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Alabama taxpayers can get a state tax deduction for contributing up to $5,000 (single) or $10,000 (joint) a year, generally only for the in-state plan. Here are the facts on Alabama's direct-sold 529 plan (the one you open yourself, without an advisor).
Effective for tax years beginning after December 31, 2007, Alabama provides a deduction of up to $5,000 per taxpayer for contributions to the Alabama Prepaid Affordable College Tuition Program or to the Alabama College Education Savings Program. See 40-18-15(a)(28). Effective for tax years beginning after December 31, 2020, Alabama provides a deduction of up to $5,000 per taxpayer for contributions to an Alabama Achieving a Better Life Experience (ABLE) savings account. See 40 -18-15.8.
Summary of state law from the ICI 2025 state tax survey; it may predate 2026 changes.
2026 limits and parity: Savingforcollege. Manager, fees and minimum: only when stated on the plan's homepage text we read (2026-10-12); otherwise 'not found'. Check the plan's disclosure document for exact fees.
Yes: a deduction for up to $5,000 (single) / $10,000 (joint) of contributions in 2026
No. You can use any state's plan; you may lose your state's tax break if your state doesn't offer tax parity.
Estimates, not financial advice. Taxes, insurance, PMI and fees vary by lender, county and city; confirm with your lender, dealer and state agency before acting.