529 plans offer several tax benefits for parents who are saving for their children's education. One of the main advantages is that contributions to a 529 plan are made with after-tax dollars, meaning that the money grows tax-free and can be withdrawn tax-free when used for qualified educational expenses.

For example, if a parent contributes $5,000 to a 529 plan and the investments grow to $7,000, the $2,000 earnings are not subject to federal income tax or, in many cases, state income tax when used for qualified education expenses.

Additionally, some states offer tax deductions or credits for contributions made to a 529 plan. For instance, a parent contributing to a 529 plan in New York may be eligible for a state tax deduction of up to $5,000 per year, per taxpayer.

It's important for parents to be aware of the specific tax benefits available in their state and to consider the long-term tax advantages of a 529 plan when saving for their children's education.