2025 Legislative Roundup – Changes to the 529 College Savings Subtraction
The 69th Montana Legislature made several changes to Montana’s tax laws. The 2025 Legislative Roundup is a new series to explain these new laws.
Changes to the 529 College Savings Subtraction
The 2025 Montana Legislature made changes in two areas to the subtraction for contributions to a 529 plan under the Montana College Savings program.
New maximum for 2025 (House Bill 845)
House Bill 845 increases the maximum subtraction for 2025 for a qualifying contribution to $9,000 for a married couple filing jointly and $4,500 for all other filers.
Indexed amounts starting in 2026
The bill also indexes the limits based on inflation so they will increase for future years. For 2026, the limits increase to $9,200 and $4,600. The new amounts for subsequent years will be available on our website by October each year
Federal changes don’t alter the Montana subtraction
While recently enacted federal legislation expanded the way funds in these accounts can be used, those do not directly affect the Montana subtraction.
More Information
Learn more about the Montana 529 plan at Achieve Montana (achievemontana.com)
Have Questions?
For questions on the subtraction, visit our website at revenue.mt.gov or contact our Call Center at (406) 444-6900.
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