Homeschool Funding in South Dakota

South Dakota Tax-Credit Scholarship Program

South Dakota operates a Tax-Credit Scholarship Program known as Partners in Education. Businesses and individuals who donate to approved scholarship-granting organizations receive a state tax credit of 80% of the donation amount. The program has an annual funding cap of approximately $3 million.

Key details about the scholarship program:

• Scholarships average approximately $2,200 per student
• Roughly 1,771 students and 48 schools participated in the 2024-25 school year
• The program primarily funds attendance at private schools, and direct applicability to homeschool families should be confirmed with the scholarship-granting organization

Federal Tax Credit Scholarship Program (Starting 2027)

South Dakota has opted into the federal tax credit scholarship program set to launch in 2027. Under this program, South Dakotans who owe federal income taxes can donate up to $1,700 to a government-recognized scholarship-granting organization rather than sending that amount to the federal government. These funds can then be directed to public, private, or homeschool entities in the state.

This is significant for homeschool families because it explicitly includes homeschool as an eligible use of funds. Watch for additional details as the program rolls out.

No State ESA or Homeschool Voucher

South Dakota does not currently offer a state-level ESA or direct voucher program for homeschoolers. A proposed ESA of approximately $3,000 per student was defeated in previous legislative sessions. Future legislative action is possible, so stay informed through local homeschool organizations.

Federal Tax Benefits

South Dakota homeschool families can take advantage of:

• Coverdell Education Savings Accounts: Contribute up to $2,000 per year per child and withdraw tax-free for qualifying K-12 expenses
• Note: South Dakota has no state income tax, so state-level tax deductions are not applicable. The federal Coverdell ESA and the upcoming federal scholarship program are your primary financial tools.

Free Public School Activities

One practical financial benefit: South Dakota law guarantees homeschooled students access to public school athletics, fine arts, and activities at no additional cost. This eliminates the need to pay for private leagues or programs for many extracurricular interests.