The short version
- From 2026 a 529 can pay up to $20,000 a year per student for K-12 tuition and other approved costs, counted across all of that student's 529 plans.
- The list now includes curriculum, books, online learning, qualified tutoring, exam fees such as the SAT, ACT and AP, dual enrollment and certain therapies.
- Uniforms, sports, ordinary activities and school transportation do not qualify.
- Your state decides separately whether K-12 withdrawals are taxed. Some states tax the earnings and may take back a deduction, so check before you withdraw.
Most people think of a 529 as a college fund. Federal law has always let families use it for K-12 tuition, and since 2026 it can pay for much more. Here is what changed, what qualifies, and the catch that surprises families: your state may not agree with the federal rules.
What changed
Until recently, a 529 could pay only K-12 tuition, up to $10,000 a year per student. A 2025 law raised the limit to $20,000 a year starting in 2026 and added more costs. The new list applies to withdrawals made after July 4, 2025, and the higher limit begins with 2026.
What a 529 can pay for before college
| Expense | Federal rule |
|---|---|
| Tuition at a public, private or religious elementary or secondary school | Qualifies |
| Curriculum, textbooks and instructional materials | Qualifies |
| Online educational materials and courses | Qualifies |
| Tutoring or classes outside the home | Qualifies, with requirements |
| SAT, ACT, AP and other qualifying exam fees | Qualifies |
| College courses taken in high school (dual enrollment) | Qualifies |
| Certain educational therapies for a student with a disability | Qualifies, with requirements |
| Uniforms, sports equipment and ordinary activities | Does not qualify |
| School transportation | Does not qualify |
Tutoring and therapy come with conditions about who provides the service. The tutor must be unrelated to the student and be a licensed teacher, a former teacher at an eligible school, or a subject-matter expert. Therapy must come from a licensed or accredited provider. Confirm the details before you pay.
The $20,000 limit
The limit is per student, per calendar year, across every 529 plan the student has. It applies to the total withdrawn for K-12 costs, so if a grandparent also pays from their own 529 for the same child, both count toward the same $20,000. Above the limit, the extra withdrawal is not tax-free even for a qualified expense.
The state tax catch
The federal government and your state are separate. A withdrawal can be tax-free federally and still taxable at the state level.
- Some states do not follow the federal K-12 rules. They may tax the earnings part of the withdrawal, add a penalty, or both.
- Many states also take back a tax deduction you claimed for contributing if the money is used for something the state does not treat as qualified.
- Even states that allow K-12 tuition may not have updated for the new categories like tutoring and exam fees.
California is the clearest case. The state tax agency's 2025 instructions say California law does not follow the federal rules for K-12 withdrawals or the new maximum, so the earnings are taxed in California and an extra 2.5% state tax applies on top.
A January 2026 review by Saving for College lists these states as not treating K-12 withdrawals as qualified: California, Colorado, Hawaii, Illinois, Michigan, Minnesota, Montana, Nebraska, New Mexico, New York, Oregon and Vermont. New York's own 529 plan confirms it. Arizona, Connecticut, Iowa and Louisiana have conditions or conflicting reports, so check them. The review names no state as differing on the new categories like tutoring, but says states may take time to adopt them. That list is a starting point, not a guarantee, so check your state's tax agency and your plan before withdrawing.
In Launch529, set your home state in Settings and the app shows what applies before you log or reimburse a K-12 expense.
Should you use it now?
It depends. Money used for K-12 stops growing tax-free, which leaves less for college. If your state taxes the withdrawal, the real cost is higher. On the other side, paying tuition from a 529 can be a good use of a plan that is already well funded, and families with a large balance and more than one child sometimes find it fits.
A simple way to decide:
- 1Check your state first. If it taxes K-12 withdrawals, compare that cost to the benefit.
- 2Look at what is left for college. A plan on track can afford K-12 costs more easily than one that is behind.
- 3Pay in the same calendar year. Match each withdrawal to the expense it pays for, in the same tax year.
- 4Keep receipts. For every K-12 withdrawal, keep the invoice, proof of payment and who paid.
- 5Run the numbers. The K-12 Budget tab in Launch529 shows what paying from the 529 does to your college fund, growth included, and the estimated state tax where one applies.
Record keeping
Tuition is paid monthly or by semester, so it adds up to many small payments. Launch529 lets you add a K-12 school for each child, logs each payment, and shows how much of the $20,000 you have used this year, so a reimbursement request never goes past the limit.
This is general information as of October 2026, not tax, legal or financial advice. State rules change, so confirm with your state or a tax professional.
Questions families ask
Can I use a 529 for private high school tuition?
Yes, under federal rules. Tuition at a public, private or religious elementary or secondary school is a qualified expense, up to $20,000 per student per calendar year from 2026. Your state may tax the withdrawal even though the federal government does not.
Is the $20,000 limit per plan or per child?
Per student, per year, across all 529 plans that student has. If a grandparent also pays from a 529 for the same child, both withdrawals count toward the same $20,000.
What K-12 expenses do not qualify?
School uniforms, sports equipment and fees, ordinary extracurricular activities, school transportation, and similar costs do not qualify under the federal rules.
Does it hurt college savings to use the 529 now?
Money you withdraw stops growing tax-free, so every K-12 dollar is a dollar not available for college. Weigh that, and any state tax, against the benefit of paying now.
This article is general information, not tax, legal or financial advice. Rules and limits change, so check current IRS guidance and your state plan, or talk to a qualified professional.