What If You Could Choose Where Your Arizona Tax Dollars Go?
Most of us want to help others. We want children in our community to have opportunities,
families in crisis to receive support, veterans and first responders to find the resources they
need, and neighbors facing difficult circumstances to know they are not alone.
The desire to help is often there, but life gets busy. We may not know which organizations are
doing meaningful work, which ones qualify for Arizona tax credits, or whether our contribution
will truly make a difference.
What many Arizonans don't realize is that our state gives taxpayers a unique opportunity to do
something about it.
You can choose where a portion of your Arizona state income tax dollars go.
Let's be honest: taxes are not usually a topic we look forward to discussing. Most of us work
hard, pay what we owe and then leave the decisions about how those dollars are spent to the
state.
But Arizona's tax credit programs give taxpayers another option.
Instead of allowing all the money you owe to flow into the state's general fund, you may be able
to redirect a portion of your Arizona state income tax liability to qualified nonprofits and schools
that support causes you believe in.
Across Arizona, local nonprofits are providing counseling, serving meals, supporting foster
children, helping families find stability, caring for veterans and creating opportunities for people
to rebuild their lives. Schools are giving students access to athletics, music, arts, field trips,
extracurricular programs and educational opportunities.
Through Arizona's tax credit programs, your tax dollars can help support that work.
And this is more than a charitable tax deduction. An Arizona tax credit can reduce your state
income tax liability dollar for dollar, up to the amount allowed for each program and your actual
Arizona income tax liability.
How Much Can You Redirect in 2026?
For the 2026 Arizona tax year, taxpayers may be eligible for several different credits.
Help a Local Nonprofit
Contribute to a Qualifying Charitable Organization (QCO) supporting Arizonans in need.
Up to $506 for individual filers
Up to $1,009 for married couples filing jointly
Support Children in Foster Care
Contribute to a Qualifying Foster Care Charitable Organization (QFCO) serving foster
children and families.
Up to $632 for individual filers
Up to $1,262 for married couples filing jointly
Strengthen an Arizona Public School
Support eligible extracurricular activities and programs at an Arizona public or charter school.
Up to $200 for individual filers
Up to $400 for married couples filing jointly
Create Private-School Opportunities
Contribute through a certified School Tuition Organization (STO) that provides scholarships for
students attending Arizona private schools.
Up to $1,571 for individual filers
Up to $3,131 for married couples filing jointly
The private-school tuition program includes two available credits—the Original Individual
Income Tax Credit and the additional credit, sometimes called the Switcher credit. Eligible
taxpayers who qualify for and use both credits can reach the combined totals shown above.
Your Potential 2026 Impact
If eligible to participate in all four categories, an individual filer could potentially redirect as much
as $2,909.
A married couple filing jointly could potentially redirect as much as $5,802.
You don't have to contribute the maximum or participate in every category. You can choose the
amount and organizations that fit your expected Arizona tax liability and the causes that matter
most to you.
Imagine a married couple who expects to have at least $5,802 in Arizona state income tax
liability for 2026. They could potentially direct:
● $1,009 to a qualifying charity serving Arizonans in need
● $1,262 to an organization supporting children in foster care
● $400 to an Arizona public or charter school
● $3,131 to certified organizations providing private-school scholarships
That's $5,802 supporting organizations and educational opportunities they selected
themselves.
This Is About Choice
One family may feel strongly about helping foster children. Another may want to support
veterans, mental health services, families experiencing hardship, athletics, music programs or
educational scholarships.
There is no single "right" choice.
That's what makes Arizona's tax credit programs so powerful: your tax dollars can reflect the
causes and communities that matter to you.
There is one important requirement to understand. You must have Arizona state income tax
liability to benefit from these nonrefundable credits.
That doesn't necessarily mean you have to owe money when you file your return. You may
receive a refund because taxes were withheld from your paycheck throughout the year and still
have Arizona income tax liability that can be offset by eligible credits. Generally, however, these
credits cannot reduce your Arizona income tax liability below zero.
Because every taxpayer's situation is different, it's always a good idea to review your expected
tax liability and eligibility with your accountant, tax preparer or financial adviser and keep your
contribution receipts for your tax records.
Find a Cause That Feels Like Yours
You don't have to already know which nonprofit, school or cause you want to support.
ChooseWhereYourTaxesGo.org was created to make that part easier.
It's a resource designed to help Arizona taxpayers understand their tax credit options, discover
qualifying nonprofits and schools, and connect with organizations doing work that matters to
them.
Instead of asking, "Where do my tax dollars go?"
Arizona gives us the opportunity to ask a different question:
"Where do I want them to go?"
Taxes may never become our favorite subject. But having a say in where some of those dollars
go and seeing them make a difference right here in Arizona—is something worth talking about.
Learn more and discover participating organizations and schools at
Tax credit limits shown are for the 2026 Arizona tax year and are based on information
published by the Arizona Department of Revenue. Tax laws and individual circumstances vary.
Consult a qualified tax professional regarding your eligibility and individual tax situation.