Individual Tax Credit/Deduction

Education Deduction

Minnesota provides a tax deduction covering educational expenses for Minnesota students in any public, private, or home school, including schools located in North Dakota, South Dakota, Iowa, or Wisconsin. Eligible expenses reduce a family’s taxable income when taxes are filed.

We do not administer this program.

  • Enacted:
    1955
  • Launched:
    1955
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Program Stats

  • 1983

    Declared Constitutional by the U.S. Supreme Court

  • 123,633

    Participating Taxpayers (2024)

  • 100%

    of Taxpaying Families with Children Eligible Statewide

  • $1,427

    Average Tax Deduction (2023)

  • 9%

    Average Deduction as a Percentage of Public School Per-student Spending

Student Eligibility

Any parent or guardian who spends money on approved educational expenses for a child, including tuition and fees, is eligible to receive the deduction. Also, parents must be Minnesota tax filers and have proof of eligible expenses.

(Last updated July 3, 2024)

Use of Funds

Qualifying expenses include tuition and fees, tutoring, textbooks, computer hardware, transportation, and after-school programs.

(Last updated July 3, 2024)

Funding Amount & Source

The tax deduction is worth 100% of the amount spent on education, up to $1,625 per child in grades K–6 and $2,500 per child in grades 7–12. The tax deduction lowers a family’s taxable income.

(Last updated July 3, 2024)

Program Guidelines

  • Income Limit: None
  • Prior Year Public School Requirement: None
  • Geographic Limit: Statewide
  • Enrollment Cap: None
  • Individual Deduction Cap: $1,625 (K–6) / $2,500 (7–12)
  • Testing Mandates: None

Parent Requirements:

  • Must ensure students attend a school located in Minnesota, Iowa, North Dakota, South Dakota or Wisconsin
  • May not include self-transportation of students as an expense, but may include monies paid to others for transporting students to school

(Last updated December 18, 2023) 

Governing Statutes

Minn. Stat. § 290.0132, subd. 4

(Last updated December 18, 2023) 

Legal History

On June 29, 1983, the U.S. Supreme Court ruled in favor of Minnesota’s tax deduction for education program, a landmark decision. “Where, as here, aid to parochial schools is available only as a result of decisions of individual parents, no ‘imprimatur of state approval,’ can be deemed to have been conferred on any particular religion, or on religion generally.” Mueller v. Allen, 463 U.S. 388, 103 S. Ct. 3062, 77 L. Ed. 2d 721, 1983 U.S. 96.   

(Last updated December 6, 2023)