Minnesota

K–12 Education Credit

  • Individual Tax Credit/Deduction
  • Enacted 1997
  • Launched 1998

Minnesota provides a tax credit covering 75% of educational expenses for resident students in any private or public school, including homeschooling or schools located in North Dakota, South Dakota, Iowa, or Wisconsin. The tax credit reduces the family’s total tax liability and covers tuition, fees, textbooks, a maximum expense of $200 for computer hardware and educational software, and the cost of transportation paid to others.

We do not administer this program.

Eligibility Test Apply

Jump Links

  •  44,825

    Participating Taxpayers (2023)

  • 30%

    Students Eligible Statewide

  • $341

    Average Tax Credit Value (2023)

  • 2%

    Value as a Percentage of Public School Per-Student Spending

Minnesota’s K–12 Education Credit Participation

Tax Returns Claiming Credit
Tax Year
Download Chart

Student Funding

Use of Funds

Qualifying expenses include tuition, fees for instruction outside the regular school day, textbooks, a maximum expense of $200 for computer hardware and educational software, and the cost of transportation paid to others.

Funding Amount and Source

The maximum credit amount is adjusted by income level. Families with adjusted gross annual incomes not greater than $70,000 may claim $1,500 per child

For families with adjusted gross income over $70,000, families with one qualifying child in kindergarten through grade 12 have the maximum credit reduced by $1 for each $4 of adjusted gross income over $70,000, and families with two or more qualifying children have the maximum credit reduced by $2 for each $4 of adjusted gross income over $70,000. In no case is the credit less than $0.

Any refunds are funded by an appropriation to the commissioner from the general fund.

(Last updated July 18, 2024)

Student Eligibility

Only students from families who meet certain income restrictions can claim the credit. A family with one or two children must have an adjusted gross income of less than $76,000 to be eligible for the credit, and the income ceiling is raised an additional $3,000 for each child after the first two. The household income limits are adjusted to keep pace with inflation each year. Also, parents must be tax filers and have proof of eligible expenses. The refundable tax credit is phased out for taxpayers who earn more than $70,000. For families with one child, the maximum allowable credit is reduced by $1 for every $4 of income above $70,000, and the family may not claim the credit at all if its income is above $76,000. For families with two or more children, the maximum allowable credit is reduced by $2 for every $4 of income above $70,000.

(Last updated July 18, 2024)

EdChoice Expert Feedback

Minnesota’s Education Credit is plagued by complexities that make it difficult for the average taxpayer to utilize. A more streamlined program with universal eligibility would greatly enhance this program. Although this credit covers education expenses outside tuition, for both public and private schools, those expenses are usually a fraction of what tuition costs and prohibit religious instruction. Purchasing power is low. This program should boost funding by allowing private school tuition to be counted toward the credit. Moving toward a model more like Oklahoma’s refundable tax credit for educational expenses would be of great benefit to families using this program.   (Last updated December 18, 2023) 

Rules and Regulations

Program Guidelines

  • Income Limit: Conditional ($70,000 for full credit, $76,000 for families up to two children and an additional $3,000 per child)
  • Prior Year Public School Requirement: None
  • Enrollment Cap: None
  • Credit Value: 75%
  • Taxpayer Credit/Deduction Cap: $1,500/child or less depending on income
  • Testing Mandates: None
  • Special Needs Pathway: None

Participant and Family Guidelines

  • Click Here for the Program Administrator’s Parent Handbook
  • Education Requirements: Private school tuition not allowed as an expense
  • Parent Supplemented Funds/Scholarships: Allowed
  • Miscellaneous:
  • A married parent must ensure filing status is not married filing separate
  • May not include self-transportation as an expense

(Last updated September 18, 2024)

Governing Statutes

Minn. Stat. § 290.0674

(Last updated March 1, 2023)