Arizona STO Tax-Credit Scholarships Explained (2026)

Arizona lets individuals and corporations take a dollar-for-dollar state tax credit for donations to certified School Tuition Organizations (STOs), and the STOs award scholarships to students at private schools. Any K-12 private-school student can receive the basic scholarship; larger or additional programs depend on a "switcher" condition, household income or a disability. You apply through each STO, usually with the school's help, and you cannot hold an STO scholarship and an ESA in the same year.

The four programs

Program	Credit form and statute	Who gives	Who can receive	Award limit
Original individual credit	Form 323; A.R.S. 43-1089	Individual taxpayers	Any K-12 private-school student	Set by each STO
Switcher (overflow) individual credit	Form 348; A.R.S. 43-1089.03	Individual taxpayers who have given the maximum to the original credit	Students meeting a switcher condition (below)	Set by each STO
Corporate low-income credit	Form 335; A.R.S. 43-1183	Corporations, within a statewide cap of $110,000,000 per fiscal year	Household income at or below 185% of the reduced-price-lunch limit, plus a switcher condition	$6,500 for K-8 and $8,300 for grades 9-12 (2025-26)
Corporate credit for students with disabilities or a foster-care history	Form 341; A.R.S. 43-1184	Corporations, within a statewide cap of $6,000,000 per fiscal year	A student who was ever in foster care or has a 504- or IEP-type disability	The lesser of tuition or 90% of state aid

Who qualifies

Any private-school student in kindergarten through grade 12 can receive an original-credit scholarship. Two limits apply by statute (A.R.S. 43-1603): an STO may not award a scholarship solely because a donor recommended the student, and may not award one to a student who is enrolled in a district or charter school at the same time.

Switcher conditions. A student qualifies for the switcher and corporate programs if they:

attended a public school for at least 90 days of the prior school year;
are entering kindergarten;
are a dependent of a military member stationed in Arizona;
were homeschooled or moved to Arizona from out of state;
left an ESA without renewing it;
were in foster care; or
previously received a switcher or corporate scholarship.

For a family new to Arizona, "moved from out of state" is usually the condition that applies.

Low-income table (2025-26). The corporate low-income program requires household income at or below 185% of the reduced-price-lunch limit: $110,034 for a family of four, plus $18,824 for each additional member, per the Department of Revenue's STO manual (May 2025). Each STO checks income with its own documentation.

Donor caps by tax year

These are the most a donor can claim, as published by the Arizona Department of Revenue (as of October 2026). They matter to families because they limit how much any one donor can direct to an STO, not because a family claims them.

Tax year	Original credit (single / joint)	Switcher credit (single / joint)
2026	$787 / $1,570	$784 / $1,561
2027	$797 / $1,589	$794 / $1,580

The Department of Revenue's live page shows only 2026 and 2027; if you need the 2025 figures, check the page's archive or your tax preparer. Corporate credits are capped statewide at $110,000,000 (low-income) and $6,000,000 (disability and foster-care) per fiscal year.

Major STOs and how families apply

Each STO runs its own application, and most ask the school to confirm enrollment. The Department of Revenue's certified list (updated 10 March 2026) is the authority; the organisations below are the larger ones families meet most often.

Arizona Christian School Tuition Organization (ACSTO), acsto.org: Parent Portal; one application per student per year; awards four times a year.
Catholic Education Arizona, catholiceducationarizona.org/apply: FACTS application; for 2026-27, Round 1 ran 1 February to 15 April 2026, Round 2 16 April to 21 August 2026, and post-Round 2 applications from 1 October 2026.
Arizona Private Education Scholarship Fund (APESF), apesf.org/apply: one application per household.
Arizona Tuition Organization (AZTO), azto.org: apply at account.azto.org.
Institute for Better Education (IBE), ibescholarships.org/applicants: application opens in early February; recommended funds offered monthly.
Arizona Leadership Foundation, arizonaleader.org/applications: corporate programs only; the 2026-27 application period had closed as of October 2026, with awards in August.
Others on the Department of Revenue's list include Arizona Tuition Connection, Brophy Community Foundation, Jewish Tuition Organization, Arizona Episcopal Schools Foundation and Arizona Education Scholarship Foundation.

How to apply, in practice:

Ask the school's aid or business office which STOs its families use; many schools list them on their tuition pages.
Apply to each STO through its own portal, with the documents it asks for (enrollment confirmation, income documents for the low-income program, proof of the switcher condition).
Tell the school when awards come in. STOs pay the school directly, and the school credits your account.
Reapply every year. Awards are not automatic and depend on what donors gave.

Deadlines

STO calendars differ, and many award on a rolling basis as donations arrive. The dates the brief records as of October 2026: Catholic Education Arizona's 2026-27 rounds (1 February to 15 April, 16 April to 21 August, then from 1 October 2026); IBE opens in early February; ACSTO awards four times a year; Arizona Leadership Foundation awards in August. If you arrive after a deadline, apply anyway; several STOs keep a later round or monthly funds, and a school may hold a place while you wait. See mid-year enrollment.

The ESA conflict and the repayment rule

A student cannot receive an STO scholarship and an ESA in the same year. The ESA contract requires the parent to "not accept a scholarship from a school tuition organization pursuant to title 43 concurrently with an Arizona empowerment scholarship account for the qualified student in the same year" (A.R.S. 15-2402(B)(3)), and ADE says a violation "can result in termination".

If you move from an STO scholarship to an ESA, the money must go back: ADE's handbook says the family "must repay the STO the scholarship amount before signing an ESA contract", and the Department of Revenue's manual says all STO money remitted to the school for that contract year must be returned regardless of when the ESA contract was signed. STOs read the rule slightly differently (IBE says different sources may be used in separate quarters; AZTO says an ESA student is not eligible for any award in the same school year), so the safe course is one source per school year, confirmed in writing with the STO and the school. A student who leaves an ESA without renewing becomes switcher-eligible the next year. The paying for school hub compares the two routes with a worked example.

Sources and where to verify

Represent a school listed on this page? You can keep your own facts current: see how schools update their listing, by web form, by a scoped API key, or by connecting your AI assistant to this site's MCP server. Corrections by email are welcome too. Every change is logged and shown with its date, as the editorial policy explains.

Frequently asked questions

Who can get an Arizona STO scholarship?

Any student in kindergarten through grade 12 at a private school can receive an original-credit scholarship. The switcher and corporate programs need a condition such as 90 days in public school last year, entering kindergarten, moving from out of state, or a disability or foster-care history, and the corporate low-income program also has an income limit.

We just moved to Arizona. Do we count as switchers?

Yes. Moving to Arizona from out of state is one of the switcher conditions in A.R.S. 43-1603, which opens the switcher credit and, if your income is at or below the table, the corporate low-income program.

How much is an STO scholarship?

It depends on the STO and its donations. The only statutory caps are on the corporate programs: $6,500 for K-8 and $8,300 for grades 9-12 in the low-income program (2025-26), and the lesser of tuition or 90% of state aid in the disability and foster-care program. Ask the school's aid office what its families typically receive.

Can I get an STO scholarship and an ESA?

Not in the same year. The ESA contract forbids it, and switching from STO to ESA means repaying the STO for that contract year first.

Can a donor pick my child?

No. Donors may recommend a student, but under A.R.S. 43-1603 an STO may not award a scholarship solely on that recommendation. Ask the STO how it handles recommendations.

Do I apply to the STO or to the school?

To the STO, through its own portal, but the school confirms enrollment and usually tells families which STOs to use. Apply to more than one if the school allows it.

What if we missed the deadlines?

Apply anyway. Several STOs award more than once a year or monthly, and Catholic Education Arizona took post-Round 2 applications from 1 October 2026. The school may hold a place while awards are decided.

Last reviewed October 11, 2026. Figures change; the sources above are where to check.