Did you know...

The Arizona Charitable Tax Credit allows Arizona Tax payers to reduce their tax liability (tax paid to the state) by the amount of the tax credit. 

Example: Sammy, a single person who makes $50,000/year in taxable income, takes the 2026 AZ standard deduction of $16,100, and then owes the flat 2.5% rate, or $848, in State Income tax for 2026.  Sammy can make a donation to a Qualified Charitable Organization (QCO) of up to $506 before April 15, 2027 , and reduce their 2026 tax liability from $848 to $342, essentially redirecting $506 of what they would have owed to the Charitable organization! If Sammy already withheld their full AZ tax liability ($848 or more) in AZ taxes through their payroll, and then made a donation to a QCO of $506 reducing their liability, Sammy now receives the $506 they “redirected” as a tax refund. 

 

You can claim both the Public School Tax Credit and the Charitable Tax Credit.

Example: Sammy also wants to use the Public School tax credit to help their niece participate in extracurricular sports.  The 2025 maximum allowable for Sammy to contribute to a public school is $200, since they are filing as a single person.  After contributing $506 to a QCO, Sammy has a remaining tax liability of $342.  They can still contribute the maximum single filer amount of $200 through the Public School Tax Credit without exceeding their tax liability, so they make the additional donation.  Sammy has now redirected a total of $706 of their AZ tax liability ($506 QCO, $200 PS).  Because Sammy withheld $848 through payroll, and after their donations only owe $142, Sammy will receive a tax refund of $706. 

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