Tools · Family · 2026 gift tax

529 vs taxable calculator

Tax-free 529 growth vs a taxable brokerage taxed once at withdrawal at your entered long-term capital-gains percent. Type the return — 7% is an example, not this morning’s auction. 2026 gift exclusion $19,000 per donor (Rev. Proc. 2025-32). Superfund is five years on Form 709, not a Venmo. Primer: 529 vs brokerage. Sequence: college funding stack.

Quick answer: This calculator compares tax-free 529 growth with a taxable brokerage after the capital-gains rate you type. Gift, superfund, K-12, and leftover Roth figures are the ones already printed on the page. The return is yours, not a scraped fund yield.

The 529

Current balance ($) Monthly contribution ($) Extra this year ($) Years until first tuition Expected return % (yours, not a scrape)

Same return in both wrappers. Age-based 529 glide paths usually earn less than 7% in the last five years. Type a lower number if you will be in bonds by junior year.

The taxable twin

Cap-gains tax % at withdrawal Ordinary tax % if the 529 is not qualified How the 529 comes out This year’s donor

Taxable is modeled as one LTCG bill at the end, not annual dividend drag. Type a lower return if you want that drag. Direct tuition paid to the school is a separate unlimited gift — it is not this contribution.

529 vs taxable

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Educational estimate. Federal 529 has no annual contribution cap; the $19,000 / $38,000 numbers are the 2026 gift-tax annual exclusion (Rev. Proc. 2025-32 §4.42(1)), not a 529 ceiling. Superfund $95,000 / $190,000 is IRC §529(c)(2)(B) on a filed Form 709. K-12 $20,000 per beneficiary for 2026: IRS Topic 313 (was $10,000 through 2025). Student-loan repayments $10,000 lifetime per person. 529-to-Roth $35,000 lifetime, annual Roth cap $7,500 in 2026 (Notice 2025-67), 15-year clock, last five years of contributions ineligible. State deduction is not modeled. Paid sequence: college funding stack. Not advice.

What this means for you

What this means for you: the 529 lead is the tax you do not pay on qualified growth. A non-qualified withdrawal uses the leftover-earnings tax plus the penalty the page describes. The gift lines are contribution context, not a requirement to fund that much.

How to use this calculator

Open the 529 college savings calculator and keep the sample numbers or replace them with your own. The result updates as you type.
Read the headline figure first, then the breakdown or chart under it.
Use Copy share link if you want those inputs in the URL. The page is an educational estimate, not a filing, approval, or recommendation.

FAQ

What return does the 529 calculator use?

The annual return you type, grown the way the page states. It is not a fund's past performance.

What are the gift numbers?

The annual exclusion and superfund amounts printed on the page. This review did not change them.

What if I do not spend the 529 on school?

The page taxes leftover earnings and adds the penalty it describes, and it labels the Roth rollover cap it uses.

Educational, not financial advice. Page updated October 24, 2026 — no tax, limit, or rate figure was changed in this review.