Idaho families seeking more flexibility in their children’s education now have access to a new state tax-credit program to help make their children’s education more accessible. Starting in the 2025-2026 school year, eligible families can receive refundable tax credits to help pay for education-related expenses like tuition, tutoring, and more!
Idaho is the second state to pass a state-run private school choice law and the first to pass a tax-credit program law in 2025.
What is the Idaho Parental Choice Tax Credit Program?
The Idaho Parental Choice Tax Credit Program, signed into law February 27, is designed to provide eligible families with a refundable tax credit of up to $5,000, and up to $7,500 for students with special needs, for educational expenses. The bill aims to provide parents in the Gem State the opportunity to choose an educational environment that best fits their children’s needs. Whether a student is attending private school, receiving tutoring or using specialized curriculum, this program is designed to help make education more accessible.
What is a Tax-Credit Program?
A refundable tax credit means families can receive tax credits to help cover education costs like tutoring, tuition, and more. Families can receive the full benefit even if they owe little or no income tax. For example, if a family qualifies for a $5,000 refundable tax credit but only owes $2,000 in state income taxes, the family receives the extra $3,000 as a refund to help pay for their child’s education.
Who is eligible for the Idaho Parental Choice Program?
While all eligible families are free to apply, the program prioritizes students most in need including low-income families and students with special needs. Families earning up to 300% of the federal poverty level will receive priority and may even have the option to receive advance payments to cover upfront educational costs.
Starting in 2027, priority will be given to families who received the tax-credit in the previous year.
To be eligible for the Idaho Parental Choice Program, a student must be enrolled in a private or non-public school (homeschooling, microschooling, and private schools) and not enrolled full-time or part-time in a public, including traditional, charter, magnet, or online public schools.
The State of Idaho created an easy to use eligibility checklist to help families understand their eligibility!
How will families participate in the program?
The Idaho Parental Choice Tax Credit program has a first come, first served application process. Priority will be given to families with a modified adjusted gross income less than 300% of the federal poverty level. If your family is not eligible for priority status you will be placed on a waitlist.
The state of Idaho launched MySchoolChoice.idaho.gov to walk families through the application process. Here is a summary of the steps:
- Make sure you have filed your income taxes from the previous year by November 1.
- Register for a TAP Account no later than December 1 to apply for the parental choice tax credit or advance payment.
- Keep receipts of all qualifying expenses from 2025.
- Apply online through your Taxpayer Access Point (TAP) account From January 15 through March 15.
Families who meet eligibility requirements for priority status can also request an advance payment of the tax credit. That means they can apply to receive funding for all or part of their student’s qualifying education expenses for 2026.
It’s good to note that families who didn’t receive advance payments can claim the credit while filing their state taxes, and if the credit exceeds their tax liability, they will receive a refund.
What are the eligible expenses?
Families in Idaho can use the tax credit to cover a wide range of education expenses including:
- Private school tuition and fees;
- Tutoring services;
- Curriculum and textbooks for private and home education;
- Standardized test fees such as those for SAT, ACT, or advanced placement exams;
- Transportation costs to and from private school or learning program;
- Online learning course fees for virtual private school programs;
- Specialized therapies for students with special needs;
- Educational technology like software required for coursework.
When will the Idaho Parental Tax-Credit Program be available?
The Idaho Parental Tax-Credit Program will be available starting during the 2025-2026 school year. This means that parents who had qualifying educational expenses in the 2025 calendar year (and save their receipts!) will be eligible to receive a tax-credit or refund in spring of 2026.
Other school choice options in Idaho
Along with Idaho’s tax credit program, the state provides various school choice options for K-12 students. For example, the Empowering Parents Grant provides public school families funding for additional resources such as technology and tutoring. Additionally, Idaho LAUNCH offers high school students financial support for career and technical training courses.
In addition to these options, Idaho families have a range of educational choices, including traditional public schools, public charter schools, public magnet schools, online learning, homeschooling, microschooling and mix-and-match learning.
Learn more
Idaho has become the second state to enact or launch a private school choice program in 2025, joining 33 other states that have implemented a school choice program. To help with implementation of the Idaho Parental Choice Tax Credit program, the State of Idaho launched a website to guide families through the process. Idaho Kids Win also answers frequently asked questions regarding the program and has staff on standby to answer parent questions.
Over 240,000 students nationwide use tax-credit scholarships to personalize their education. As Idaho’s new scholarship program is established, we expect to receive more details. Stay tuned for further updates!
Discover More
To learn more about all the education options available in Idaho, visit the Idaho State Roadmap.
