texas, so no state-tax benefits — Texas residents choose plans based on investment quality.
How does the Texas Tuition Promise Fund (TTPF) work?
TTPF is a state-administered PREPAID tuition program (not investment-based). You purchase "tuition units" at today's prices that are guaranteed to cover the same percentage of in-state public university tuition + required fees in the future, regardless of how much tuition rises. Operated by the Texas Prepaid Higher Education Tuition Board. Enrollment open annually. Risk: if your child attends a private or out-of-state school, the redemption value may be lower than TTPF's guaranteed in-state value.
Does Texas have any state-tax benefit for 529 contributions?
No. Texas has no state income tax, so there's no state-tax deduction or credit for 529 contributions. Texas residents using a 529 plan benefit only from FEDERAL tax-free growth and tax-free qualified distributions. No state-tax deduction means Texas residents have no in-state preference and can choose ANY state's 529 plan based on investment quality and fees.
Can I use a Texas 529 plan for K-12 tuition?
Yes. Federal SECURE Act (2018) allows up to $10,000/year in 529 distributions for K-12 tuition (private or religious schools). Texas allows this without recapture (since there's no state deduction to recapture). For Texas families paying private K-12 tuition, the 529 provides federal tax-free growth on funds held for several years — useful planning tool.