Leveraging ESA’s, School Vouchers, and Tax Credits to Make a Private Online School Affordable
School vouchers and tax credit programs can make a high-quality private online education more affordable for families.
In today’s educational landscape, many families are exploring flexible, high-quality online schooling options for their children in grades 6–12. One common concern, however, is affordability- but school vouchers, Education Savings Accounts (ESAs), and tax credit programs in various states are helping families offset or even cover the cost of an online private school education. This means an accredited online education through a school like Constellation Learning Institute – can be within financial reach. In this post, we’ll explore how families can leverage these programs, with examples of generous state initiatives, and explain how they work (eligibility, amounts, restrictions) to make an online private school education accessible for your child.
Understanding Vouchers, ESAs, and Tax Credit Programs
School vouchers and ESAs are state-funded programs that allocate public education funds for use toward private schooling or other educational expenses. In voucher programs, the state pays tuition (or part of it) at a private school on the student’s behalf. With ESAs, funds are deposited into an account for the family to spend on approved educational costs (tuition, books, online courses, etc.). In fact, as of 2025, 15 states offer “universal” school choice programs open to all or most K–12 students (edweek.org.)
Tax credit programs come in two forms: tax-credit scholarships (where individuals or businesses donate to scholarship funds in exchange for a tax credit, and those funds are awarded to students for private school), and personal tax credits or deductions (where parents can claim a credit or deduction on their state taxes for tuition or educational expenses). These programs can also significantly benefit families, especially in states that impose high income caps or none at all for eligibility.
Generous State Programs That Can Help Pay for Online Private School
Let’s look at several state programs – in Arizona, Florida, Utah, Indiana (and more) – that offer substantial funding which families can use toward private online school tuition. Each of these programs has different rules, and could cover a large portion of an online school’s tuition. Also take special note of the Texas House’s passing of a bill to create a $1B private school voucher program, which will provide up to $10,000 per student to attend a private online school.
Arizona: Empowerment Scholarship Accounts (ESA)
Arizona pioneered the ESA concept and now has the most expansive program in the nation. Every K–12 student in Arizona is eligible to apply for an Empowerment Scholarship Account – there are no income limits or prior public school requirement. The ESA provides about 90% of the state’s per-pupil funding to families in an account for educational use. In dollar terms, the typical student receives approximately $7,000–$8,000 per year for education expenses, which can be used for private online school tuition. Constellation Learning Institute, as an accredited private academy, qualifies as a “qualified school” for Arizona’s ESA, so families can use their ESA funds toward Constellation’s tuition and fees.
Florida: Family Empowerment Scholarship ESA
Florida has dramatically expanded its scholarship programs in recent years. The Family Empowerment Scholarship (FES) now functions as an ESA that is virtually universal in eligibility. Any K–12 student in Florida can receive scholarship funds for private education, with no strict income cutoff to participate. For the 2024–25 school year, the average scholarship amount was around $7,700–$8,100 per student, varying slightly by grade level and county. Families can use the funds for private online school tuition. Florida’s program is administered through scholarship organizations (like Step Up for Students), and families fill out a single application to be matched with either the FES or Florida’s tax-credit scholarship. Constellation Learning Institute meets Florida’s private school accreditation standards, so Florida families can apply their FES ESA funds to enroll in our online program. This is a huge opportunity for families in Florida to obtain tuition-free or greatly reduced-cost enrollment.
Utah: “Utah Fits All” Scholarship (ESA)
Utah recently launched the Utah Fits All Scholarship Program, an ESA designed to be universal. Starting in the 2024–25 school year, Utah set aside funding for up to 10,000 students to receive scholarships. Each student awarded the scholarship gets $8,000 for the year to spend on educational expenses – which can fully cover or significantly defray private online school tuition. Every K–12 Utah student is technically eligible (no income limit). The $8,000 ESA amount is one of the most generous in the nation. Utah’s program is new, so families should stay alert to application deadlines (usually in early spring) and be prepared to apply each year since re-enrollment isn’t automatic if demand exceeds slots.
Indiana: Choice Scholarship Program (Voucher)
Indiana’s Choice Scholarship is a well-established voucher program that in 2023 was expanded to make it almost universally accessible. To be eligible, a student must reside in Indiana and meet a few criteria, but the key factor is income. Indiana now sets the income cutoff at 400% of the federal Free/Reduced Lunch level, which is about $230,880 annual income for a family of four as of 2024. In practice, the average voucher is around $6,000 per student per year. However, the maximum voucher for older students or higher-funded districts can be significantly more – for 2025 the state reported a maximum voucher value of about $8,100 per student. Families are allowed to add their own funds if a school’s tuition is higher than the voucher.
Texas: Education Savings Account (ESA)
The just passed bill in Texas, launching in late 2026, will allow families to use state funds to pay for private school tuition and other education-related expenses like tutoring or books. The program allocates funds, with the first priority given to students with disabilities and families below a certain income threshold. Students with disabilities can receive up to $30,000, while other eligible families receive around $10,000 per year, or 85% of the statewide average public school funding per student. Homeschooled students can receive $2,000 per year.
Other Notable Programs for K–12 Private Education
In addition to the states above, numerous other states have introduced or expanded programs that can help cover private or online schooling costs:
West Virginia’s Hope Scholarship (ESA): West Virginia offers an ESA of roughly $4,900 per student annually. It’s nearly universal (after a phase-in, essentially any child eligible for public school can apply). Families have used Hope Scholarship funds for private school tuition in state and even out-of-state online schools.
Iowa’s “Students First” ESA: Iowa launched an ESA program in 2023, phasing to universal eligibility by 2025. By the 2024–25 school year, all K–12 students in Iowa will be eligible regardless of income, with an ESA amount of about $7,600 per student. This money can be used for tuition at accredited online private schools – making Iowa another state where a family can effectively choose an online private education for a far reduced cost.
Arkansas, Ohio, and Others: Several states have recently expanded choice programs. Arkansas created a universal ESA (the ArFuture program) set to phase in, and states like Ohio and Oklahoma have raised income limits on their vouchers to levels that encompass most middle-class families. As of 2025, 13 states offer programs with universal or near-universal eligibility, and over 25 states total have some form of private school choice. It’s worth checking your state’s latest offerings even if you don’t live in one of the examples above.
Tax Credit Scholarships: States such as Pennsylvania, Virginia, and Georgia have tax-credit scholarship programs where donors fund K–12 private school scholarships. Many of these programs have relatively high income ceilings
Using Tax Credits and Deductions to Your Advantage
Apart from vouchers and ESAs, don’t overlook state tax benefits that can put money back in your pocket for education expenses. A number of states offer tax deductions or credits to families paying for private school or homeschooling:
Wisconsin Tuition Tax Deduction: Wisconsin allows parents to deduct up to $4,000 per K–8 student and $10,000 per high school student in private school tuition on their state income taxes.
Other States: Iowa (before its ESA, and still in 2024) provided a tax credit up to $2,000+ per child for tuition; South Carolina and Louisiana have deductions for online private school; and Indiana (in addition to the voucher program) allows a tax deduction of $1,000 per private-school child for educational expenses. These kinds of programs usually require you to keep receipts and then claim the benefit on your state tax return, but can collectively save families hundreds or thousands of dollars each year.
Tip: Be sure to research your state’s specific tax rules or ask a tax professional, as these credits/deductions often have particular guidelines (for example, eligible expenses, documentation needed, or income phase-outs).
Making Your Online Private School Choice a Reality
With the financial help available from vouchers, ESAs, and tax credits, a private online education can fit into the family budget much more easily. Here are a few steps to successfully leverage these programs:
Check Your State’s Options: Start by identifying what school choice programs exist in your state. Resources like EdChoice.org and your state’s Department of Education website are helpful for up-to-date information. Look for programs labeled “vouchers,” “education savings accounts,” “tax-credit scholarships,” or “education tax credits.”
Understand Eligibility and Deadlines: Once you know what programs you might use, read the eligibility rules carefully. Even if you think your income is too high, you may be pleasantly surprised (as we saw, some programs include nearly all families). Note any application windows – for example, some ESAs have a spring application period for the following fall. Missing a deadline could mean waiting another year, so put reminders on your calendar.
Apply and Obtain Approval: The application processes vary. Voucher programs might require you to first apply to a private school and then fill out a state form with proof of income. ESA programs often have an online portal to apply directly for the account funds. Tax-credit scholarship applications go through scholarship organizations. Provide any required documentation (proof of residency, income verification if needed, etc.) promptly to secure your spot. Once you’re approved for a voucher or ESA, you’ll typically receive an award letter or account login indicating the amount you’ve been granted for the year.
Enroll in the Online School: With confirmation of funding, you can proceed to enroll your child in the online private school. Constellation Learning Institute’s admissions team is familiar with these programs and can assist families in applying voucher/ESA funds to tuition. In many cases, the state or scholarship organization will pay the school directly each quarter or semester. For ESAs, you may receive reimbursements or use an online platform to pay the school’s invoices. During Constellation’s online private school enrollment process, be sure to indicate that you’ll be using state scholarship funds – our staff can help coordinate the billing so that the transition is smooth.
Enjoy the Benefits of Online Learning: Once everything is set up, your child can dive into Constellation’s accredited program. They’ll have access to a full range of courses, from core subjects to exciting electives and advanced placement. (Yes, you can even take AP classes online with us, using your state scholarship to cover the costs!) Your family will enjoy the flexibility of an online schedule and the personalized attention of our instructors, without the financial strain that usually comes with private education.
Maintain Eligibility: If you continue using the program each year, keep an eye on any renewal steps. Some vouchers auto-renew as long as you stay eligible and enrolled at the school; others (like ESAs) might require reapplication or periodic reports. Stay in good communication with both the funding program and the school. Constellation is happy to help provide any enrollment verifications or documentation you might need to satisfy program requirements.
By leveraging the school choice programs available, you can make a Constellation education affordable and accessible. Your student will benefit from a learning experience that meets high standards and prepares them for college and beyond, while you benefit from the financial relief these programs provide. Feel free to reach out to Constellation Learning Institute with any questions about using vouchers or ESA funds for an online private school education. With a bit of research and the support of these programs, you can truly design an educational experience that fits your family’s needs and aspirations. Here’s to making high-quality online education attainable for all!
