Education Freedom Tax Credit in Texas
Texas has opted in. Beginning January 1, 2027, Texans can give up to $1,700 ($3,400 for married couples) to a qualifying scholarship group and get it back as a federal credit.
Is Texas Participating?
Yes. Texas has opted in and appears on the IRS list of participating states for 2027. That means qualifying Texas scholarship granting organizations can receive gifts that earn donors a federal tax credit starting January 1.
- Texasis on the IRS list
- Up to $1,700Per individual
- Up to $3,400Married filing jointly
- Jan. 1, 2027Gifts qualify beginning
Sources: IRS participating states page (opens in a new tab), Treasury EFTC FAQ (opens in a new tab)
Where you can give
Give to any approved scholarship granting organization on a participating state's IRS list, including Texas organizations, no matter where you live.
Your federal credit
A dollar-for-dollar credit of up to $1,700 per person, or $3,400 on a joint return. It is nonrefundable, and unused credit carries forward up to five years.
Texas state taxes
Texas has no state personal income tax, so there is no separate Texas credit to claim and nothing that reduces your federal credit.
Where scholarships go
Scholarships go to eligible students who live in Texas, for qualified K-12 expenses such as tuition, tutoring, special education services, books, and supplies.
How Texas's Participation Works
Texas took the first step by opting in. Next comes a list of approved scholarship groups, which the IRS publishes before gifts qualify for the credit.
States opt in
Governor Abbott opted Texas in, and the state is on the IRS list. This is a federal program Congress already authorized, and a new governor does not change that.
States list their SGOs
Texas must submit its approved organizations to the IRS by February 15, 2027.
The IRS publishes the list
The IRS posts the final list, and donors should confirm a group is on it before giving.
What It Means for Texas Students
Texas students from eligible households may receive scholarships funded by gifts to approved organizations beginning in 2027.
Who may be eligible
Students who could enroll in a Texas public school and live in a household earning no more than 300 percent of the area median income may qualify. Treasury estimates about 95 percent of children meet the income limit.
How scholarships are awarded
Each organization sets its own application and award process. Eligibility does not guarantee a scholarship, so families should contact approved organizations directly.
Estimate Your Credit
Enter your filing status and planned gift to see your potential federal credit. The credit is dollar for dollar, capped at $1,700 per person.
Try the credit calculator
See how much of your federal tax you could redirect to scholarships. It takes about 20 seconds.
Estimate your creditYour Texas Timeline
Here are the dates that matter for Texas donors and families, from today through your 2028 tax filing.
Now: Learn and sign up
Learn how the credit works and sign up to be notified when gifts open.
January 1, 2027: Gifts open
Qualified cash gifts to approved Texas organizations can begin earning the federal credit.
February 15, 2027: SGO lists due
Texas submits its approved scholarship organizations to the IRS.
2028 filing season: Claim
File Form 8525 with your 2027 return, using your donor number.
Texas Scholarship Granting Organizations
Scholarship granting organizations are nonprofits that collect gifts and award scholarships. Texas organizations must be approved by the state and listed with the IRS before gifts qualify.
Questions to ask any SGO
Are you on the IRS list? How do I get my acknowledgement and donor number? How much of each gift goes to scholarships?
Texas SGO list
Texas must submit its list to the IRS by February 15, 2027. We will add approved Texas organizations here once the list is published.
New to SGOs? Read What Is an SGO? or follow a gift in How a Scholarship Donation Reaches a Student.
Donor Resource Catalog
Official sources, tools, and guides for Texas donors.
Official sources
IRS Federal Scholarship Tax Credit page (opens in a new tab)
IRS announcement (IR-2026-117) (opens in a new tab)
Treasury press release (opens in a new tab)
Treasury and Education Department FAQ (PDF) (opens in a new tab)
Proposed regulations (opens in a new tab)
Temporary regulations (opens in a new tab)Tools
Guides
How to give and claim
Credit vs. deduction
What is an SGO?
How a donation reaches a student
See all participating statesFor tax professionals
Form 8525 and donor acknowledgement guidance for client gifts is covered in How to give and claim.
More state pages are added as they go live. Start with the state guide.
Be Ready on January 1
Texas is in. Sign up now and we will notify you the moment gifts open on January 1, 2027.
Notify me when it opensThis page is general information, not tax advice. Consult a tax professional about your situation.
Texas FAQs
Yes. Texas has opted in and is on the IRS list of participating states for 2027. Gifts to approved Texas organizations qualify for the federal credit beginning January 1, 2027.
Yes. You can give to any approved organization on a participating state's IRS list, regardless of where you live. Scholarships funded by your gift go to eligible students in that organization's state.
Up to $1,700 per person, or $3,400 for married couples filing jointly, for qualified cash gifts. Each spouse claims based on their own gifts.
No. The credit is claimed on your federal return and does not require itemizing. You cannot also deduct the portion of a gift used for the credit.
No. Texas has no state personal income tax and no state credit for these gifts. Only state credits claimed for the same gift reduce the federal credit, so your full $1,700 limit applies.
Yes, since Texas has opted in. Donors in any state can give, but gift money goes only to families in opted-in states. Eligible Texas students may receive these scholarships once approved Texas organizations are in place. Students must be able to enroll in public school and meet the household income limit.
Check the IRS list of approved organizations once Texas submits its list by February 15, 2027. Confirm the organization is listed before you give, and keep its written acknowledgement.
Not yet. Treasury released proposed and temporary regulations in October 2026. You may rely on the proposed rules for 2027 gifts if you follow them in full, but final rules may change.
Pledge your gift.
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