529 Plans
New Jersey 529 Plan Rules
New Jersey's plan is NJBEST. New Jersey allows a deduction of up to $10,000 a year for NJBEST contributions, only for taxpayers with gross income of $200,000 or less. New Jersey follows the federal rule for K-12 tuition. Its notice predates the 2025 federal expansion and says nothing about the newer expenses, including tutoring.
- Plan
- NJBEST
- State tax break
- New Jersey allows a deduction of up to $10,000 a year for NJBEST contributions, only for taxpayers with gross income of $200,000 or less.
- K-12 withdrawals
- Not settled
- Detail
- New Jersey follows the federal rule for K-12 tuition. Its notice predates the 2025 federal expansion and says nothing about the newer expenses, including tutoring.
- Maximum balance
- $525,000 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?
Frequently asked questions
Does New Jersey give a tax deduction for 529 contributions?
New Jersey allows a deduction of up to $10,000 a year for NJBEST contributions, only for taxpayers with gross income of $200,000 or less.
Can I use a New Jersey 529 plan for tutoring?
Federal law allows it, but this state has not clearly said how it treats the newer K-12 expenses. New Jersey follows the federal rule for K-12 tuition. Its notice predates the 2025 federal expansion and says nothing about the newer expenses, including tutoring. 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 New Jersey 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. New Jersey follows the federal rule for K-12 tuition. Its notice predates the 2025 federal expansion and says nothing about the newer expenses, including tutoring.
What is the maximum balance in a New Jersey 529 plan?
$525,000 per beneficiary.
State rules: NJBEST 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.
