Tax-credit scholarships: which states have them and how they work
A tax-credit scholarship comes from a nonprofit scholarship organization funded by donors who get a state tax credit. You apply to the organization, not the state.
By our count of official sources, at least 18 states run a tax-credit scholarship program in 2026-27. In 8 it is the main state program we track.
18 states
18 programs
Last checked October 2, 2026
States where the main program is a tax-credit scholarship
| State | Program | What you get | Who qualifies |
|---|---|---|---|
| Kansas | Kansas Tax Credit for Low Income Students Scholarship Program | Up to $8,000 per student per year. | Kansas children in families at or below 250% of the federal poverty guidelines who attended a Kansas public school in grades K-8 the year before, or who are 7 or younger and eligible to enroll. |
| Missouri | MOScholars | Up to $7,145 per student for 2026-27, more for some students. | Students with an IEP (the Treasurer also accepts an IDEA service plan dated within 36 months), or from households up to 300% of the free and reduced lunch income standard who also attended public school full time for at least one semester in the past 12 months, are entering kindergarten or first grade, or have a sibling in the program. |
| Montana | Montana Tax Credits for Contributions to Student Scholarship Organizations | Set by each scholarship organization. | Montana residents who are 5 or older by September 10 of the school year and have not yet turned 19. |
| Nevada | Nevada Opportunity Scholarship | Up to $10,367 per student for 2026-27. | Nevada students in households at or below 300 percent of the federal poverty level, attending a private school registered with the program. |
| Pennsylvania | Pennsylvania EITC and Opportunity Scholarship Tax Credits | Set by each scholarship organization. Opportunity Scholarships go up to $8,500, or $15,000 for a student with a disability. | Pennsylvania students in kindergarten through 12th grade whose household income is no more than $122,322 plus $21,531 for the student and each other dependent. |
| Rhode Island | Rhode Island Tax Credits for Contributions to Scholarship Organizations | About $3,245 on average (2024). | Rhode Island school-age students registered at a qualified school whose household income is no more than 250% of the federal poverty guidelines. |
| South Dakota | South Dakota Partners in Education Tax Credit Program | About $2,457 on average (2025-26). | 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. |
| Virginia | Virginia Education Improvement Scholarships Tax Credits | Up to the state share of per-pupil public school funding where you live. | Virginia students whose family income is no more than 300% of the federal poverty guidelines, or 400% for a student with an IEP. |
Each program page lists its sources. Facts read between October 1, 2026 and October 2, 2026. Amounts change each year, so check the official program site before you count on one.
Other tax-credit scholarships
States also run these, often for students with disabilities. Where we have a page, the link goes to it; otherwise it goes to the official source.
- Alabama: Alabama Accountability Act scholarships
- Arizona: School Tuition Organization scholarships, including Lexie's Law
- Florida: Florida Tax Credit Scholarship (part of the Florida program we track)
- Georgia: Qualified Education Expense tax credit scholarships
- Indiana: School Scholarship Tax Credit (scholarship granting organizations)
- Iowa: School Tuition Organization tax credit scholarships
- Louisiana: Tuition Donation Credit Program
- Ohio: Scholarship Donation Credit (scholarship granting organizations)
- South Carolina: Exceptional SC scholarships for children with exceptional needs
- Utah: Carson Smith Opportunity Scholarship
From our review of official sources, read between October 1, 2026 and October 2, 2026.
How tax-credit scholarships differ from other school choice programs
| Type | How the money moves | Main program in | States with at least one |
|---|---|---|---|
| Education savings account (ESA) | The state puts money in an account the family directs, and the family pays the school and other approved providers, such as tutors and therapists, from it. | Alabama, Arizona, Arkansas, Florida, Georgia, Iowa, Louisiana, Mississippi, New Hampshire, South Carolina, Texas, Utah, West Virginia and Wyoming | 17 states |
| School voucher (state scholarship) | Public money pays a set amount toward tuition at a participating private school. In Maine and Vermont town tuitioning, the home school district pays. | District of Columbia, Indiana, Maine, Maryland, North Carolina, Ohio, Tennessee, Vermont and Wisconsin | 13 states and DC |
| Tax-credit scholarship | Donors give to nonprofit scholarship organizations and get a state tax credit. The organizations award the scholarships and set amounts within state law. | Kansas, Missouri, Montana, Nevada, Pennsylvania, Rhode Island, South Dakota and Virginia | 18 states |
| Refundable tax credit | The state gives the family an income tax credit for tuition and fees, paid even when the family owes no tax. | Idaho and Oklahoma | 4 states |
We group each program by how its money moves; a state can run more than one kind. Counts include the other programs listed on each hub and are a floor, not a census.
What tax-credit scholarships cover, state by state
| State | What it covers | How the money moves |
|---|---|---|
| Kansas | Tuition, fees and expenses at a qualified school, plus transportation if the school provides it. Schools must be accredited or working toward it. | By law the scholarship organization pays the school, by check made out to both the parent and the school or to the school alone. If a student changes schools during the year, the money is split by attendance. |
| Missouri | Tuition, tutoring, therapies, curriculum and other approved education expenses. | An Educational Assistance Organization holds the scholarship and pays schools and approved providers. |
| Montana | Attendance at a qualified education provider: a provider that is not a public school or home school and is accredited or seeking accreditation, or that tells parents in writing it is not. The law does not list other covered costs. | The scholarship organization sends the money directly to the school or provider the parent chose, and the provider must tell the parent when it arrives. |
| Nevada | Tuition, fees and transportation tied to attending the school. | The scholarship organization pays the school on the student’s behalf. |
| Pennsylvania | Tuition, plus fees the school charges every student, such as books, technology, uniforms and activities. An Opportunity Scholarship can also pay for a public school outside your district. | The scholarship organization pays the award to or on behalf of the student. Ask it how the money reaches the school. |
| Rhode Island | Tuition assistance to attend a qualified Rhode Island nonpublic school. | The scholarship organization awards the money. Ask it how the award is paid to the school. |
| South Dakota | All or part of tuition and fees at a qualifying school. | The scholarship organization mails a check to the school. It is made out to the parent, who endorses it to the tuition account. |
| Virginia | Tuition, instructional fees, materials, textbooks, workbooks and supplies. | The foundation pays by check made out to and mailed to the school you choose. |
How to apply
You apply to a scholarship organization, which sets its own dates. Each state page names where to start.
| State | When to apply | Next step |
|---|---|---|
| Kansas | Parents submit an application that goes to a scholarship organization and to the Kansas State Department of Education, which confirms eligibility. | TCLISS explained Official site |
| Missouri | You apply through one of the state-approved Educational Assistance Organizations, not to the state directly. | MOScholars explained Official site |
| Montana | Apply to an approved Student Scholarship Organization. The Department of Revenue lists them on its Education Donations portal. | SSO tax credit explained Official site |
| Nevada | There is no state application and no single deadline. You apply directly to one of the five registered scholarship organizations, and each sets its own dates. Apply to more than one, and early. | Opportunity Scholarship explained Official site |
| Pennsylvania | You apply to a scholarship organization, not to the state, and each one sets its own dates. Many schools work with one or more organizations, so ask the school first. | EITC / OSTC explained Official site |
| Rhode Island | Apply to a qualified scholarship organization. The Division of Taxation lists them. | RI scholarship tax credit explained Official site |
| South Dakota | The 2026-27 application opened January 26, 2026 with a May 31 deadline. Expect a similar window for 2027-28. | Partners in Education explained Official site |
| Virginia | There is no state application and no state deadline. Start with a participating private school; approved scholarship foundations award the scholarships. | EISTC explained Official site |
All dates in one place: every application window, with a calendar you can subscribe to.
Questions parents ask
Which states have tax-credit scholarships?
By our count of official sources (October 2026), at least 18 states. Kansas, Missouri, Montana, Nevada, Pennsylvania, Rhode Island, South Dakota and Virginia run one as their main program, and Alabama, Arizona, Florida, Georgia, Indiana, Iowa, Louisiana, Ohio, South Carolina and Utah run other tax-credit scholarships.
How much is a tax-credit scholarship in each state?
Kansas: up to $8,000 per student per year; Missouri: up to $7,145 per student for 2026-27, more for some students; Montana: set by each scholarship organization; Nevada: up to $10,367 per student for 2026-27; Pennsylvania: set by each scholarship organization. Opportunity Scholarships go up to $8,500, or $15,000 for a student with a disability; Rhode Island: about $3,245 on average (2024); South Dakota: about $2,457 on average (2025-26); Virginia: up to the state share of per-pupil public school funding where you live.