Arizona State Tax Credits
Our office frequently receives inquiries about tax reduction strategies. One of the benefits of residing in Arizona is the opportunity to utilize various state tax credits. These credits can help achieve two key financial goals.
Firstly, you may qualify to make a charitable donation to a cause you support. By contributing to your chosen organization, you can make a meaningful impact on a cause you care about.
Secondly, depending on your filing status, you may receive a tax credit. It’s important to note that a tax credit differs from a tax deduction. A tax credit provides a dollar-for-dollar reduction in the amount of tax you owe, whereas a tax deduction reduces your taxable income.
The Arizona tax credit program allows you to distribute your charitable donations across multiple entities. The following list offers guidance on these credits:
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This individual income tax credit is available for donations to Qualifying Charitable Organizations that support Arizona residents in need. Eligible recipients include those receiving Temporary Assistance for Needy Families (TANF) benefits, low-income residents, and individuals with chronic illnesses or physical disabilities.
The maximum QCO credit donation amount for 2025:
$495 single, married filing separate or head of household; $987 married filing jointly. -
This individual income tax credit is available for donations to Qualifying Foster Care Charitable Organizations that support Arizona residents in need. Eligible recipients include those receiving Temporary Assistance for Needy Families (TANF) benefits, low-income residents, individuals with chronic illnesses or physical disabilities, and at least 200 qualifying individuals in the foster care system.
The maximum QFCO credit donation amount for 2025:
$618 single, married filing separate or head of household; $1,234 married filing jointly. -
Arizona offers tax credits for donations to Certified School Tuition Organizations, which provide scholarships to students attending private schools in the state.
The maximum Original Individual Income Tax Credit donation amount for 2025:
$769 single, married filing separate or head of household; $1,535 married filing jointly. -
Arizona offers tax credits for donations to Certified School Tuition Organizations, which provide scholarships to students attending private schools in the state.
The maximum Switcher Individual Income Tax Credit donation amount for 2025:
$766 single, married filing separate or head of household; $1,527 married filing jointly. -
The Arizona Public School Tax Credit program enables Arizona taxpayers to donate to the public school of their choice and receive a dollar-for-dollar credit on their state taxes.
You can search for eligible schools here (click here).
The maximum credit allowed for 2025 is $200 for single filers, heads of household and married filing separate filers and $400 for married filing jointly.
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By contributing to this valuable fund, you can support Arizona veterans in need while benefiting from a dollar-for-dollar tax credit on your Arizona state tax return. The fund has a $1 million cap for refundable tax credits, so it’s advisable to make your contribution early in the year. Once the $1 million limit is reached, any additional contributions must be returned. Therefore, donating early ensures you receive the tax credit. If you donate after the cap is reached, your contribution will be refunded.
The contribution limits for 2025 are $200 for single filers and $400 for joint filers.
The Arizona Military Family Relief Fund (MFRF) was established to provide financial support to service members, veterans, and their families facing unexpected financial hardships due to military service. The MFRF program aims to help these individuals overcome financial obstacles, offering assistance for expenses such as rent, mortgage, utilities, car payments, and more.
Reach out to learn more
Raymond James and its advisors do not offer tax advice. You should discuss any tax matters with the appropriate professional.
