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South Dakota Partners in Education Tax Credit Program

Tax-credit scholarship. About $2,457 on average (2025-26).

66 private schools listed in South Dakota

Income limitsHow to applyTuition calculator

How Partners in Education works

What you getAbout $2,457 on average (2025-26). The scholarship organization sets amounts. By law the average award may not exceed the state per-student equivalent; we did not verify that dollar figure.
Who qualifiesSouth Dakota K-12 students in households at or below 200% of the income standard for free or reduced-price lunch, or in foster care, attending an accredited nonpublic school. SB 84 (2026) raised the limit from 150%. Once a student qualifies, eligibility lasts three years (or through high school for a student who qualifies entering high school); after that the student stays eligible up to 250% of the standard.
How full it is1,783 students at 48 schools in 2025-26. Insurance company donations earn credits capped at $5 million a year.
When to applyThe 2026-27 application opened January 26, 2026 with a May 31 deadline. Expect a similar window for 2027-28.
How the money movesThe scholarship organization mails a check to the school. It is made out to the parent, who endorses it to the tuition account.
What it coversAll or part of tuition and fees at a qualifying school.
Federal tax credit, 2027South Dakota is on the IRS list of states that opted in to the federal scholarship tax credit (as of September 14, 2026), so scholarship organizations here can take federally credited gifts from January 2027.

Worth knowing: The $5 million yearly credit cap limits how many students can be funded.

We read this on from: South Dakota Division of Insurance, Partners in Education Tax Credit; South Dakota Legislature, SB 84 (2026) enrolled; SDCL 13-65-1, eligible student; South Dakota Partners in Education, 2026-27 parent handbook; South Dakota Partners in Education, participating schools. Rules change when the legislature meets, so check the official program site before you count on a number.

Partners in Education income limits for 2026-27 (limits effective July 1, 2026 to June 30, 2027)

Yearly household income limit by household size, South Dakota
Household sizeNew students
200% of the reduced-price school lunch income standard
Reapplying students
250% of the reduced-price school lunch income standard
2$80,068$100,085
3$101,084$126,355
4$122,100$152,625
5$143,116$178,895
6$164,132$205,165
7$185,148$231,435
8$206,164$257,705

New students. Total household income in the year before the student enters the program must be at or below 200% of the reduced-price lunch income standard. Once a student qualifies, eligibility lasts three years, or until graduation for a student who qualifies entering high school. A child in foster care qualifies regardless of household income. Source.

Reapplying students. After the first three years, a student stays eligible if prior-year household income is at or below 250% of the reduced-price lunch standard, and the family reapplies to prove it. Source.

Who goes first. If donations hit the tax credit limit, Partners in Education first funds qualifying returning students at or near last year's award. If money left for new students is not enough, new students are funded first come, first served by the date their application reaches a GOOD rating with all income documents.

How to apply for Partners in Education

  1. Read the Partners in Education Parent Handbook and check that your school is on the list of partner schools.
  2. Create a TADS account through the Apply Now link on the Partners in Education For Families page and complete the online application.
  3. Upload your income documents and pay the application fee in TADS.
  4. Make sure your application reaches a GOOD form rating by May 31. New students are only funded if their application is complete by then.
  5. Enroll your child at the partner school. If your child is accepted, you receive a Conditional Scholarship Award Notification before school starts.
  6. After the school confirms your child is attending, a check made out to you is sent to the school. You endorse it at the school so it goes to your child's tuition account.

What to have ready

  • Prior year IRS Form 1040
  • W-2 statements for the prior year
  • Proof of foster care, if applying for a foster child
  • TADS application fee

Go to the official application

Steps and limits read on from: South Dakota Partners in Education, For Families; South Dakota Partners in Education, 2026-2027 Parent Handbook (revised 4/9/26); SDCL 13-65-1, definitions (as amended 2026); SDCL 13-65-4, requirements for scholarship granting organizations; South Dakota Partners in Education, Participating Schools. Limits change each year with the federal poverty guidelines, so confirm on the official site before you apply.

Run your own numbers

What would you pay?

We could not confirm this year’s Partners in Education amount, so type in the figure from your award letter. An award can never be more than the school actually charges. This is arithmetic, not a quote.

Which schools take it

The state does not publish a school list. South Dakota Partners in Education, a scholarship organization, lists its 49 partner schools on its website.

Browse private schools in South Dakota The state’s own list

Get one email when applications open

Most programs open once a year, and several ran out of money or seats in 2026. Pick your state and we will email you the day the next window opens, with the official link. That is the only email you get.

One email per application window. No calls, no sharing your details.

Questions parents ask

How much does Partners in Education pay in South Dakota?

About $2,457 on average (2025-26). The scholarship organization sets amounts. By law the average award may not exceed the state per-student equivalent; we did not verify that dollar figure.

Who is eligible?

South Dakota K-12 students in households at or below 200% of the income standard for free or reduced-price lunch, or in foster care, attending an accredited nonpublic school. SB 84 (2026) raised the limit from 150%. Once a student qualifies, eligibility lasts three years (or through high school for a student who qualifies entering high school); after that the student stays eligible up to 250% of the standard.

Does it cover the full cost of private school?

Not always. The award is a set amount and every school sets its own price. Ask each school for tuition plus fees, then subtract the award. The calculator on this page does the sum for you.

How do I know a school accepts Partners in Education?

The state does not publish a school list. South Dakota Partners in Education, a scholarship organization, lists its 49 partner schools on its website.

When do I apply?

The 2026-27 application opened January 26, 2026 with a May 31 deadline. Expect a similar window for 2027-28.

Do I have to reapply every year?

No. A qualifying student keeps the scholarship for three years, and a student who qualifies entering high school stays eligible until graduation. After three years the family reapplies, and you must apply in any year a new sibling becomes eligible.

Will the scholarship cover full tuition?

Sometimes. It depends on the school's tuition, and the family must pay any difference between tuition and fees and the scholarship plus any aid the school gives.

What does the scholarship pay for?

Tuition first. If anything is left, it goes to books sold through the school, registration, testing and other listed school fees, in that order. After-school care is not covered.

Can we switch schools during the year?

Yes. Your child can move to another partner school and take the unused part of the scholarship, as long as you have no unpaid balance at the school you are leaving or have agreed to a payment plan.

Do we have to pay the scholarship back?

No. You only owe the school any tuition or fees the scholarship does not cover.

Can a foster child get a scholarship?

Yes. A child in foster care is eligible regardless of household income. The foster family applies through TADS, says the child is in foster care, and sends documentation.

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