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 AZ standard deduction of $14,600, and then owes the flat 2.5% rate, or $885, in State Income tax for 2025.  Sammy can make a donation to a Qualified Charitable Organization (QCO) of up to $495 before April 15, 2026 , and reduce their 2025 tax liability from $885 to $390, essentially redirecting $495 of what they would have owed to the Charitable organization! If Sammy already withheld their full AZ tax liability ($885) in AZ taxes through their payroll, and then made a donation to a QCO of $495 reducing their liability, Sammy now receives the $495 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 $495 to a QCO, Sammy has a remaining tax liability of $390.  They can still contribute the maximum 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 $695 of their AZ tax liability ($495 QCO, $200 PS).  Because Sammy withheld $885 through payroll, and after their donations only owe $190, Sammy will receive a tax refund of $695.