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New · Jan 2027

Federal Scholarship Tax Credit (2027)

From January 2027, taxpayers in participating states can claim a federal credit of up to $1,700 for donations to scholarship granting organizations. Texas said on Dec. 10, 2025 that it will take part.

Congress created the credit in the 2025 federal tax law. A donor gives up to $1,700 to a certified scholarship organization and takes a dollar-for-dollar federal credit, so the gift costs the donor nothing beyond timing.

The income test uses 300% of area median income. Because Dallas-area median incomes are relatively high, a large share of families in our six counties should fall under it, including many who landed in TEFA's lower-priority tiers.

For Dallas families the credit is most useful in two places: closing the high school tuition gap that TEFA leaves, and covering a waitlisted child. We will list the organizations serving North Texas once the state publishes its certified list.

Combining it with other sources

Few Dallas families pay with one source alone. This one generally stacks with a school's own discounts and need-based aid and with at least one other source on our funding list, and the funding check lays out the combination that fits your child.

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See which Dallas-area funding your child can use

Answer a few questions and a School Funding Advisor will phone you with a plan built around your district, your schools and the 2026-27 amounts. It's free, and you're under no obligation.

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