Yes, a 529 plan can be used for high school. Starting January 1, 2026, families can withdraw up to $20,000 per student per year, tax-free at the federal level, to pay for tuition and a broader list of K-12 expenses at any public, private, or religious elementary or secondary school.1Internal Revenue Service. Topic No. 313, Qualified Tuition Programs (QTPs) Before 2026, only tuition qualified and the annual cap was $10,000. State tax rules don’t always match the federal treatment, so where you live can change the math.
What High School Expenses Qualify in 2026
Federal law now recognizes the following as qualified K-12 expenses when tied to enrollment or attendance at an elementary or secondary public, private, or religious school:2Office of the Law Revision Counsel. 26 U.S. Code 529 – Qualified Tuition Programs
- Tuition
- Curriculum and curricular materials
- Books and other instructional materials
- Online educational materials
- Tutoring outside the home, if the tutor is unrelated to the student and is either a licensed teacher, has taught at a postsecondary institution, or is a subject matter expert
- Fees for standardized achievement tests, AP exams, and college admission exams
- Dual enrollment fees for taking a college course while still in high school
- Occupational, behavioral, physical, and speech-language therapies for students with disabilities, when provided by a licensed practitioner
This is a real expansion from the pre-2026 rule, which covered tuition only.
What Doesn’t Qualify
Several common high school costs stay outside the federal definition, and using 529 money for them creates a non-qualified distribution:
- Computers, software, and related equipment (these qualify for college but not K-12)3Internal Revenue Service. 529 Plans: Questions and Answers
- Room and board
- Transportation
- Extracurricular activity fees, including sports, clubs, and music programs
- School uniforms and general supplies
The line between online educational materials and computer equipment catches people. A subscription to an online learning platform qualifies. The laptop you use to access it does not.2Office of the Law Revision Counsel. 26 U.S. Code 529 – Qualified Tuition Programs
The $20,000 Annual Limit
The federal cap is $20,000 per student per year, effective January 1, 2026, up from $10,000.1Internal Revenue Service. Topic No. 313, Qualified Tuition Programs (QTPs) The limit is per student, not per account. If grandparents, parents, and an aunt each own a 529 naming the same child, the combined K-12 withdrawals across all three accounts cannot exceed $20,000 in a single tax year.
Anything above $20,000 is a non-qualified distribution: the earnings portion becomes subject to federal income tax and a 10% penalty. If more than one adult contributes to a child’s education, track withdrawals across accounts so nobody accidentally crosses the line.
The limit is per student, so families with more than one child in private school can maintain a separate 529 for each and withdraw up to $20,000 for each of them in the same year.
State Taxes Can Change the Answer
Federal tax-free treatment does not guarantee state tax-free treatment. Roughly a dozen states, including several large ones, still treat K-12 distributions as non-qualified for state income tax purposes. In those states, the earnings portion of a K-12 withdrawal is subject to state income tax even though the IRS considers it tax-free.
There’s a second risk: state tax recapture. If your state gave you a deduction or credit when you contributed to the 529, and that state doesn’t recognize K-12 expenses as qualified, the state can require you to pay back that earlier benefit. The mechanism is usually adding the previously deducted amount back to state taxable income in the year you take the K-12 withdrawal. State tax on the earnings plus recapture of an old deduction can significantly narrow the benefit of using 529 money for high school.
Before withdrawing, confirm whether your state has adopted the federal K-12 rules. Your plan administrator or state tax agency can tell you.
What Happens if the Withdrawal Doesn’t Qualify
When a distribution isn’t used for a qualified expense, or exceeds the $20,000 K-12 cap, the earnings portion is subject to federal income tax plus a 10% penalty.3Internal Revenue Service. 529 Plans: Questions and Answers Only earnings are taxed and penalized, not the original after-tax contributions. The tax falls on whoever receives the payment, typically the account owner unless the distribution goes directly to the student.
The 10% penalty is waived in a few situations: the beneficiary dies or becomes permanently disabled, the beneficiary receives a tax-free scholarship (up to the scholarship amount), or the beneficiary attends a U.S. military academy. Income tax on the earnings still applies in those cases.
Homeschooling
The statute limits qualified K-12 expenses to those connected with enrollment or attendance at an “elementary or secondary public, private, or religious school.”2Office of the Law Revision Counsel. 26 U.S. Code 529 – Qualified Tuition Programs Some states classify homeschools as private schools, which could bring certain homeschool expenses under the federal umbrella. Others treat homeschooling as its own category. Even in states where homeschools count as private schools, only the specific categories listed in federal law qualify, so a homeschool family should talk to a tax professional familiar with both the state’s classification and the federal expense list before taking a distribution.
How to Take a High School Withdrawal
Most plans handle withdrawal requests through an online portal, though some still accept mailed forms. You’ll usually need the student’s Social Security number, the 529 account number, and a current tuition invoice or billing statement. Enter the amount you want to withdraw and choose whether the plan pays the school directly or reimburses you.
Paying the school directly creates a cleaner paper trail if the IRS ever asks questions. Online requests generally process within three to five business days. After the withdrawal, your plan sends a confirmation. The following January, it issues Form 1099-Q reporting the year’s total distributions, which you use to report the withdrawal on your federal return.4Internal Revenue Service. About Form 1099-Q, Payments From Qualified Education Programs (Under Sections 529 and 530) Keep tuition invoices and receipts with the 1099-Q so you can show the expenses qualified.