Arizona’s school tuition tax credit program can be difficult to understand. We’re here to make it easier. Explore our short videos and easy-to-understand flyers that explain how the program works, how eligible contributions may qualify for an Arizona state tax credit, and how your support helps create educational opportunities for Arizona students.

Whether you are considering making a contribution or you are a tax preparer helping a client understand the program, these materials are designed to make the important information easier to understand and share.

Important: The educational materials on our website are intended to provide general information about Arizona’s school tuition tax-credit program. It is not financial or tax advice. Always consult a qualified tax expert (your CPA, Tax preparer, Enrolled Agent, etc.) before acting upon this information.

These materials are designed for:

• Arizona taxpayers and potential donors
• Tax preparers helping clients understand the program
• Anyone who wants to learn how Arizona’s school tuition tax credit works

Arizona allows eligible taxpayers to make qualifying contributions to a certified School Tuition Organization, or STO, and potentially claim an Arizona state income-tax credit, subject to applicable requirements, limits and available tax liability.

This gives eligible Arizona taxpayers an opportunity to direct part of what they may otherwise pay in Arizona state income tax toward tuition scholarships for eligible K–12 students attending qualified Arizona private schools.

Understanding School Tuition Organizations (STOs) : A School Tuition Organization (STO) is a nonprofit certified by the Arizona Department of Revenue to receive eligible tax-credit contributions and award tuition scholarships. Scholarkids is a certified Arizona STO and 501(c)(3) nonprofit that uses qualifying contributions to support eligible students attending qualified Arizona private schools.

Explainer Video: Coming soon

Flyer: Arizona’s Private School Tuition Tax Credit: How it Works.

Note: The Arizona Department of Revenue certifies STOs, but each STO independently receives contributions, issues receipts and awards scholarships in accordance with Arizona law. An STO is not a school and does not prepare tax returns.

A tax credit and a tax deduction affect a tax return differently.
A tax deduction generally reduces the amount of income subject to tax.
A tax credit generally reduces the amount of tax owed.

Arizona’s school tuition tax credit program provides a state income-tax credit for qualifying contributions to eligible School Tuition Organizations, subject to applicable program requirements.

Explainer Video: Coming soon

Flyer: Tax Credit vs Tax Deduction

Note: A taxpayer must make an eligible contribution and have sufficient Arizona state income-tax liability to claim the applicable credit. Federal tax treatment may differ. Consult a qualified tax professional regarding your individual circumstances.

Arizona provides two individual private-school tuition tax credits:

• Original Individual Credit: The Original Individual Credit is the first of Arizona’s two individual private-school tuition tax credits.
• Switcher Individual Credit: The Switcher Individual Credit provides an additional potential credit after the applicable Original Credit maximum has been met.

Each credit has a separate annual limit (which depends on whether your filing status is single or married filing jointly) and a separate Arizona tax form. Together, they determine the maximum amount that may qualify for the combined individual STO tax credits.

2026 Contribution and Claim Limits

• Married Filing Jointly: Total combined maximum of $3,131 (up to $1,570 for the Original Credit and $1,561 for the Switcher Credit).
• Single / Head of Household: Total combined maximum of $1,571 (up to $787 for the Original Credit and $784 for the Switcher Credit).

Arizona establishes maximum credit amounts for each tax year. These limits depend on filing status and may change over time.

The published maximum does not necessarily mean that every taxpayer should contribute the maximum amount.

Taxpayers should consider their expected Arizona state income-tax liability, other Arizona credits and their individual circumstances before deciding how much to contribute.

Explainer Video: Coming soon 

Flyer: Original & Switcher Tax Credits

Note: The published maximum is a limit, not a guaranteed credit. The amount a taxpayer may claim depends on the qualifying contribution, available Arizona state income-tax liability, other credits claimed and applicable program requirements. Contributions above the applicable limit will not qualify for this Arizona tax credit.

Three Arizona forms are commonly connected with individual private-school tuition tax credits:

• Form 323 is used for the Original Individual Credit.
• Form 348 is used for the Switcher Individual Credit.
• Form 301 summarizes the taxpayer’s nonrefundable individual tax credits.

The forms required depend on which credits the taxpayer is eligible to claim.

Explainer video: Coming soon

Flyer : Choosing the Right Forms 

Note: Use the Arizona tax forms and instructions for the correct tax year. Scholarkids provides contribution receipts but does not prepare, review or file tax returns. Tax preparers are responsible for determining the correct tax treatment for each taxpayer.

The date of your contribution affects the tax year for which the credit may be claimed.

Under current Arizona rules, an eligible individual STO contribution made during the calendar year may generally be claimed for that tax year.

A qualifying contribution made between January 1 and the applicable April tax-filing deadline may generally be claimed for either:

• The current tax year, or
• The immediately preceding tax year

This depends on the taxpayer’s election and applicable requirements.

A contribution may be claimed for only one tax year.

Explainer Video: Coming soon

Flyer: Contribution Deadline

Note: Keep your Scholarkids contribution receipts and confirm the appropriate tax year with a qualified tax professional. A qualifying contribution made from January 1 through the applicable April deadline may generally be claimed for either the current or immediately preceding tax year, but not both, subject to applicable credit limits, tax liability and Arizona program requirements. 

Making a Scholarkids contribution and later claiming the applicable Arizona tax credit can be understood in a few basic steps.

Step 1 — Determine your amount

Review the current credit limits and consider your expected Arizona state income-tax liability. Decide whether you prefer to make one contribution or divide your planned annual amount into recurring payments.

Step 2 — Make your contribution

Contribute directly to Scholarkids using an available payment method. You may make a one-time contribution or select a recurring option that automatically processes smaller contributions on a regular schedule.

Step 3 — Keep your contribution records

Scholarkids provides a receipt showing the amount and date of each contribution. Keep all receipts and contribution records for the tax year in which you plan to claim the applicable credit.

Step 4 — Claim the applicable credit

Use your Scholarkids contribution records and the applicable Arizona forms when preparing your state income-tax return. Only qualifying contributions completed by the applicable deadline may be considered for that tax year.

Flyer: Contribution Process

Note: Making a contribution to Scholarkids does not automatically guarantee that the full amount will be available as an Arizona tax credit. Eligibility to claim a credit depends on the contribution date, applicable annual limits, available Arizona state income-tax liability, other credits claimed and individual tax circumstances. Taxpayers should retain their Scholarkids contribution receipts and consult a qualified tax professional regarding how and when to claim the applicable credit. 

An eligible contribution does more than provide a potential tax benefit. It helps Scholarkids create educational opportunities for Arizona students whose families face the greatest financial barriers.

Scholarkids ranks scholarship applicants by financial need, with the lowest household incomes receiving priority. We are building toward full-tuition scholarships that provide a complete answer to the financial barrier—not a small award that leaves an unaffordable tuition balance behind.

Flyer : Contribution Impact

Note: A donor may recommend an eligible student who is not their dependent, but recommendations do not determine scholarship awards. Donation-swapping arrangements are prohibited, and all awards depend on financial need, student eligibility, available funding and Arizona law. 

These materials are designed to support clear, year-round conversations between taxpayers and their own tax professionals.

Tax preparers can use the videos and Flyers to explain the program, help clients plan before the filing deadline and identify the records and Arizona forms that may be required.

Before preparing a return involving a Scholarkids contribution, review:

• Contribution amount and date
• Applicable tax year
• Taxpayer filing status
• Scholarkids contribution receipt
• Original and Switcher Credit limits
• Available Arizona state income-tax liability
• Other nonrefundable Arizona credits
• Forms 301, 323 and 348, as applicable
• Current Arizona Department of Revenue instructions
• Any available credit carryforward from an earlier year

When Arizona taxpayers understand how the school tuition tax credit works, they can make more informed decisions about where part of their state income-tax dollars can go.

A contribution to Scholarkids helps us work toward full-tuition scholarships for Arizona families who need them most—turning a tax-credit opportunity into a child’s opportunity to learn, grow and build a stronger future.