Arizona Private School Tax Credit

What is the Arizona Private School Tax Credit?

The Arizona Private School Tax Credit lets you redirect state income tax to help Arizona students attend private schools through tuition scholarships. Donations flow through certified School Tuition Organizations (STOs), which award scholarships to students based on their own criteria. You get the full donation back as a dollar-for-dollar credit against your Arizona state liability.

The credit is actually two separate credits stacked together: the Original credit (Form 323) and the Switcher credit, also called PLUS (Form 348). You must max out the Original before claiming any Switcher amount. Most donors give the combined total to capture the full available credit.

How much can you donate?

These limits are the combined total across Original and Switcher credits. Donate up to the limit, and you claim exactly what you gave as a credit. Unused amounts carry forward for up to five years if your Arizona liability is too low to absorb the full credit in one year.

How the Original + Switcher stack works

Arizona breaks the private school credit into two tiers. The Original credit (Form 323) covers tuition assistance for any private school student. Once you've given the maximum Original amount, additional donations up to the Switcher cap count under PLUS (Form 348). The Switcher credit targets students who are switching from a public school or entering private school for the first time in certain grade transitions.

Practically, this means you file two forms — 323 and 348 — but it's a single donation on your end. Your STO handles the allocation.

How to claim the Private School credit

1. Pick an STO or school. Arizona has dozens of certified STOs. Some serve a single school, others cover many. Pick based on the school or mission you want to support.
2. Donate by April 15 of the year after the tax year you're claiming. Your STO will send you a receipt that breaks out the Original and Switcher portions.
3. File Arizona Form 323 (Original) and Form 348 (Switcher) with your state return. The receipt tells you exactly what goes on each form.
4. Subtract the credits from your Arizona liability. Carry forward any unused amount for up to five years.

Who qualifies as an STO?

School Tuition Organizations are 501(c)(3) nonprofits certified by the Arizona Department of Revenue to receive private school tax credit donations. Each STO allocates at least 90% of contributions to scholarships, with the remainder covering administrative costs. STOs publish lists of the schools they support. AZcredits lists only STOs and schools in good standing.

Donate to an Arizona private school today

Browse participating private schools or start a donation that can split across all four Arizona tax credit programs in one transaction.