Iowa529
How Iowa's ISave 529 state tax deduction works in 2026, what it saves, what the money can pay for, and a calculator.
Iowa529 deduction calculator (2026)
Iowa529 (ISave 529) tax deduction
Iowa's 529 plan is now called ISave 529. For 2026, an Iowa taxpayer who owns an ISave 529 account can deduct the first $6,100 contributed per beneficiary account from state taxable income (Iowa Treasurer). The limit is per account owner, so married owners with separate accounts for two children can deduct up to $24,400 (4 × $6,100). At Iowa's 3.8% flat rate that saves about $927. The limit rises with inflation each year.
What the money can pay for
Qualified college costs at colleges, universities, community colleges, trade schools and apprenticeship programs; up to $20,000 a year per student for K-12 expenses; and up to $10,000 of qualified education loan repayment for the beneficiary or a sibling. Earnings are tax-free when used this way. Compare other state plans: Bright Start 529 and Indiana529, or project growth with the 529 calculator.
Common questions
How much can I deduct for Iowa529 in 2026?
Up to $6,100 per beneficiary account for each Iowa taxpayer who owns an account.
Is Iowa529 now ISave 529?
Yes, Iowa's 529 plan is called ISave 529.
Can Iowa529 pay K-12 costs?
Yes, up to $20,000 a year per student.
Sources
More savings and interest calculators: Georgia 529 · Maryland529 · Michigan Education Savings Program
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.