California 529 Plan Calculator: ScholarShare, Tax Rules, and How Much to Save

California gives no state tax deduction for 529 contributions, so the only thing that matters is fees and growth. The good news: ScholarShare 529, the state's direct-sold plan, is already one of the cheapest in the country. Project your UC or CSU costs and monthly savings target below.

Updated June 2026

California 529 at a glance (2026)

State Tax Deduction

None

1 of 5 no-deduction states

ScholarShare Fees

0.04-0.42%

among the lowest nationally

Max Balance

$529,000

aggregate per beneficiary

Plan Rating

5 / 5

Saving for College

529 College Savings Projector

Adjust the sliders to model your savings scenario. All projections use 2026 data.

Child's Current Age: 2 years old

NewbornAge 17

State of Residence

Current 529 Balance: $5,000

$0$200,000

Monthly Contribution: $300

$0$2,000/mo

Target Institution Type

Investment Risk Level

Years to College

Projected Annual Cost

$59,565

per year at enrollment

Total 4-Year Cost

$238,258

Projected 529 Balance

$120,955

Shortfall

$117,303

below target

Needed Monthly

$633

to fully fund goal

Investment Growth Breakdown

Total contributions$62,600

Tax-free investment growth+$58,355

Projected balance$120,955

529 vs Taxable Account Comparison

529 plan balance (tax-free growth)$120,955

Taxable account balance (4.5% after-tax return)$94,392

529 tax advantage+$26,563

State Tax Benefit: New York

$5,000/$10,000

Rating: A

California 529 Tax Rules

California is unusual: it has one of the highest top marginal income tax rates in the nation yet offers no state income tax deduction or credit for 529 contributions. That puts it alongside Delaware, Hawaii, Kentucky, and North Carolina as the only income-tax states with no 529 deduction. The entire tax advantage of a California 529 is federal.

What you do get

Federal tax-free growth and withdrawals for qualified higher-education expenses.
A $35,000 lifetime 529-to-Roth IRA rollover under SECURE 2.0 (account open 15+ years).
Front-loading via superfunding: $95,000 single or $190,000 married per beneficiary.

What you do not get

No California income tax deduction or credit for contributions.
California does not conform to the federal K-12 rules, so K-12 withdrawals can be taxed by the state plus a 2.5% additional state tax on earnings.
No in-state advantage to keep you in ScholarShare, so choose on fees and funds alone.

Source: California Franchise Tax Board (no qualified tuition program deduction); IRS Publication 970. See the full state-by-state deduction table.

ScholarShare 529: California's Direct-Sold Plan

Because there is no California deduction to give up, the only reason to leave ScholarShare would be lower fees or better funds elsewhere, and ScholarShare gives you little reason to look. Its total annual asset-based fees run roughly 0.04% to 0.42% depending on the portfolio, putting it shoulder to shoulder with the cheapest national plans. Saving for College rates it 5 out of 5 (Top of the Class).

Expense ratio

0.04-0.42%

less than half the national average

Max balance

$529,000

aggregate per beneficiary

Manager

TIAA-CREF

California's official 529

Source: Saving for College ScholarShare 529 plan profile; ScholarShare 529 plan description, 2026. See how it compares in the best 529 plans rankings.

What College Costs in California

California families have two very different public systems to plan for. A University of California education runs roughly three times a California State University one once living costs are included. Tuition has historically risen 5-8% per year, so a newborn today could face a four-year UC bill well above $250,000 by the time they enroll.

System	Tuition & Fees	Total Annual Cost	Basis
UC (resident, on campus)	$17,388	$47,388	2026-27 systemwide estimate
CSU (resident)	$6,450	Varies by campus	2025-26 systemwide tuition

Sources: University of California, 2026-27 estimated cost of attendance (resident, on campus); California State University systemwide tuition, 2025-26. Total cost of attendance includes housing, food, books, and personal expenses and varies by campus.

In-state vs best national

Should you actually use your home state's 529 plan?

A state tax deduction is only worth taking if it beats the fee drag of staying in a pricier in-state plan. Enter your numbers and we'll weigh your deduction against the cheapest national plan (about 0.10% all-in).

Your state

Annual 529 contribution

Years until college

yrs

Your in-state plan's expense ratio

Expected annual return

Not sure of your plan's expense ratio? Direct-sold age-based portfolios typically run 0.10%-0.40%. Check your plan's fee disclosure.

California 529 Frequently Asked Questions

Does California give a state tax deduction for 529 contributions?+

No. California is one of only five income-tax states (with Delaware, Hawaii, Kentucky, and North Carolina) that offers no state income tax deduction or credit for 529 plan contributions, despite having one of the highest top income tax rates in the country. The benefit of a California 529 is entirely federal: investment growth is free of federal tax when used for qualified education expenses. Because there is no in-state deduction to chase, California residents are free to pick any state's plan purely on fees and fund quality.

Should California residents use ScholarShare 529 or an out-of-state plan?+

ScholarShare 529, California's direct-sold plan, is already one of the lowest-cost 529 plans in the country, with total annual asset-based fees of roughly 0.04% to 0.42% depending on the portfolio. Saving for College rates it 5 out of 5 (Top of the Class). Because there is no California deduction to give up by going out of state, the decision is purely about fees and investment options, and ScholarShare is competitive with the cheapest national plans such as Utah my529 and the Vanguard 529. For most California families there is little reason to leave ScholarShare.

How much does college cost in California, and how much should I save?+

For 2026-27 the University of California estimates a resident undergraduate living on campus will spend about $47,388 per year all-in, of which roughly $17,388 is tuition and campus fees. A California State University education costs much less: systemwide tuition is $6,450 per year, with total cost of attendance varying by campus and housing. Tuition has historically risen 5-8% per year, so a newborn today could face a four-year UC bill well above $250,000 by enrollment. Use the calculator above to model your child's age, target school, and monthly contribution.

What is the maximum I can contribute to a California 529?+

ScholarShare 529 accepts contributions until all accounts for the same beneficiary across California's 529 plans reach an aggregate balance of $529,000. There is no annual contribution limit set by the plan itself, but contributions interact with federal gift tax rules: in 2026 the annual gift tax exclusion is $19,000 per person ($38,000 for a married couple), and superfunding lets a single contributor front-load $95,000 ($190,000 married) in one year using five-year gift tax averaging.

Can California 529 funds be used for K-12 or out-of-state colleges?+

Yes to out-of-state colleges: a California 529 can pay for qualified expenses at any eligible institution nationwide, not just California schools. K-12 is more complicated. The federal One Big Beautiful Bill Act raised the K-12 tuition withdrawal limit to $20,000 per year from 2026, but California does not conform to the federal K-12 rules, so K-12 withdrawals can trigger California state income tax and a 2.5% additional state tax on earnings even though they are federally tax-free. Confirm the state treatment before taking a K-12 withdrawal.

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By Oliver Wakefield-Smith. Independent 529 education savings resource, not affiliated with ScholarShare 529, the State of California, or any plan provider.