Indiana

Private School/Homeschool Deduction

  • Individual Tax Credit/Deduction
  • Enacted 2011
  • Launched 2011

Indiana’s Private School/Homeschool Deduction program is a tax deduction for individuals who make educational expenditures for private schools or home schooling on behalf of their dependent children.

We do not administer this program.

Eligibility Test Apply

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  • 57,628

    Participating Taxpayers (2022)

  • 13%

    of Families with Children Eligible Statewide

  • $1,840

    Average Tax Deduction (2022) per family

  • 17%

    Average Deduction as a Percentage of Public School Per-student Spending

Indiana’s Private/Homeschool Deduction Participation

Tax Returns Claiming Deduction
Tax Year
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Student Funding

Use of Funds

Qualifying expenses include tuition, fees, computer software, textbooks, workbooks, curricula, school supplies, and other written materials used primarily for academic instruction and/or academic tutoring.

Funding Amount and Source

The tax deduction is worth up to $1,000 per child. Families can take tax deductions for multiple children. Deductions are available for parents’ expenditures on either private schools or homeschooling for their children, including private school tuition, textbooks, fees, software, tutoring, and supplies. However, the tax deduction does not, in a practical sense, provide for increased choice or opportunity.

It is a very small amount when compared with the costs of private school tuition or time and curriculum required in the homeschool environment. The program does not place additional requirements on the private or homeschooling groups or schools, however. For this program to have a truly meaningful effect on families, the cap on the deduction would need to be increased dramatically. Moving closer to Wisconsin’s higher deduction funding cap ($4,000 per child in grades K–8 and up to $10,000 per child in grades 9–12) would be a positive step in that direction.

(Last updated June 10, 2024) 

Student Eligibility

Indiana’s Private School/Homeschool Deduction program is a good example of providing increased opportunity to parents without unduly burdening participating providers. The legislation permits all families with a child attending a private school or being homeschooled to receive a $1,000 state income tax deduction for each child in private school or homeschooling.

(Last updated June 10, 2024) 

EdChoice Expert Feedback

Indiana’s Private School/Homeschool Deduction program is a good example of providing increased opportunity to parents without unduly burdening participating providers. The legislation permits all families with a child attending a private school or being homeschooled to receive a $1,000 state income tax deduction for each child in private school or homeschooling. However, the tax deduction does not, in a practical sense, provide for increased choice or opportunity. It is a very small amount when compared with the costs of private school tuition or time and curriculum required in the homeschool environment. The program does not place additional requirements on the private or homeschooling groups or schools, however. For this program to have a truly meaningful effect on families, the cap on the deduction would need to be increased dramatically. Moving closer to Wisconsin’s deduction funding cap would be a positive step in that direction.  (Last updated December 18, 2023) 

Rules and Regulations

Program Guidelines

  • Income Limit: None
  • Prior Year Public School Requirement: None
  • Refundable: No
  • Enrollment Cap: None
  • Credit Value: N/A
  • Individual Deduction Cap: $1,000 per child
  • Testing Mandates: None
  • Special Needs Pathway: None

Participant and Family Guidelines

  • Click Here for the Program Administrator’s Parent Handbook
  • Education Requirements: N/A
  • Parent Supplemented Funds/Scholarships: Allowed
  • Miscellaneous:
    • Must claim unreimbursed expenses
    • Must claim the deduction on their annual state tax return or returns in a manner prescribed by the Department of Revenue
    • Must claim only unreimbursed education expenditures made in connection with enrollment, attendance, or participation of a dependent child in a private elementary or high school education program for qualifying expenses

(Last updated September 12, 2024)

Governing Statutes

Ind. Code § 6-3-2-22

(Last updated September 12, 2024)