Overview of Arizona’s Private School Tax Credit Programs
Individual Tuition Tax Credit Program
A.R.S. 43-1089 | A.R.S. 43-1089 (Eff. 1/1/11) | A.R.S. 43 Ch. 16 (Eff. 1/1/11)
The Individual or Original Tuition Tax Credit Program allows any Arizona taxpayer to direct a portion or all of their state tax liability to a School Tuition Organization and receive a 100% dollar-for-dollar tax credit for their contribution.
This is a tax CREDIT for supporting school choice, not a tax deduction. At least 90% of every dollar is then awarded by the STO via scholarships to students who choose to attend a private school.
For tax year 2026, an individual can contribute up to $1,571 and a married couple filing jointly can contribute up to $3,131.
Who is eligible?
ANY student choosing to attend a qualified Arizona private school.
Corporate Tuition Tax Credit Program
A.R.S. 43-1183 | A.R.S. 43 Ch. 15 (Eff. 1/1/11)
The Corporate Tuition Tax Credit Program allows any certain Arizona businesses to direct a portion or all of their state corporate tax liability to a School Tuition Organization and receive a 100% dollar-for-dollar tax credit for their contribution. This is a tax CREDIT for corporations supporting school choice, not a tax deduction. At least 90% of every dollar is then awarded by the STO via scholarships to students who choose to attend a private school.
The Corporate Tuition Tax Credit Program is capped for FY 26-27 at $135,000,000.
Who is eligible?
Students receiving scholarships under this program must have a household income below 185 percent of the income eligible for free and reduced price lunch (185 percent of the Federal Poverty Level). Students must also have previously attended a public school or be entering kindergarten.
Disabled/Displaced Pupils Corporate Tax Credit Program (Lexie’s Law)
A.R.S. 43-1184 | A.R.S. 43 Ch. 15 (Eff. 1/1/11)
Lexie’s Law allows any Arizona Corporation to direct a portion or all of their state corporate tax liability to a School Tuition Organization and receive a 100% dollar-for-dollar tax credit for their contribution. This is a tax CREDIT for corporations supporting disabled/displaced students, not a tax deduction. At least 90% of every dollar is then awarded by the STO via scholarships to students who choose to attend a private school.
The Lexie’s Law Program is capped at $5,000,000 a year.
Who is eligible?
Students in Preschool through 12thgrades are eligible for this scholarship if they have ever received an IEP (Individualized Education Plan) or 504 plan from a public school. Students (K-12) who have ever been in the Arizona foster care system are also eligible.