529 Plans

California 529 Plan Rules

California's plan is ScholarShare 529. California gives no state income tax deduction or credit for 529 contributions. California does not follow the federal K-12 rules. The earnings portion of any K-12 withdrawal, including one for tutoring, is subject to California income tax plus an additional 2.5% California tax.

Plan: ScholarShare 529
State tax break: California gives no state income tax deduction or credit for 529 contributions.
K-12 withdrawals: Taxed by the state
Detail: California does not follow the federal K-12 rules. The earnings portion of any K-12 withdrawal, including one for tutoring, is subject to California income tax plus an additional 2.5% California tax.
Maximum balance: $529,000 per beneficiary
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?

Email me the California 529 rules

The state and federal rules on this page, to share with whoever does your taxes.

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Frequently asked questions

Does California give a tax deduction for 529 contributions?

California gives no state income tax deduction or credit for 529 contributions.

Can I use a California 529 plan for tutoring?

Federal law allows it, but this state taxes K-12 withdrawals. California does not follow the federal K-12 rules. The earnings portion of any K-12 withdrawal, including one for tutoring, is subject to California income tax plus an additional 2.5% California tax. 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 California 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. California does not follow the federal K-12 rules. The earnings portion of any K-12 withdrawal, including one for tutoring, is subject to California income tax plus an additional 2.5% California tax.

What is the maximum balance in a California 529 plan?

$529,000 per beneficiary.

State rules: ScholarShare 529 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.