Arizona School Tuition Organization (STO) Credit

Arizona has one of the most generous and longest-running state education tax credit programs in the country, allowing individual taxpayers to redirect a portion of their Arizona state income taxes — dollar for dollar — directly to a School Tuition Organization (STO) that funds private school scholarships for K-12 students, at no out-of-pocket cost. Arizona offers two tiers of credit: the Original STO Credit of up to $787 for single filers and $1,570 for married filing jointly, plus the Switcher (Overflow) Credit of up to $784 for single filers and $1,561 for married filing jointly — meaning a married couple can potentially redirect up to $3,131 in Arizona state taxes annually to fund educational scholarships. Unlike a charitable deduction, every dollar contributed reduces your Arizona tax bill by the same dollar, making this one of the most efficient tax planning tools available to Arizona residents. Watch the videos and download the flyers below to learn how the Arizona STO credit works, who qualifies, and how to claim it on your return.