529 Plans

North Carolina 529 Plan Rules

North Carolina's plan is NC 529 Plan. North Carolina does not currently offer a deduction for contributions. North Carolina's plan counts K-12 expenses up to $20,000 a year as qualified and says no part of a qualified withdrawal is included in North Carolina taxable income.

Plan: NC 529 Plan
State tax break: North Carolina does not currently offer a deduction for contributions.
K-12 withdrawals: State tax-free
Detail: North Carolina's plan counts K-12 expenses up to $20,000 a year as qualified and says no part of a qualified withdrawal is included in North Carolina taxable income.
Maximum balance: $600,000 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?

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Frequently asked questions

Does North Carolina give a tax deduction for 529 contributions?

North Carolina does not currently offer a deduction for contributions.

Can I use a North Carolina 529 plan for tutoring?

Federal law allows it, and this state follows the federal treatment of K-12 withdrawals. North Carolina's plan counts K-12 expenses up to $20,000 a year as qualified and says no part of a qualified withdrawal is included in North Carolina taxable income. 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 North Carolina 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. North Carolina's plan counts K-12 expenses up to $20,000 a year as qualified and says no part of a qualified withdrawal is included in North Carolina taxable income.

What is the maximum balance in a North Carolina 529 plan?

$600,000 per beneficiary.

State rules: NC 529 Plan 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.