529 Plan Comparison by State: Every Plan Rated and Ranked
Updated 30 March 2026
Not all 529 plans are created equal. The difference between the best and worst state plans can cost your family tens of thousands of dollars over 18 years. A plan charging 0.10% in expenses on a $100,000 balance costs $100 per year. A plan charging 0.70% costs $700 per year. Over 18 years with continued growth and contributions, that fee gap compounds to $15,000 or more in lost returns. Add in the state tax benefit difference (some states offer unlimited deductions, others offer nothing) and the total impact can exceed $40,000.
Every state sponsors at least one 529 plan, and you are never required to use your home state's plan. A California resident can invest in Utah's my529 plan and access some of the lowest fees in the country. The only reason to choose your home state's plan is if it offers a state tax deduction or credit for contributions. If your state offers no tax benefit (California, Delaware, Hawaii, Kentucky, Maine, New Jersey, North Carolina), you should shop nationally for the lowest fees and best investment options.
Top 10 State 529 Plans
#1 Utah (my529)
Consistently rated #1 by multiple outlets. Vanguard and Dimensional funds. No advisor-sold version.
#2 Nevada (Vanguard 529)
Low Vanguard index funds. Excellent for residents of no-deduction states. No state tax benefit but best-in-class fees.
#3 Illinois (Bright Start)
Vanguard index funds with some of the lowest fees in the country. Generous state tax deduction.
#4 New York (529 Direct)
Vanguard index options. One of the largest plans by assets. $520,000 maximum contribution.
#5 Indiana (CollegeChoice Direct)
The 20% tax credit is among the most generous in the country. Worth up to $1,500 per year in direct tax savings.
#6 Pennsylvania (PA 529 IP)
Very high $511,758 maximum. Generous per-beneficiary deduction. Accepts deductions for any state plan.
#7 South Carolina (Future Scholar)
Unlimited state tax deduction is extremely valuable for high earners. Columbia Threadneedle managed.
#8 Colorado (Direct Portfolio)
Full deduction with no cap. Vanguard-based options in the direct plan.
#9 Virginia (Invest529)
Good variety of options. $4,000 limit per account is moderate. Unlimited for contributors age 70+.
#10 Ohio (CollegeAdvantage)
Vanguard options. Per-beneficiary deduction. Solid mid-range plan.
States With the Weakest 529 Benefits
These states either offer no tax deduction for 529 contributions, charge above-average fees, or both. Residents of these states should seriously consider investing in a top-rated out-of-state plan instead. You do not lose any federal tax benefits by choosing an out-of-state 529. The only thing you give up is the state tax deduction, and if your state does not offer one, there is nothing to lose.
California (ScholarShare 529)
C+No state tax deduction despite high state income tax rates (up to 13.3%). Fees are reasonable (0.08-0.44%) but the missed tax benefit is significant for CA residents.
Delaware (DE529 Education Savings Plan)
CNo state tax deduction. Limited investment options. Fidelity-managed but the plan lacks the incentive structure of top-tier states.
Hawaii (HI529)
CNo state tax deduction. Relatively high fees for a direct-sold plan. Small plan with limited investment choices.
Kentucky (KY Saves 529)
CNo state tax deduction. Relatively new plan (relaunched 2023). Limited track record.
New Jersey (NJBEST 529)
C-No state income tax deduction on contributions. However, NJ does offer a state grant program for lower-income families contributing to NJBEST.
Best Out-of-State 529 Plans
If you live in a state with no tax deduction for 529 contributions, or your home state's plan charges high fees, these are the five best options to consider. All are direct-sold (no advisor commission), use low-cost index funds, and have strong track records. You can open an account online from any state in under 15 minutes.
| Plan | Best For | Expense Ratio |
|---|---|---|
| Utah my529 | Lowest fees overall. Index fund investors. | 0.10-0.19% |
| Nevada Vanguard 529 | Vanguard loyalists. Simple three-fund portfolio fans. | 0.13-0.17% |
| Illinois Bright Start Direct | Ultra-low cost. Some funds at 0.07% expense ratio. | 0.07-0.37% |
| New York 529 Direct | Large plan stability. Vanguard-based. $520K max. | 0.12-0.17% |
| California ScholarShare | Diverse fund lineup. Age-based and static options. | 0.08-0.44% |
How to Choose: In-State vs Out-of-State
The decision comes down to a simple calculation. Take your state's tax deduction limit, multiply by your marginal state tax rate, and compare that annual tax savings to the fee difference between your state plan and the best out-of-state option. For example, if your state offers a $5,000 deduction and your marginal state tax rate is 6%, you save $300 per year in state taxes. If your state plan charges 0.40% and Utah charges 0.15%, the fee difference on a $50,000 balance is $125 per year. In this case, the $300 tax savings exceeds the $125 fee premium, so your in-state plan wins. As the balance grows, recalculate. At a $200,000 balance, the fee difference reaches $500 per year, which may exceed the tax benefit.
Pennsylvania stands out as uniquely flexible: it allows state tax deductions for contributions to any 529 plan, not just the Pennsylvania plan. Pennsylvania residents can invest in Utah's low-fee plan and still claim the $16,000 per beneficiary state deduction. Arizona and Kansas also allow deductions for contributions to any state's 529 plan.
A final consideration: some states allow you to deduct contributions to multiple state plans. If your state offers a $5,000 per-account deduction and you open accounts at both your in-state plan and an out-of-state plan, you may be able to deduct contributions to both. Check your state's specific rules, as this varies. Working with a tax advisor for the initial setup can save significant money over the life of the plan.