Homeschool Funding in Minnesota

Minnesota K-12 Education Tax Credit and Subtraction

Minnesota is one of the most financially supportive states for homeschoolers, offering two meaningful tax benefits under Statute 290.0674:

Education Subtraction (Available to All Incomes)

You can subtract qualifying education expenses from your taxable income with no income limit:

• Up to $1,625 per child in grades K–6
• Up to $2,500 per child in grades 7–12

This is a subtraction from taxable income, meaning it reduces the amount of income subject to tax. The actual tax savings depends on your marginal tax rate.

Education Credit (Income-Limited)

Lower-income families may also qualify for a refundable tax credit of up to 75% of qualifying expenses:

• Maximum credit of $1,000 per child
• Phases out when income exceeds $77,550 (for tax year 2026)
• Fully phased out at $83,550 for families claiming one or two children

What Expenses Qualify?

Qualifying expenses for both the subtraction and credit include:

• Textbooks and curricula (must not be primarily religious in nature for credit purposes)
• Educational equipment — musical instruments, calculators, computers
• Transportation costs for field trips
• Instructional materials

Private tutoring fees and instructor fees qualify for the subtraction only (not the credit).

No ESA or Voucher Program

Minnesota does not currently have an Education Savings Account (ESA) or voucher program. The K–12 tax credit and subtraction are the primary state-level financial tools available to homeschool families.

Extracurricular Access

Minnesota law guarantees homeschooled students access to public school extracurricular activities, including sports, fine arts, speech and debate, drama, and music. Your child must reside in the school district, tryout on the same basis as enrolled students, and follow the same rules. Districts cannot charge homeschool families higher fees than public school students pay. Participation is limited to your resident school district — you cannot open enroll in another district for extracurriculars.