Arizona offers two valuable individual tax credits for donations to School Tuition Organizations (STOs). These are dollar-for-dollar credits that reduce the Arizona income tax you owe. For 2026, the limits have been adjusted for inflation.
Two STO Credits Available
1. Original Credit — Form 323
This is the base credit for cash contributions to a certified School Tuition Organization that provides scholarships for students attending private schools in Arizona.
- Single, Married Filing Separately, or Head of Household: Up to $787
- Married Filing Jointly: Up to $1,570
2. Switcher Credit — Form 348
This additional credit is available only after you have donated the maximum allowed under Form 323. It is often called the PLUS or “Switcher” credit.
- Single, Married Filing Separately, or Head of Household: Up to $784
- Married Filing Jointly: Up to $1,561
Combined maximum for 2026: up to $1,571 for most filers and up to $3,131 for married couples filing jointly.
Key Rules
- Donations must go to a certified School Tuition Organization on the Arizona Department of Revenue list.
- You cannot designate the contribution for the direct benefit of your own dependent.
- Keep the receipt that shows the organization’s name and the amount donated.
- Donations made from January 1 through April 15 of the following year can often be claimed on the prior year’s Arizona return (confirm current rules when you file).
Who Benefits Most?
Anyone who pays Arizona state income tax can use these credits. They are especially useful for families who support private education and for taxpayers looking for a simple way to redirect state tax dollars to Arizona students.
Need Help Claiming the Credits?
Vault Financials helps Arizona individuals and families claim the School Tuition Organization credits correctly on Forms 323 and 348 so you receive the full benefit.
Contact us today for assistance.
Disclaimer: This article is for educational purposes only. Tax rules and credit limits can change. Consult a qualified tax professional for advice specific to your situation.