Texas 529 Plan Calculator: No State Tax, So the Only Lever Is Fees

Texas has no state income tax, so there is no 529 deduction to chase and no in-state-versus-national tradeoff. That frees you to pick purely on fees, and the Texas College Savings Plan's 0.31-0.61% is well above the roughly 0.10% you can get from a national plan. Project your UT Austin or Texas A&M costs and monthly savings target below, and see how the fee gap adds up for your family.

Updated June 2026

Texas 529 at a glance (2026)

State Tax Deduction

no state income tax in Texas

TX Plan Fees

0.31-0.61%

Texas College Savings Plan (Orion)

Max Balance

$500,000

aggregate per beneficiary

Best Move

Go national

no deduction lost by leaving

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

Why There Is No Texas 529 Tax Deduction

Texas is one of nine states with no individual income tax, so there is nothing for a 529 deduction to reduce. This is different from a no-deduction income-tax state like California, where residents pay state tax but get no 529 break; a Texan pays no state income tax on any income to begin with. The practical upshot is that the in-state-versus-national question the rest of this site wrestles with simply does not apply here. Your Texas 529 dollars get the same federal treatment as everyone else's, namely tax-free growth and tax-free qualified withdrawals, and the only thing that separates a good choice from a bad one is how much you pay in fees.

What you do get

Federal tax-free growth on every dollar of investment gain, the same as any state's plan.
Complete freedom to use the lowest-fee plan in the country with no state tax penalty for leaving.
A $35,000 lifetime 529-to-Roth IRA rollover (SECURE 2.0) and superfunding up to $95,000 single / $190,000 married.
The expanded federal K-12 benefit ($20,000/year from 2026) with no state conformity worries, since Texas has no income tax.

What to watch for

The Texas College Savings Plan's 0.31-0.61% fees are well above the cheapest national plans (about 0.10%).
There is no tax incentive to stay in-state, so paying those higher fees buys you nothing extra.
The advisor-sold LoneStar 529 Plan carries higher fees and sales charges; only worthwhile if you want advisor management.

Source: Texas has no individual income tax (Texas Comptroller); no state 529 deduction is available. Federal rules per IRS Publication 970 and SECURE 2.0. See the full state-by-state deduction table.

Texas College Savings Plan vs a National Plan

Texas sponsors three programs. The Texas College Savings Plan is the direct-sold savings plan, managed by Orion Advisor Solutions, with total annual asset-based fees of about 0.31% to 0.61%, a $25 minimum ($15 with automatic contributions), and contributions accepted until all Texas 529 balances for one beneficiary reach $500,000. The LoneStar 529 Plan is the advisor-sold version with higher fees and sales charges, and the Texas Tuition Promise Fund is a separate prepaid-tuition product. Because no Texas tax break is at stake, the direct plan competes on fees alone, and at 0.31-0.61% it sits above the cheapest national options.

TX College Savings Plan

0.31-0.61%

direct-sold, Orion Advisor Solutions

Utah my529 (national)

~0.10%

open to any state's residents

Nevada Vanguard 529

~0.14%

Vanguard index portfolios

Source: SavingForCollege.com Texas College Savings Plan profile and plan disclosure (Orion Advisor Solutions, fees 0.31-0.61%, $500,000 aggregate max, $25/$15 minimum), 2026; Utah my529 and Nevada Vanguard 529 fee disclosures. See how they compare in the best 529 plans rankings.

What College Costs in Texas

Texas public universities are moderately priced by national standards. The University of Texas at Austin, the flagship, charges Texas resident undergraduates about $10,858 to $13,576 in tuition and fees a year depending on college and major, a rate UT has frozen for both 2025-26 and 2026-27. Its full resident cost of attendance, once housing, food, books, and personal expenses are counted, runs about $32,508 to $35,386 a year. Texas A&M University charges roughly $12,928 in resident tuition and fees, with a full cost of attendance near $33,180. Tuition has historically risen a few percent per year, so a newborn today could face a four-year in-state public bill well over $130,000 by the time they enroll.

School	Tuition + Fees	Total Annual Cost	Basis
UT Austin (resident)	$10,858-$13,576	$32,508-$35,386	2026-27; tuition + fees vary by college/major and are frozen for 2025-26 and 2026-27; total COA incl. housing, food, books, personal
Texas A&M University (resident)	~$12,928	~$33,180	2025-26; full cost of attendance incl. housing, food, books, transportation, and personal expenses

Sources: The University of Texas at Austin 2026-27 cost of attendance and tuition rates (onestop.utexas.edu; resident tuition frozen for 2025-26 and 2026-27); Texas A&M University 2025-26 resident tuition, fees, and cost of attendance (tamu.edu). Total cost of attendance includes housing, food, books, and personal expenses for a resident student and varies by individual.

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.

Texas 529 Frequently Asked Questions

Does Texas offer a state tax deduction for 529 contributions?+

No. Texas has no state individual income tax, so there is no state income tax deduction or credit for 529 contributions, and none is possible: there is no state tax to reduce. That is not a disadvantage the way it is in a no-deduction income-tax state like California; a Texan simply skips the whole in-state-versus-national tax tradeoff. Every 529 still gets the same federal benefit, namely tax-free growth on investment gains and tax-free withdrawals for qualified education expenses, no matter which state's plan you use.

Should a Texas resident use the Texas College Savings Plan or a national plan?+

Because there is no Texas tax break to lose by going out of state, the decision comes down to fees and investment lineup alone. The Texas College Savings Plan, the state's direct-sold option managed by Orion Advisor Solutions, carries total annual asset-based fees of roughly 0.31% to 0.61% depending on the portfolio. The lowest-fee national plans, such as Utah's my529 or the Nevada Vanguard 529, run near 0.10% to 0.14% all-in and are open to residents of any state. On a large balance held for eighteen years, that fee gap can cost thousands of dollars, so most Texas families are better served by a low-fee national plan. Use the fee comparison below to see the difference for your own numbers.

What 529 plans does Texas offer?+

Texas sponsors three programs. The Texas College Savings Plan is the direct-sold savings plan (Orion Advisor Solutions, 0.31-0.61% fees, $25 minimum or $15 with automatic contributions, contributions accepted until all Texas 529 balances for one beneficiary reach $500,000). The LoneStar 529 Plan is the advisor-sold version, which carries higher fees and sales charges and is generally only worth it if you want a financial advisor to manage the account. The Texas Tuition Promise Fund is a separate prepaid tuition plan that locks in Texas public college tuition and required fees at today's prices, a different product from a savings 529.

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

The University of Texas at Austin, the state flagship, charges Texas resident undergraduates about $10,858 to $13,576 in tuition and fees a year depending on the college and major, a rate UT has frozen for both 2025-26 and 2026-27. Its full resident cost of attendance, including housing, food, books, and personal expenses, runs about $32,508 to $35,386 a year. Texas A&M University charges roughly $12,928 in resident tuition and fees, with a full cost of attendance near $33,180. Tuition tends to rise a few percent a year over the long run, so a newborn today could face a four-year in-state public bill well over $130,000 by enrollment. Use the calculator above to model your child's age, target school, and monthly contribution.

Can I still use a Texas 529 for private K-12 school?+

Yes. Federal rules, not Texas rules, govern this, and because Texas has no state income tax there is no state-level conformity question to worry about. Under the OBBBA the federal K-12 withdrawal limit rises to $20,000 per beneficiary per year starting in 2026, up from $10,000, and the list of qualifying K-12 expenses expands to include items such as tutoring, curriculum materials, and standardized-test fees. A Texas family can use any state's 529 plan for these withdrawals and pay no federal tax on the earnings.

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By Oliver Wakefield-Smith. Independent 529 education savings resource, not affiliated with the Texas College Savings Plan, the Texas Comptroller, the State of Texas, or any plan provider.