Student Funding

Parents may receive a refundable tax credit of a minimum of $5,000 up to a maximum of $7,500 per child to cover the cost of private school tuition and fees at an accredited private school. Tax credits are tiered based on the household income for the second year preceding (meaning the 2022 Adjusted Gross Income for the 2024 tax credit).

Qualifying expenses for students attending an accredited private school include tuition and fees. Taxpayers are instructed to keep their receipts.

The parent keeps any amount of the credit that exceeds their state tax liability. Payments are disbursed in two equal installments, so parents do not have to front the cost of tuition at the beginning of the school year.

Parents may receive a refundable tax credit of $1,000 per child to cover the cost of home education expenses.

Qualifying expenses for students educated at home include tuition and fees for nonpublic online learning programs; academic tutoring services provided by an individual or a private academic tutoring facility; textbooks, curriculum, or other instructional materials including, but not limited to, supplemental materials or associated online instruction required by an education service provider; and fees for nationally standardized assessments including, but not limited to, assessments used to determine college admission and advanced placement examinations; as well as tuition and fees for tutoring or preparatory courses for the assessments. An education service provider can include unbundled courses and services at a public school (district or charter). Taxpayers are instructed to submit their receipts to the Oklahoma Tax Commission.

Like the tax credit for tuition, a homeschool parent keeps any amount of the credit that exceeds their state tax liability.

(Last updated December 18, 2023) 

Student Eligibility

All Oklahoma students are eligible for a refundable tax credit under the Oklahoma Parental Choice Tax Credit program, provided they have education expenses at an accredited private school, or are “educated by other means” (homeschool). Tax credit awards for private school tuition are tiered, with the lowest income bracket receiving up to $7,500, and the highest income bracket receiving up to $5,000. Homeschool tax credit awards are up to $1,000, regardless of household income.

The program is stackable with Oklahoma’s other private choice programs, Oklahoma Equal Opportunity Education Scholarships (Tax-Credit Scholarship) and Lindsey Nicole Henry Scholarships for Students with Disabilities (voucher).

(Last updated December 18, 2023)

EdChoice Expert Feedback

Oklahoma’s refundable tax-credit program could provide thousands of families access to the schools that best fit the needs of their students but policymakers could do more to expand educational opportunity.

All Oklahoma students are eligible to receive a scholarship via this program. Statewide, fewer than one percent of students participate in one of Oklahoma’s private educational choice options (including the Lindsey Nicole Henry Scholarships for Students with Disabilities and Oklahoma Equal Opportunity Education Scholarships).

Initial scholarship amount will range from $5,000 to $7,500, or about 50 to 74 percent of the average expenditure per student at Oklahoma’s district schools, for recipients attending private schools.

For tax year 2024, the tax credit program is capped at $150 million. For tax year 2025, the cap is increased to $200 million. For tax year 2026 and subsequent years, the cap will be $250 million, or equivalent to 8.4% of Oklahoma’s total K–12 revenue.

The homeschool credits are capped at $5 million.

In order to expand access to educational choice, Oklahoma policymakers should significantly increase the amount of available refundable credits for both the private schools and homeschool components. Use for the private school tuition credit could also be expanded to offer families more freedom in customizing their child’s education.

While the homeschool credit of $1,000 (about 10% of the public school expenditure) will help families who are already customizing and unbundling their child’s education, the credit amount should be increased so more families can have access to a fully customized and unbundled home education.

Oklahoma’s refundable tax credit is a novel funding mechanism and a promising advancement in educational freedom for Oklahoma families.

(Last updated December 18, 2023)

Rules and Regulations

• Income Limit: None – Low-income priority 
• Prior Year Public School Requirement: None 
• Geographic Limit: Statewide 
• Enrollment Cap: None 
• Credit Value: 100% 
• Individual Credit Cap: $5,000 to $7,500 (private school) / $1,000 (homeschool) 
• Testing Mandates: None 
• Budget Cap: 2024 – $150 million, 2025 – $200 million, 2026 and thereafter, $250 million; Homeschool – $5 million 

Parent Requirements: 

• Only claim the credit for qualified expenses to provide an education for an eligible student 
• Ensure no other person is claiming a credit for the eligible student 
• Not claim the credit for an eligible student who enrolls as a full-time student in a public school district, public charter school, public virtual charter school, or magnet school 
• Comply with rules and requirements established by the Commission for administration of the Oklahoma Parental Choice Tax Credit Program 
• Retain receipts, and in cases of homeschoolers, submit receipts 
• Eligible students may accept a scholarship from the Lindsey Nicole Henry Scholarships for Students with Disabilities Program while participating in the Oklahoma Parental Choice Tax Credit Program. 

School Requirements: 

• Private schools must be accredited by the State Board of Education or another accrediting association 

(Last updated December 18, 2023)

Governing Statutes

Okla. Stat. tit. 70 § 28-100 – 103 

(Last updated December 18, 2023)

Legal History

No legal challenges have been filed against the program. 

(Last updated December 18, 2023)