Idaho Tax Credit Subsidizing Private School is Law: What You Need to Know
The state passed its first tax credit to help K-12 parents recover private and homeschooling education expenses.


Idaho parents with children enrolled in a private or homeschool may be eligible for a new refundable tax credit.
Idaho Gov. Brad Little signed the Parental Choice Tax Credit program into law on Feb. 28, which would provide up to $5,000 per K-12 student for certain expenses related to the education, including tuition and fees for enrollment. For tax year 2025 and subsequent years, families with children aged 5 to 21 with disabilities would be eligible for up to $7,500.
The $50 million measure is designed to provide “even more abundant schooling options for Idaho students and families,” Little said in a press release, adding that the state recently contributed close to $17 billion into its K-12 public school system and increased public funding approximately 60% in the last few years.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
“Idaho can have it all – strong public schools AND education freedom,” added Little.
The bill passed in a Senate vote of 20-15, despite facing a flood of opposition from public school advocates and government officials.
Of note, President Donald Trump endorsed the measure saying it would provide the “very best education for their child.”
Some opponents raised concerns that subsidizing private schooling would impact public school funding in rural areas, while others argue it is unconstitutional because it supports directing taxpayer money to religious schools.
Here’s what you need to know about Idaho’s first educational choice program.
Parental Choice Tax Credit: Who's eligible?
All Idaho residents between the ages of five and 18 can participate in the Parental Choice Tax Credit program. Students who have a disability are eligible through age 21.
- For tax year 2025, the program will prioritize applicants with a modified gross income at or below 300% of the federal poverty level — $93,600 annually for a family of four.
- In 2027, priority will be given to parents who received the credit in the first two years of the program, followed by applicants with incomes below the mentioned threshold.
Does that mean there’s an income limit? No, there is no income limit to claim this credit. Only that priority will be given first to applicants at or under 300% of the federal poverty line.
Your child doesn’t have to be a former public school student to be able to apply for this credit, either.
What expenses will the credit cover?
Idaho’s Parental Choice Tax Credit will cover out-of-pocket qualifying expenses related to your child’s education in a non-public school. Specifically, these expenses include tuition and fees for enrollment at a private school, microschool, or learning pod — also known as homeschooling.
Academic instruction may be given in person, online, virtually, or via a combination of all the mentioned options, according to the legislation.
Other eligible expenses include:
- Tutoring
- National standardized test assessments
- Assessments used to determine college admission
- Industry-recognized certification exams
- Preparatory courses for standardized assessments, also known as “college-prep”
It also includes the cost of textbooks, curricula, and transportation to a private school, microschool, or learning pod. For tuition and fees to qualify, the school must be accredited or a parent must provide evidence of the child’s academic progress. This includes proof that the child is being taught in English language arts, mathematics, science, and social studies.
As noted, parents cannot claim the credit for any semester in which their child was enrolled full-time or part-time in a public school, public charter school, public virtual charter school, public magnet school, or part-time public kindergarten.
Are applications open?
The application period for Idaho’s latest education tax credit is projected to open January 15, 2026.
To apply, you must have claimed each eligible student as a dependent on your state individual income tax return. You must also be the only parent claiming the credit for the child.
At the time of applying, parents or guardians may opt to receive a one-time advanced payment for the refundable credit per eligible student. The payment will be delivered within 60 days, according to government officials.
As mentioned, priority will be given to applicants with an adjusted gross income at or below 300% of the federal poverty level.
Education leaders say the move is “anti-public school”
The Idaho Education Association, the state’s teachers union, characterized the measure as a push by “anti-public school” lawmakers.
IEA members and other pro-public school education voters sent thousands of emails and letters in opposition of the bill, now turned law, that gives a tax credit to parents of private school students.
Local reports reveal that before the bill was introduced, Idaho's House Revenue and Taxation Committee had received more than 1,000 emails, with 94% opposing the voucher program.
In short, the measure is taxpayer money directed toward private schools.
“Voucher proponents—eager to help out-of-state billionaires plunder Idaho's public school budget—are already planning how to exploit and expand this program during 2026's legislative session,” IEA President Layne McInelly said in a statement. “Each year, they will try to siphon more and more tax dollars away from public schools as a gift to private and religious schools and their patrons.”
Sen. Kevin Cook (R-Idaho Falls), who serves on the Senate Local Government and Taxation Committee, said the funding system for the credit may likely impact more than education.
“When somebody says it won’t affect public schools— it will affect everything,” Cook said. “It will affect your roads, your schools, your bridges, everything that we do here at the State of Idaho. It will affect (it) because you’re taking that money away.”
Note: This article has been updated to clarify the application period for the new tax credit.
Related:
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Gabriella Cruz-Martínez is a seasoned finance journalist with 8 years of experience covering consumer debt, economic policy, and tax. Before joining Kiplinger as a tax writer, her in-depth reporting and analysis were featured in Yahoo Finance. She contributed to national dialogues on fiscal responsibility, market trends and economic reforms involving family tax credits, housing accessibility, banking regulations, student loan debt, and inflation.
Gabriella’s work has also appeared in Money Magazine, The Hyde Park Herald, and the Journal Gazette & Times-Courier. As a reporter and journalist, she enjoys writing stories that empower people from diverse backgrounds about their finances no matter their stage in life.
-
What Boomers and Gen Xers Can Learn from Younger Colleagues
Whether you're Gen X or a baby boomer, your younger colleagues' opinions on work may help you find a new job or be happier in the one you've got.
-
Hurricane Season 2025: What Travelers Need to Know This Summer
A stormy season is brewing. NOAA is forecasting an active hurricane season. Here’s how to protect your trip and avoid costly disruptions.
-
Summer Programs for Kids at Risk Due to Trump Grant Funding Cuts
Tax Dollars Some after-school and summer programs may begin to cut back hours or shut down entirely due to federal cuts to volunteer programs.
-
Trump Tax Bill Targets Current EV Owners With New $250 Annual Fee
Tax Law Is the Trump administration about to make EV ownership more expensive?
-
Ohio Announces Two-Week Sales Tax Holiday Amid Tariffs, High Prices
State Tax Ohioans won't want to miss out on savings as pressure from tariffs spikes prices.
-
Five ‘Big Beautiful Bill’ Tax Changes to Watch in the Senate
Tax Policy The House passed its version of Trump’s "One Big, Beautiful Bill." Here’s what to look for as Senate Republicans take up the mega legislation.
-
Hawaii Approves First-of-its-Kind 'Green Fee' for Tourists: What to Know
State Tax Your trip to the Aloha State could be a bit more expensive next year. Here's why
-
Ask the Editor, May 30: Questions on the One Big Beautiful Bill
Ask the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the House-passed “One Big Beautiful Bill.”
-
Trump Tariffs: Will Walmart, Target and Nike Still Raise Prices in 2025?
Tax Law Walmart and other major U.S. retailers were bracing for price hikes due to steep tariffs, but now that could change.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers Qualify
Tax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?