Tuition Tax Credit Law
Individual, Original & Switcher/Overflow Tuition Tax Credit Laws
- What is the Individual Original and Switcher Tuition Tax Credits?
In Arizona, individuals can receive a dollar-for-dollar tax credit for supporting School Tuition Organizations (STOs) that provide financial aid to K-12 students attending private schools in the state. For example, in 2023, individuals can claim up to $652 and married couples can claim up to $1,301 in "Switcher" credits, but only after contributing the maximum credit amount allowed for the "Original" Individual Income Tax Credit ($655 for individuals, $1,308 for joint filers in 2023).
- What is the Corporate Tuition Tax Credits?
In 2006 and then in 2008, the Arizona State Legislature passed into law “The Corporate Income Tax Credit” and then the Disabled/Displaced Corporate Income Tax Credit, allowing businesses with an Arizona tax liability to allocate up to 100% of their tax liability and make a contribution to a qualified School Tuition Organization such as STO4KIDZ, and receive a dollar-for-dollar Tax Credit, may also qualify to claim that amount on their federal taxes as a donation. (To submit your pledge CLICK HERE )
Visit the links below for more information:
- Individual Original Tuition Tax Credit Law (A.R.S. 43-1089)
- Individual Switcher/ Overflow-PLUS Tuition Tax Credit Law (A.R.S. 43-1089.03)
- Giving via Withholding Tax Reduction through Payroll Law- (A.R.S.43-401)
- Corporate Tuition Tax Credits (A.R.S.§20-224.06 and § 43-1183)
STO Certification and Regulations
- Definitions - (A.R.S. 43-1601)
- STO Certification - (A.R.S. 43-1602)
- Operation Requirements, Notice, Qualified Schools- (A.R.S. 43-1603)
- Annual Report - (A.R.S. 43-1604)
- Audits and Financial Reviews - (A.R.S. 43-1605)
Arizona Department of Revenue Publications
The Private School Tuition Tax Credits are overseen by the Arizona Department of Revenue. Below you may find the most recent statewide financial report related to this program.
- The latest publication of School Tuition Organizations Income Tax Credits Activity Summary: STO Report.
The Arizona School Choice:
Click on the links below for valuable information on the school choice available in the state of Arizona including private schools and the tax credits supporting them.
- Arizona School Choice Government website
- Tax credits scholarship is in fact state budget positive
- How to find or contact your Legislator