Updated Eligibility Income Limits for Scholarship Recipients for the New Federal Tax Credit for Scholarships
More than half of the states so far have elected to participate in the Federal Tax Credit for Scholarships. In order to be able to receive a scholarship (starting in 2027), a student must be eligible to attend a public elementary or secondary school and live in a household with income no more than three hundred percent of the Area Gross Median Income (AGMI), which is calculated by the federal government. To give people a picture of what the income limits might be, I made an interactive map last summer. But those numbers were used mostly for purpose of illustration, as we were awaiting updated numbers for AGMI that would be used when the FTCS goes into effect next year.
Well do I have good news for you!
After a monthlong delay, the U.S. Department of Housing and Urban Development’s (HUD) Office of Policy Development and Research (PD&R), which is responsible for updating AGMI, released the fiscal year 2026 income limits data that includes median income by area. See the updated AGMI map at the bottom of this post and explore the interactive version.
Eligibility income limits will vary according to the average wealth of the community where you live. Obviously, there will be large disparities. For example, 300% of the AGMI in Oglala Lakota County, South Dakota is $107,100; in Starr County, Texas the income limit is $116,100, and Wolfe County, Kentucky has an income limit of $117,000. On the other side of this story, Santa Clara, California has an income limit of $616,500 and three California counties have an income limit of $602,400: Marin, San Francisco, and San Mateo. The highest income limit outside of California is Los Alamos County, New Mexico ($547,500).
Those outliers showcase extremely large income disparities, yet the percentage of students who will be eligible in those communities is similar. For example, over 90% of people in Starr, Texas earn under $100,000 and may be eligible for FTCS scholarships. In Santa Clara California, the mean income of 95% of people is under $567,000 meaning that a very small percentage of students will face income-based limits to participation.
The vast majority of students in America will be income-eligible for a scholarship.
CAVEAT
Portions of counties in four New England states have different income limits than is showcased on the interactive map. If you are looking up income limits in the following areas, please reference the HUD data directly for the varying income limits for these areas:
- Maine: Bangor, Portland, York-Kittery-South Berwick
- Massachusetts: Pittsfield, Bristol County, Essex County, Middlesex County, Norfolk County, Plymouth County, Worchester County
- New Hampshire: Hillsborough County, Rockingham County
- Rhode Island: Newport County, Washington County
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