Homeschooling has a reputation for being expensive, but this isn’t entirely true. If homeschooling a child required the same structure as a traditional school, then yes, homeschooling would be a true financial burden.
However, you don’t actually need to break the bank to set up a homeschooling structure. Of course, you have to spend money on educational materials like books, supplies, and curriculum materials. But homeschool parents can experience some tax relief through tax breaks and gain significant financial benefits.
Although there aren’t any tax breaks from the federal government for homeschool expenses, many states offer tax breaks that homeschooling families can benefit from.
In this guide, you’ll discover exactly what states offer tax breaks for homeschooling and how to claim them to take advantage of potential savings.
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Understanding Tax Breaks for Homeschooling
Homeschooling often comes with additional costs, but tax breaks can help offset these expenses. They provide financial assistance to ease the burden of education costs and support families who choose to educate their children at home.
Let’s understand what homeschool tax breaks are, why they exist, and how they vary between federal and state levels due to different rules.
What Exactly Is a “Homeschool Tax Break”?
Tax breaks are ways to reduce how much money you owe the government when you pay taxes. A homeschool tax break is a tax benefit that helps reduce taxes owed or taxable income, alleviating the financial burden associated with homeschooling.
There are two main types of tax breaks:
- Tax credits, which directly reduce the amount of taxes you owe. Like a refund, they’re money put back in your pocket. A refundable tax credit means you could get money back even if you owe no taxes.
- Tax deductions, which reduce your taxable income. This means you can remove homeschooling expenses from your income before calculating your tax bill. So, you pay less taxes overall.
However, homeschool tax breaks aren’t the same for all U.S. states. Some offer tax credits, others offer tax deductions, and many don’t even offer any at all.
Why Do Some States Offer Homeschooling Tax Breaks?
Many states offer homeschooling benefits as an incentive to school choice. The logic is that families that choose to educate their children at home should have the same support as those who attend public or private schools.
Another reason is to alleviate public school burdens, as challenges with overcrowding have been increasing in states like New York and New Jersey and impacting the delivery of quality education.
Students who learn at home save the state money by not attending public school. So, it’s only fair that homeschooling families receive some financial support for private school tuition to offset the full cost of their children’s education.
Federal vs. State Tax Breaks
One thing to keep in mind is that there aren’t any direct federal tax deductions or credits for homeschooling expenses. This means that homeschool parents can’t deduct the cost of online courses or educational supplies on their federal return.
The reasoning behind this lack of federal tax deductions is that homeschooling doesn’t match the IRS’s specific definition of what a school is. So, the tax agency considers homeschooling expenses to be personal, like groceries or clothes. Personal expenses aren’t deductible from federal taxes.
Still, some people can benefit from federal credits and deductions related to home, public, or private education.
Tax credits
The American Opportunity Tax Credit and the Lifetime Learning Credit are tax credits for education, available to students attending regular public or private schools.
Tax deductions
There’s also the Educator Expense Deduction, but this benefits K-12 teachers, not homeschoolers.
For more information about federal tax benefits, check the IRS official website or talk to a tax professional.
State-by-State Overview: Homeschool Tax Breaks (2025 Guide)
While there are no federal tax breaks for homeschooling, many states offer credits, deductions, or scholarships to help cover education expenses.
Here’s a quick overview of homeschool tax benefits by state, starting with Florida.
1. Florida: Does Florida Offer Tax Breaks for Homeschooling?
Currently, Florida doesn’t offer tax credits or deductions specifically for homeschooling. Still, homeschooling families can get around $8,000 per year for homeschooling expenses through the Personalized Education Program (PEP).
- What is it?
- A scholarship program funded by the Florida Tax Credit Scholarship Program.
- It provides Education Savings Accounts (ESAs) to eligible students, including most homeschoolers.
- Step Up for Students is a non-profit organization that manages Florida’s PEP scholarships.
- Who qualifies?
- K-12 Florida residents not enrolled full-time in a public or private school.
- Students must be at least five years old by September 1st of the school year.
- Families with any household income are eligible, but those with lower incomes have priority.
- What’s covered?
- Tuition and fees for home education programs, including virtual programs offered by Florida Virtual School
- Instructional materials, such as textbooks, workbooks, and digital resources
- Assessments related to postsecondary education, including advanced placement and industry certification exams
- Tutoring fees and other tutoring costs for part-time tutoring services provided by a certified educator
PEP also covers other costs, but we listed only the ones associated with homeschool expenses.
- How to claim it?
- Terminate your child’s enrollment in the school district education program.
- Apply through the current Florida Department of Education (FLDOE) approved scholarship-funding organization (SFO).
- Where to get more information?
2. Illinois
Illinois residents can benefit from the Education Expense Tax Credit on qualified education expenses.
- What is it?
A 25% tax credit for education expenses over $250, up to a maximum of $750 per family.
- Who qualifies?
- Illinois residents who are parents or legal guardians of a full-time K-12 student under the age of 21.
- The student must attend a public, private, or home school that meets the state’s requirements.
- Note: Not allowed if adjusted gross income (AGI) exceeds $500,000 for returns with married filing status or $250,000 for other returns.
- What’s covered?
- Tuition paid for a student who was in the equivalent of kindergarten through twelfth grade
- Fees for the purchase of students’ workbooks or teachers’ grade books that are significantly used during the activities of the class
- Book rental fees for books that were required as part of the student’s education program
- Curriculum rental fees for educational items, such as lectures or class lessons on DVD or tape
- Lab fees for the use of supplies, equipment, materials, or instruments that were required as part of a lab course in the student’s education program
- Shipping charges for qualified items
- Sales or use taxes paid for qualified items
- How to claim it?
- Complete the Schedule ICR, Illinois Credits, including the K-12 Education Expense Credit Worksheet, Lines 14 and 15 (check the instructions for the year you’re filing).
- Note: Parents filing separately can split the credit, but the total can’t exceed $750.
- Where to get more information?
3. Indiana
The Unreimbursed Education Expenses Deduction allows Indiana homeschool families to claim a $1,000 income tax deduction per dependent.
- What is it?
A deduction based on education expenses paid for each dependent child who is enrolled in a private school or is homeschooled in grades K-12.
- Who qualifies?
- Indiana parents or legal guardians of students enrolled in a private school or who are homeschooled.
- The child must be eligible to receive a free elementary or high school education in an Indiana school corporation.
- What’s covered?
- Tuition
- Fees
- Computer software
- Textbooks
- Workbooks
- Curricula
- School supplies (other than personal computers)
- Written materials used primarily for academic instruction, academic tutoring, or both
- How to claim it?
- On the taxpayer’s annual state tax return or returns in the manner prescribed by the Department of Revenue.
- Where to get more information?
4. Minnesota
Minnesota offers two tax relief programs (a deduction and a refundable credit) for qualifying K-12 education expenses.
The K-12 Education Subtraction
- What is it?
A state income tax deduction for K-12 education expenses that allows up to $1,625 for each dependent in grades K-6 and up to $2,500 subtraction for each dependent in grades 7-12.
- Who qualifies?
- Parents or legal guardians of a qualifying child attending kindergarten through 12th grade at a public, private, or qualified home school who paid qualified education expenses during the year.
- There’s no income limit, and you may qualify regardless of your filing status.
- What’s covered?
- Tuition, including nonpublic school, after-school enrichment, academic summer camps, music lessons taught by qualifying instructors, and tutoring
- Textbooks and instructional materials
- School supplies, musical instrument rental and purchase, and up to $200 of computer hardware and educational software
- How to claim it?
- Save your receipts, invoices, and other documentation that prove you paid qualifying expenses.
- Complete the Schedule M1M, Income Additions and Subtractions.
- Where to get more information?
The K-12 Education Credit
- What is it?
- A state income tax credit covering 75% of K-12 education expenses, up to $1,000 per family.
- It phases out for households earning over $33,500–$37,500, based on household income, including some non-taxable income.
- Who qualifies?
- Parents or legal guardians of a qualifying child attending kindergarten through 12th grade at a public, private, or qualified home school who paid qualified education expenses during the year.
- Those whose filing status is not Married Filing Separately.
- Those whose adjusted gross income is below a certain limit for the year.
- What’s covered?
- Tuition (except for nonpublic school), after-school enrichment, academic summer camps, music lessons taught by qualifying instructors, and tutoring
- Textbooks and instructional materials
- School supplies, musical instrument rental and purchase, and up to $200 of computer hardware and educational software
- How to claim it?
- Save your receipts, invoices, and other documentation that prove you paid qualifying expenses.
- Complete the Schedule M1M, Income Additions and Subtractions.
- Where to get more information?
Note: You may not use the same qualified education expenses to claim both the subtraction and the credit.
5. Louisiana
Louisiana homeschooling families can benefit from the School Expense Deduction for homeschool educational expenses.
- What is it?
A deduction from Louisiana taxable income equal to 50% of homeschool expenses, up to $6,000 per dependent.
- Who qualifies?
- Parents or legal guardians of K-12 students who claim the child as a dependent on their current or previous year’s Louisiana income tax return.
- The taxpayers who are approved by the Louisiana State Board of Elementary and Secondary Education (BESE) for homeschooling.
- What’s covered?
- Textbooks
- Curriculum materials
- How to claim it?
- Complete the Louisiana School Expense Deduction Worksheet, which must be attached to your state income tax return.
- Report the deduction on Schedule E of Form IT-540 (Resident Return), or Form IT-540B (Nonresident/Part-Year Return) for expenses paid while living in Louisiana.
- Where to get more information?
6. Iowa
Families who live in Iowa can benefit from the Tuition and Textbook Credit.
- What is it?
A tax credit for Iowa residents that covers up to 25% of the first $2,000 spent on educational expenses.
- Who qualifies?
Parents or legal guardians of K-12 students attending an accredited Iowa school or being educated at home under competent private instruction.
- What’s covered?
- Tuition for competent private instruction (as defined by Iowa law)
- Textbooks and instructional materials used for legally taught subjects
- Required supplies (e.g., notebooks, pens, backpacks, calculators)
- Driver’s education fees
- Activity fees (e.g., music, athletics, academic competitions)
- Instrument rentals and sheet music
- Materials for extracurricular and elective classes
- Field trip transportation (during school hours)
- School-related uniforms
- Basic materials for shop, home economics, ag, etc.
- How to claim it?
- Calculate qualifying expenses up to $2,000 per dependent.
- Multiply each amount by 25% to determine the credit.
- Enter total credit on Line 9 of the IA 1040 (Iowa Individual Income Tax Return).
- Where to get more information?
7. Arizona
If you’re a resident of Arizona, you can save money on homeschooling expenses through the Arizona Empowerment Scholarship Account (AZ ESA) program.
- What is it?
A state-funded program that gives families approximately $4,000–$9,000 per K-12 student per year to use toward flexible educational options, including homeschooling.
- Who qualifies?
All Arizona K-12 students, including homeschoolers.
Note: Parents must apply and sign a contract to provide instruction in reading, grammar, math, social studies, and science.
- What’s covered?
- Curriculum books and videos
- Online classes, co-ops, and tutorials
- Tutors
- Computer equipment
- Educational supplies and supplemental materials
- How to claim it?
- Create an ADEConnect account.
- Apply through the AZ ESA Portal.
- Where to get more information?
8. Ohio
Ohio residents can benefit from the Ohio Homeschool Tax Credit.
- What is it?
A nonrefundable state tax credit of up to $250 for qualifying homeschooling expenses.
- Who qualifies?
Ohio students exempt from compulsory school attendance due to homeschooling, verified by a letter from the local school district superintendent.
- What’s covered?
- Books
- Supplementary materials
- School supplies
- Computer software and apps
- How to claim it?
- Claim the credit on your Ohio tax return for the amount spent on qualifying expenses up to $250.
- You must provide receipts and proof of payment, such as bank or credit card statements.
- Where to get more information?
Ohio Department of Taxation
9. Georgia
Although Georgia doesn’t offer tax breaks specifically for homeschooling families, they may still benefit from certain education-related credits and deductions. For instance, Georgia provides tax credits for donations to Student Scholarship Organizations (SSOs), which sometimes support homeschoolers.
10. Wisconsin
Wisconsin also doesn’t offer any tax credits or deductions for homeschooling expenses. Check the Wisconsin Homeschooling Parents Association website to learn more about why homeschooling expenses aren’t deductible in Wisconsin.
11. South Carolina
Unfortunately, South Carolina doesn’t offer any specific tax breaks or scholarship programs for homeschooling expenses.
However, there are some other financial support options for South Carolina homeschoolers, such as private scholarships, co-ops, and support groups.
12. Pennsylvania
Pennsylvania doesn’t offer tax credits or deductions specifically for homeschooling expenses. Still, laws and tax policies can change, so it’s worth checking the Commonwealth of Pennsylvania website to stay up-to-date with any changes.
Quick Reference Chart: Homeschool Tax Breaks by State
Note: Tax laws and programs are subject to change. Always check with your state’s Department of Revenue or a tax professional for the latest information.
Important Considerations Before Claiming Homeschool Tax Breaks
Before claiming any homeschool-related tax break, keep the following in mind:
- Maintain expense records. Keep detailed receipts, invoices, and proof of payment for all qualifying education expenses. This documentation is required for credits, deductions, or reimbursements.
- Remember that homeschooling and distance learning aren’t the same. Tax breaks often apply only to families directly overseeing their child’s education at home, not those enrolled in full-time online or private institutions.
- Always check official sources. Be cautious about misinformation online. Check your state’s Department of Revenue or Department of Education website to stay informed and avoid denied claims or penalties.
3 Common Misconceptions About Homeschooling Tax Breaks
Many people assume certain tax benefits apply automatically, but that’s not true. Let’s debunk three common misconceptions regarding tax breaks for homeschooling.
- “All homeschool families get federal tax breaks.”
False. There are currently no federal tax credits or deductions specifically for homeschooling expenses. Tax relief comes primarily at the state level, and not all states offer it. - “You can write off your homeschool room.”
False. The IRS doesn’t allow deductions for rooms used to teach your children at home. That’s only possible if it qualifies as a business expense. For instance, if you run a licensed daycare or educational business from home. - “Homeschool curriculum is always deductible.”
False. Only a few states offer homeschool tax deductions or credits for curriculum costs, and there are specific criteria that must be met. Always check with your state’s tax authority to confirm what qualifies.
How To Maximize Homeschool Savings Even Without Direct Tax Breaks
Even if your state doesn’t offer any tax-free homeschool incentives or scholarships, there are still some strategies you can follow to maximize your savings.
Alternative Ways To Save
Here are some other ways to maximize your homeschooling budget.
Education savings accounts
Use tax-advantaged accounts, like ESAs, Coverdell ESAs, or 529 college savings plans, to pay for eligible homeschool expenses such as curriculum, tutoring, and testing fees.
Charitable donation credits
In states with programs like Georgia’s SSO credit, donations to scholarship organizations can indirectly benefit homeschoolers. Even if you don’t directly claim homeschool costs, you can support educational initiatives financially and reduce your tax liability.
Grants and discounts
Nonprofit homeschool groups and curriculum suppliers often offer grants, scholarships, or discounts on materials and co-ops. Many STEM or special needs programs provide partial tuition assistance, even in states without formal tax breaks.
Local homeschool groups
Joining a local homeschool group can help you save money by utilizing shared materials, online courses, or even free resources, while also exchanging information and support.
Florida-specific resources
In Florida, beyond the PEP ESA, consider exploring additional funding sources, such as curriculum vouchers and grant opportunities, that homeschool families can apply for throughout the year.
Ready to Maximize Your Homeschooling Savings?
Knowledge is power. Understanding how tax breaks and financial assistance programs work can make a huge difference in your homeschooling journey and your pocket.
Keep looking for tax breaks and other ways to save to make confident and cost-effective decisions.
But if you’re unsure what your state offers or want personalized guidance to plan your homeschool budget, we’re here to help.
At Everyday Montessori Education, we specialize in simplifying homeschooling logistics, budgeting, and planning—so you can focus on teaching and learning.
Book a free discovery call today and learn how we can support your homeschool goals, wherever you are in the process.
FAQ: Quick Answers About Homeschool Tax Breaks
Can I claim homeschool expenses federally?
No. Homeschooling expenses aren’t deductible on your federal taxes. The IRS considers homeschooling costs as personal expenses, which are not deductible on your federal tax return.
Which state has the best tax breaks for homeschooling?
Florida offers one of the most generous programs through its Personalized Education Program (PEP), providing Education Savings Accounts (ESAs) of around $8,000 per year to eligible homeschooling families.
Other states like Arizona, Minnesota, and Illinois also offer valuable homeschool tax credits, deductions, or scholarships, but amounts and eligibility vary.
Can homeschoolers deduct internet or computer expenses?
It depends on the state. Some states, like Indiana and Minnesota, allow deductions or credits that may cover educational supplies, including computer software and limited computer hardware (up to certain amounts).
How do I claim these tax breaks?
Keep receipts and follow your state’s tax forms and application process. Always check your state’s Department of Revenue or Education website for the most current claim process and eligibility criteria.