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New · Jan 2027

Federal Scholarship Tax Credit (2027)

From January 1, 2027, people in participating states can give up to $1,700 to a scholarship granting organization and claim a dollar-for-dollar federal credit. Texas said on December 10, 2025 that it would opt in.

The credit comes from the 2025 federal tax law. A donor gives to a certified scholarship organization and gets the same amount back on their federal return, up to $1,700.

The cutoff is 300% of area median income. Because the Austin area's median income is relatively high, that line sits well into middle-class territory for many Travis and Williamson County families.

TEFA has a fixed state budget, but this pool grows with donations. For an Austin family it could fill the gap between the award and a high school's tuition, or help a waitlisted child. We'll list the organizations that serve Central Texas once they're certified.

Combining it with other sources

Most families pair this with the school's own aid and one or two other sources on this site. A funding check lays out which combination works for your child and in what order to apply.

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Map out how your family pays for school

Answer a few quick questions and a School Funding Advisor will phone you with a plan. There's no cost and nothing to sign.

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