Homeschool Funding in Indiana

Indiana Education Scholarship Account (ESA)

Indiana's Education Scholarship Account (ESA) program is available to students with disabilities and their siblings. Here is what homeschool families should know:

• Amount: Participants receive 90% of what the state would have spent on their behalf in a public school -- up to $20,000 for students with disabilities and up to $8,000 for siblings.
• Funding: The Legislature appropriated $10 million for the 2025-2026 fiscal year.
• Eligible Expenses: Any pre-approved educational expenses, including therapies, services, curriculum, tutoring, and educational technology.
• Restriction: ESA funds cannot be combined with the Indiana Choice Scholarship voucher program, but they can be combined with the School Scholarship Tax Credit program.

Indiana Choice Scholarship (Voucher)

Governor Mike Braun signed HB 1001 on May 6, 2025, making the Choice Scholarship Program universal by removing income eligibility requirements starting in 2026. Key details:

• Average Award: Approximately $5,800 per academic year.
• Limitation: This voucher can only be used for tuition and fees at non-public schools -- it cannot be used for homeschool expenses directly. However, homeschool families who enroll part-time in a qualifying private school may benefit.
• Largest Program: Indiana's Choice Scholarship is the largest private school voucher program in the United States.

Federal Tax Benefits

Starting in 2026, federal law allows up to $20,000 per year in tax-free withdrawals from 529 accounts for qualified K-12 expenses. Indiana's CollegeChoice 529 plan offers a state tax credit of 20% on contributions (up to $1,500 credit per year). The federal Coverdell ESA allows $2,000 per year per child in tax-free savings for K-12 expenses.