Tennessee 529 College Savings Calculator
Calculate 529 college savings growth in Tennessee. No state income tax. See projected savings and tax benefits.
How This Calculator Works
Calculation methodology and assumptions
529 plan calculator for Tennessee residents. Projections use compound interest with monthly contributions. Tennessee has no state income tax, so 529 contributions don't provide a state tax deduction — but federal tax-free growth still applies. Federal benefit: earnings grow tax-free and withdrawals for qualified education expenses are tax-free. Annual 529 gift tax exclusion: $18,000/person ($36,000 for couples) without gift tax implications. Superfunding allows 5 years of gifts upfront ($90,000/$180,000).
Key State Information
Tennessee 529 plan facts: Tennessee has no state income tax, so 529 contributions don't provide a state tax deduction — but federal tax-free growth still applies. Median household income: $56,071 | COL index: 89.7. 529 funds can be used for tuition, room & board, textbooks, and K-12 tuition (up to $10,000/yr).
Frequently Asked Questions
Does Tennessee offer a 529 tax deduction?
Tennessee has no state income tax, so 529 contributions don't provide a state tax deduction — but federal tax-free growth still applies.
How much should I save in a 529 plan in Tennessee?
With average in-state tuition around $10,000-$15,000/year and total costs (including room/board) of $20,000-$35,000/year, aim to save at least 50-75% of projected total costs. Starting early with $200-$500/month can reach $50,000-$100,000 over 10-15 years.
What happens to unused 529 funds?
As of 2024, unused 529 funds (open 15+ years) can be rolled into a Roth IRA for the beneficiary, up to $35,000 lifetime. You can also change the beneficiary to another family member, or use funds for graduate school.
Related Calculators
More 529 College Savings Calculators
More Calculators for Tennessee
Explore related financial tools with Tennessee data