529 Plans
Arizona 529 Plan Rules
Arizona's plan is AZ529. Arizona allows a subtraction of up to $2,000 per beneficiary a year, or $4,000 for a married couple filing jointly, for contributions to any state's plan. Arizona's plan says qualified withdrawals are free of federal and state tax and lists the expanded K-12 expenses. We did not find a statement from the Arizona Department of Revenue confirming that for the newer expenses.
- Plan
- AZ529
- State tax break
- Arizona allows a subtraction of up to $2,000 per beneficiary a year, or $4,000 for a married couple filing jointly, for contributions to any state's plan.
- K-12 withdrawals
- Not settled
- Detail
- Arizona's plan says qualified withdrawals are free of federal and state tax and lists the expanded K-12 expenses. We did not find a statement from the Arizona Department of Revenue confirming that for the newer expenses.
- Maximum balance
- $609,000 per beneficiary through September 2026; no newer figure posted
- Federal K-12 limit
- $20,000 a year per student
For the federal conditions on tutoring and the full list of K-12 expenses, see Can you use a 529 plan for tutoring?
Frequently asked questions
Does Arizona give a tax deduction for 529 contributions?
Arizona allows a subtraction of up to $2,000 per beneficiary a year, or $4,000 for a married couple filing jointly, for contributions to any state's plan.
Can I use a Arizona 529 plan for tutoring?
Federal law allows it, but this state has not clearly said how it treats the newer K-12 expenses. Arizona's plan says qualified withdrawals are free of federal and state tax and lists the expanded K-12 expenses. We did not find a statement from the Arizona Department of Revenue confirming that for the newer expenses. Under the federal rule, the tutor cannot be related to the student and must be a licensed teacher, have taught at an eligible educational institution, or be a subject matter expert.
Can I use a Arizona 529 plan for private school or other K-12 costs?
Federal law allows up to $20,000 a year per student for K-12 tuition and the other listed expenses. Arizona's plan says qualified withdrawals are free of federal and state tax and lists the expanded K-12 expenses. We did not find a statement from the Arizona Department of Revenue confirming that for the newer expenses.
What is the maximum balance in a Arizona 529 plan?
$609,000 per beneficiary through September 2026; no newer figure posted.
State rules: AZ529 official documents. Federal rules: IRS Tax Topic 313 and Public Law 119-21. Read October 6, 2026. This page is general information, not tax advice.
