New Jersey 529 Plan Calculator: NJBEST, the $10,000 Deduction, and How Much to Save
New Jersey gives residents earning $200,000 or less a $10,000 state income tax deduction for NJBEST contributions, plus a $750 matching grant and a scholarship worth up to $6,000. Project your Rutgers or TCNJ costs and monthly savings target below, and see whether staying in NJBEST beats a lower-fee national plan.
Updated June 2026
New Jersey NJBEST 529 at a glance (2026)
State Tax Deduction
$10K
income $200K or less; per return
NJBEST Fees
0.13-0.81%
Franklin Templeton portfolios
Max Balance
$305,000
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.
Years to College
16
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
529 vs Taxable Account Comparison
State Tax Benefit: New York
$5,000/$10,000
Rating: ANew Jersey 529 Tax Deduction Rules
New Jersey is a capped-deduction state with an income test. Taxpayers with gross income of $200,000 or less can subtract up to $10,000 of NJBEST contributions from their New Jersey taxable income each year. At the 6.37% marginal rate that is worth about $637 a year, on top of the federal tax-free growth every 529 gets. The $10,000 cap is per return, so it does not double for a married couple, and it applies only to the in-state NJBEST plan, not to out-of-state 529s.
What you do get
- A $10,000 annual New Jersey income tax deduction for NJBEST contributions (income $200,000 or less).
- A one-time $750 NJBEST matching grant on your first contribution, for eligible lower-income households.
- A tax-free NJBEST Scholarship of up to $6,000 for a beneficiary who attends a New Jersey college.
- Federal tax-free growth, a $35,000 lifetime 529-to-Roth IRA rollover (SECURE 2.0), and superfunding up to $95,000 single / $190,000 married.
What to watch for
- The deduction disappears entirely above $200,000 of gross income, so higher earners get no state break.
- The $10,000 cap is per return, not per spouse, so a joint filer gets the same limit as a single filer.
- NJBEST fees (0.13-0.81%) are higher than the cheapest national plans, so the deduction and grants have to earn their keep.
Source: New Jersey College Affordability Act (deduction from tax year 2022); NJ Division of Taxation; HESAA / NJBEST program materials, 2026; IRS Publication 970. See the full state-by-state deduction table.
NJBEST 529: Franklin Templeton, In-State Perks, Middling Fees
New Jersey's direct-sold plan, NJBEST, is managed by Franklin Templeton and rated 5 out of 5 by Saving for College. It accepts contributions until the beneficiary's New Jersey 529 balances reach $305,000. Its total annual asset-based fees run from about 0.13% to 0.81% depending on the portfolio, which is higher than the 0.10-0.12% you would pay at Utah my529 or the NY 529 Direct Plan. What tips the balance for many New Jersey families is the package of in-state perks: the $10,000 deduction, the $750 matching grant, and the up-to-$6,000 scholarship, none of which travel to an out-of-state plan.
Expense ratio
0.13-0.81%
varies by portfolio
Max balance
$305,000
aggregate per beneficiary
Manager
Franklin Templeton
Saving for College 5 / 5
Source: Saving for College NJBEST 529 profile; Franklin Templeton NJBEST 529 program description, 2026. See how it compares in the best 529 plans rankings.
What College Costs in New Jersey
New Jersey's public universities are mid-priced by national standards. Rutgers-New Brunswick, the flagship, charges residents $14,933 in tuition, or $18,824 once mandatory fees are added, with an on-campus total cost of attendance around $34,156 a year for 2025-26. The College of New Jersey runs higher, at $20,398 in tuition and fees and a total cost near $43,330. Tuition has historically risen 4-6% per year, so a newborn today could face a four-year in-state public bill well above $150,000 by the time they enroll, and a private New Jersey university such as Princeton several times that.
| School | Tuition + Fees | Total Annual Cost | Basis |
|---|---|---|---|
| Rutgers-New Brunswick (resident) | $18,824 | ~$34,156 | 2025-26; tuition $14,933 + $3,891 fees, total COA on campus |
| The College of New Jersey (resident) | $20,398 | ~$43,330 | 2025-26; tuition $15,906 + $4,492 fees, total COA on campus |
Sources: Rutgers University-New Brunswick 2025-26 tuition, fees, and cost of attendance (admissions.rutgers.edu); The College of New Jersey 2025-26 in-state cost of attendance (financialaid.tcnj.edu). Total cost of attendance includes housing, food, books, and personal expenses for an on-campus resident and varies by student.
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).
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.
New Jersey 529 Frequently Asked Questions
How much is the New Jersey 529 state tax deduction in 2026?
What is the NJBEST matching grant and how do I get it?
What is the NJBEST Scholarship?
Is NJBEST a good 529 plan, or should I use an out-of-state plan?
How much does college cost in New Jersey, and how much should I save?
By Oliver Wakefield-Smith. Independent 529 education savings resource, not affiliated with NJBEST, HESAA, the State of New Jersey, Franklin Templeton, or any plan provider.