Using 529 Savings Plans for Private School Tuition

Many families use 529 plans to save for college—but they can also be used for K–12 education. Since 2018, federal law has allowed tax-free withdrawals of up to $10,000 per year to pay tuition at private, public, or religious elementary and secondary schools. Now new legislation makes it possible for families to pay for even more K-12 expenses with a 529 plan.

The legislation makes two changes:

• The definition of qualified education expenses has been expanded to include a number of new expenses for elementary and secondary students in addition to tuition.
• The annual withdrawal limit for K-12 expenses will increase to $20,000 per student starting in tax year 2026.

Not all states treat distributions for K-12 expenses as qualified for state tax purposes. This means some withdrawals may be subject to state taxes.

This guide explains how 529 plans can be used for private school tuition, which states allow it, and the pros and cons of using a 529 for K-12 education to help you make an informed decision.

In this article

• 529 plans can be used for private elementary and high school tuition
• States that don’t consider K-12 tuition a qualified expense
• Pros and cons of using a 529 plan for private school expenses

You Can Use 529 Plans for Private Elementary and High School Tuition

The Tax Cuts and Jobs Act, signed into law in December 2017, allowed families to use 529 plans to pay up to $10,000 in tuition expenses at elementary or secondary public, private, or parochial schools. The changes became effective January 1, 2018.

The annual limit will increase to $20,000 per year due to the One Big Beautiful Bill Act starting in 2026.

FREE TOOL

529 Savings Calculator for Private K-12 Tuition

Federal Tax Benefits

Before the Act, 529 qualified expenses were limited to costs associated with attendance or enrollment at a college, university, or other accredited post-secondary institution.

As of July 4, 2025, 529 plan funds can now be used for a broader range of K–12 education-related expenses, not just tuition. These may include:

• Curriculum materials (e.g., textbooks, workbooks, digital tools)
• Tutoring services (must meet eligibility requirements)
• Online education subscriptions
• Educational therapies for students with disabilities
• Standardized test fees (SAT, ACT, AP)
• Dual-enrollment fees for college courses taken during high school

These additional qualified expenses offer greater flexibility, particularly for families using alternative education models.

Note that these changes apply to distributions made after July 4, 2025, and may require state-level adoption to receive full tax benefits.

Private School Tuition Might be a State Tax Deduction

Over 30 states offer a tax credit or deduction for contributions to a 529 savings plan. In most cases, the contributor must use their home state’s plan to qualify. Still, families who live in Arizona, Arkansas, Kansas, Maine, Minnesota, Missouri, Montana, Ohio, and Pennsylvania can claim a tax deduction for contributions to any state’s 529 plan. Maximum deductions and credits vary by state. 

These state tax breaks only apply if the withdrawal is for expenses the state considers qualified, which may not include K-12 tuition.

States are currently reviewing the impact of the federal tax change to determine whether updates to state law are required. At the state level, non-qualified withdrawals may be subject to state income tax and, in some cases, a penalty on the earnings portion. You may also have to repay any deductions or credits claimed.

States That Don’t Consider K-12 Tuition a Qualified Expense

Not all states have conformed to these federal updates. States may need to revise their laws to align with the new eligible expenses and higher cap. Check with your state’s plan administrator for the latest guidance.

Keep in mind that state laws may change at any time. We will continue monitoring this and keep the list as up-to-date as possible. For the most up-to-date information, see our 529 comparison tool.

Selecting a 529 Plan

When deciding which plan to use for private school education funding, you’ll want to start by exploring your home state’s plan. This is because more than 30 states offer a tax credit or deduction for 529 plan contributions, and most require you to use your in-state plan. However, Arizona, Arkansas, Kansas, Maine, Minnesota, Missouri, Montana, Ohio, and Pennsylvania residents can claim a deduction for contributions to any state’s 529 plan.

No specific 529 portfolios are designed for private K-12 education funding, but that doesn’t mean you can’t find suitable investments. With less time to recover from a market downturn, you want to explore conservative options such as a money market or a stable value portfolio.

How Much to Save for K-12 Tuition

To create an effective 529 funding strategy, you’ll need to determine how much is needed to fund the lesser of the total tuition liability or the maximum allowable withdrawal amounts, so that you will end up with a $0 account balance after paying the final year of private school tuition. This could be achieved with an initial lump sum deposit, monthly contributions, or a combination.

For many people, annual expenses will exceed the $10,000 tax-free withdrawal limit. According to the Private School Review, private school tuition costs for the 2023-24 school year ranged from $3,926 – $29,363 for elementary school and $5,745 – $41,805 for high school.

Beginning in tax year 2026, the annual withdrawal limit for K–12 expenses has increased from $10,000 to $20,000 per child. This expanded cap allows families to address rising education costs better.

Any cost gaps that 529 plan savings won’t cover must be paid with current income, scholarships, financial aid, or other sources. To help you calculate how much to save in a 529 plan, we’ve developed the 529 Savings Calculator for Private K-12 Tuition.

When You Might Want to Use Your 529 Plan for Private Tuition

Often, using a 529 plan for private school when your child is young can mean you miss out on potential tax benefits. However, there are some circumstances when using the 529 for primary or secondary expenses makes sense. For example, it may emerge that your child won’t need all the funds for college, whether they decide not to pursue higher education, want to attend an affordable college, or look likely to get a scholarship.

In this case, if you are already paying for a private school and don’t have another child whom you could make the plan’s beneficiary, it may make sense to use some of the 529 for their secondary school tuition. This could also be the case if you’ve earned substantial gains through the 529 plan and want to use them with qualified distributions, such as elementary or secondary school tuition.

Using the 529 to pay for elementary or secondary school can also benefit you if you get tax benefits. If your state gives a tax deduction for 529 plan contributions, you can capture a deduction by paying your child’s school fees into a 529 plan before withdrawing the funds and using them to pay tuition. You’ll pay the same expense you were planning to pay anyway, but you’ll benefit from a tax deduction and may even get a credit.

With the new $20,000 annual cap starting in 2026, it may become more practical for some families to use 529 funds for K–12 tuition without jeopardizing college savings goals.

Homeschooling Expenses

Previously, only private school tuition (not other fees) qualified for tax-free 529 withdrawals. Starting July 4, 2025, certain educational expenses, like curriculum and tutoring, may also qualify at the federal level. However, homeschooling costs are still not broadly recognized unless your state treats homeschooling as a form of private school.

There is no provision to use 529 plan funds for homeschooling expenses, but some states classify homeschooling as a type of private school. If you live in one of these states – Alaska, Indiana, Kansas, Kentucky, or Texas – you may be able to use funds from your 529 plan to cover certain homeschooling expenses that meet the same criteria as tuition.

Alternatives to Pay for Private School

There are other types of plans and education savings accounts to help pay for private school tuition that you can use to cover a broader range of educational expenses, no matter where you live. For example, Coverdell ESAs allow you to use funds for qualified education expenses. However, these plans have strict contribution limits, so comparing all options is important to determine the best for your situation.

Pros and Cons of Using 529 Plans for Private School

When weighing any important financial decision, you’ll want to look at the positives and negatives of moving forward. The pros and cons of using your 529 plan for private tuition could vary by person, as your financial situation could change the impact. Let’s look at the most generic pros and cons of making this decision that are relevant for everyone. 

Ultimately, whether you should choose to use a 529 plan to pay for private school expenses depends on your family’s situation. Some factors to weigh with the pros and cons above include: 

• How much you have in 529 assets
• How much do you plan to add to your 529 plan
• How much do you think you’ll need to pay for your child’s college education
• Your state’s tax rules around 529 disbursements

Frequently Asked Questions (FAQs) for 529 Plans and Private Tuition

We’ve compiled some of the most important and frequently asked questions regarding using a 529 plan for private tuition and answered each below. 

Can you use 529 for private school K-12 expenses?

Under the federal tax code, the IRS considers K-12 school tuition a qualified distribution for 529 plans. Starting July 4, 2025, additional K–12 costs such as curriculum, tutoring, and online platforms may also qualify at the federal level, though state treatment may vary. Private school tuition may or may not be a qualified distribution for state tax, depending on where you live, as rules vary by state.

Can I use 529 account for private tutoring?

As of July 4, 2025, some tutoring services may now qualify if they meet federal requirements. Check with a tax or financial professional to confirm they qualify.

Can 529 be used for private high schools in California?

Although California residents can access the same federal tax benefits of using a 529 for higher education, their state tax will be adversely affected. California considers 529 withdrawals for secondary school tuition a non-qualified distribution and even imposes a penalty. 

Can I use the proceeds of a 529 plan for homeschooling?

You might be able to use a 529 plan to cover homeschooling, depending on the state that you live in. Some states consider homeschooling a type of private school, so you may be able to claim qualified expenses related to your child’s homeschooling. The states that allow this type of expense are currently: 

• Alaska
• Indiana
• Kansas
• Kentucky
• Texas

Curriculum and digital tools may qualify under the new rules, but eligibility will depend on state interpretation.

Bottom Line

Your 529 plan can pay for private school K-12 tuition and other expenses. Whether you pay taxes for the withdrawals depends on your state, and whether you should do it depends on your financial situation.

Before making withdrawals, check your state’s rules and run the numbers to see if it benefits your family’s situation. If unsure, consult a financial advisor to explore the best strategy for maximizing your 529 plan.

Find out about your state’s plan

FIND A 529 PRO

Related articles

Don’t count on a 529 state tax break for K-12 tuition

New tax law brings big changes to 529 plans

Final GOP tax bill expands 529 plans: Here’s who will benefit