Pennsylvania's Personal Income Tax Guide lists IRC Section 529 qualified tuition program contributions as one of four allowed deductions against income. The deduction is not restricted to Pennsylvania's own 529 plan; any state's qualified 529 program qualifies.
The maximum yearly deduction equals the annual federal gift tax exclusion under IRC §2503(b) per beneficiary, per taxpayer. For married couples filing jointly, each spouse may deduct up to that limit per beneficiary, effectively doubling the potential deduction.
This rule applies to the 2026 tax year and is based on the official Pennsylvania Department of Revenue guide. Taxpayers should verify the current federal gift tax exclusion amount, as it is adjusted annually.