Private School vs. Homeschool Use of State Scholarship Funds: How Amounts, Rules and Paperwork Differ
How state education funding treats private school and homeschool students differently: award amounts side by side for Texas, Utah, Alabama, Oklahoma, Florida, Iowa, South Carolina, Arkansas and Tennessee, what each setting can buy, legal status questions, records and how to decide which path fits your family. Last verified October 2026.
Quick answer: most state education funding programs treat private school and homeschool students differently. Many vouchers and some ESAs cover private school only, such as Iowa’s Students First ESA and Indiana’s Choice Scholarship. Programs that include homeschoolers often pay them less: for 2026-27, Texas Education Freedom Accounts pay $10,474 for private school versus $2,000 for homeschool, Utah Fits All pays up to $8,000 versus $4,000 or $6,000 by age, and Alabama’s CHOOSE Act pays $7,000 versus $2,000 per homeschool student. Some states, such as Arkansas, fund both settings through the same account. In several states, using program money at home places your child under the program’s agreement and rules rather than ordinary homeschool law, so read the parent contract before you choose.
When families compare state education funding, the first question is often whether a program can be used for homeschooling at all. The second question, which matters just as much, is how much it pays and what strings come with it in each setting.
This guide compares how programs treat private school and homeschool students in several states, explains the legal and paperwork differences and offers a way to decide. It builds on our guide to state education funding programs for parents.
Sources: figures and rules are drawn from the official program sources reviewed for our individual state guides, including the Texas Comptroller of Public Accounts (TEFA), Utah Education Fits All and the Utah Code, the Alabama Department of Revenue (CHOOSE Act), the Oklahoma Tax Commission, Step Up For Students and EdChoice (Florida), the Iowa Department of Education, the South Carolina Education Scholarship Trust Fund, the Arkansas Department of Education (DESE) and the Tennessee Department of Education. Amounts change every year. This is general information, not legal advice. Last verified October 2026.
Side-by-Side: Private School vs. Homeschool Amounts
| State and program | Private school | Homeschool |
|---|---|---|
| Texas Education Freedom Accounts | $10,474 (up to $30,000 for an eligible student with a disability) | $2,000 |
| Utah Fits All Scholarship | Up to $8,000 | $4,000 ages 5 to 11; $6,000 ages 12 to 18 |
| Alabama CHOOSE Act | $7,000 | $2,000 per student, capped at $4,000 per family |
| Oklahoma tax credits | $5,000 to $7,500 refundable credit, based on income | Up to $1,000 refundable credit per student |
| Arkansas Education Freedom Account | $7,208 (non-Succeed) | Same account; homeschool expenses allowed |
| Iowa | Students First ESA, $8,148 full year | Not eligible for ESA; up to $500 Tuition and Textbook Credit |
| South Carolina ESTF | $7,634 | Not for Option 1, 2 or 3 homeschool associations; home education under the ESTF agreement allowed |
| Tennessee | Education Freedom Scholarship, $7,530 | Not for EFS; IEA allows homeschooling for eligible students with disabilities |
All amounts are for 2026-27 as reported by each program and may change. Confirm with the administrator before you plan.
State Snapshots
Texas
Texas Education Freedom Accounts, created by Senate Bill 2 in 2025 with $1 billion in funding and run by the Texas Comptroller of Public Accounts, show the widest gap. For 2026-27, awarded students receive $10,474 for an accredited participating private school, up to $30,000 for a private school student with a disability and an IEP on file, and $2,000 for homeschool and other nonpublic settings. The first application window ran February 4 to March 31, 2026, and families can join an interest list for 2027-28. A homeschool family weighing the program should compare the $2,000 amount with its curriculum and class costs and the record requirements that come with it.
Utah
The Utah Fits All Scholarship is open to any Utah K-12 student, with awards made by lottery and priority for renewing students, siblings and families at or below 300 percent of the federal poverty level. For 2026-27, home-based students receive $4,000 at ages 5 to 11 and $6,000 at ages 12 to 18, while private school students can receive up to $8,000. Applications for new students open April 1 and close May 1.
Alabama
Alabama’s CHOOSE Act funds accounts through refundable tax credits administered by the Department of Revenue with ClassWallet. For 2026-27, awards are $7,000 for a student at a participating school and $2,000 for a home education student, capped at $4,000 per homeschool family. New families for 2026-27 needed income at or below 300 percent of the federal poverty level, and the program opens to all Alabama K-12 families starting with 2027-28.
Oklahoma
Oklahoma uses two separate refundable tax credits. Private school families can receive $5,000 to $7,500 per student, depending on income, after applying. Homeschool families can claim up to $1,000 per student for qualified expenses on their Oklahoma tax return without a separate application.
Iowa
Iowa’s Students First ESA is open to every Iowa resident K-12 student who enrolls full time in an accredited nonpublic school, with no income limit, and pays $8,148 for a full year in 2026-27. Homeschooled students cannot use it, but Iowa families, including homeschoolers, may claim the state Tuition and Textbook Credit of up to $500 per child.
Arkansas
Arkansas’s Education Freedom Account covers both settings through one account. DESE describes approved expenses including private school tuition, homeschool curriculum, tutoring and educational therapies, and lists 2026-27 funding of $7,208 for non-Succeed students and $8,011 for Succeed students. Families apply or renew every year.
Why Homeschool Amounts Are Often Lower
States set lower homeschool amounts for a few common reasons. Private school tuition is usually the largest cost, while homeschool expenses tend to be curriculum, materials and outside classes. Legislators have also tied private school funding to a share of per-pupil public funding while setting homeschool amounts as a flat figure. Lower amounts let a fixed appropriation serve more students.
For families, the practical result is that homeschool funding usually covers curriculum and some enrichment, not the full cost of a parent staying home to teach.
What Each Setting Can Buy
Private school students
Funds typically go to tuition and required fees first. In ESA states, leftover funds may cover uniforms, textbooks, tutoring, testing and therapies. In voucher states, money usually goes directly to the school and cannot be used elsewhere.
Homeschool students
Where homeschooling is allowed, common approved expenses include:
- Curriculum and textbooks.
- Online courses and classes from approved providers.
- Tutoring, often by credentialed or approved tutors.
- Standardized tests and exams.
- Educational therapies for eligible students.
- Technology, sometimes with a cap or a professional’s letter.
- Field trips, museum memberships or lessons in some programs.
Programs differ in whether materials like general school supplies, music lessons or co-op fees count. Our overview of what education savings account funds can pay for breaks down common rules.
What neither usually covers
Parent salaries, payment to a family member for teaching, ordinary household items and food are generally excluded. Idaho’s Parental Choice Tax Credit, for example, specifically bars claiming tuition for instruction a parent provides to their own child.
The Legal Status Question
In several states, taking program money for education at home is not the same as homeschooling under state homeschool law.
- South Carolina: students enrolled in Option 1, 2 or 3 homeschool associations cannot participate in the ESTF, but families who educate at home under the ESTF agreement itself can use funds for curriculum, tutoring, technology and therapies.
- Florida: the PEP scholarship serves students who are not enrolled full time in a public or private school. Families should read the Step Up For Students PEP handbook on how PEP students relate to Florida’s home education program.
- Mississippi: families using the special needs ESA must agree not to file a home instruction certificate of enrollment, and home instruction programs are not eligible schools.
The parent agreement you sign often sets requirements such as subjects to teach, testing, records and spending reports. Those can be stricter than the state’s homeschool law. Our guide to homeschool laws by state explains the baseline rules you would follow without the program.
Some homeschool families decline funding
Some families choose not to take program money so they can keep the flexibility of ordinary homeschool law. Others take it for the help with costs. Both are reasonable choices, and the right one depends on the amount, the rules and your goals.
Paperwork and Accountability Compared
| Requirement | Private school route | Homeschool route |
|---|---|---|
| Enrollment proof | Acceptance or enrollment letter from the school | Program agreement or registration, depending on state |
| Spending | School usually bills the account directly | Parent submits purchases or receipts for approval |
| Testing | School administers state or national tests where required | Parent arranges tests if the program requires them |
| Records | Kept by the school | Kept by the parent |
| Audits | School and parent may be reviewed | Parent purchases reviewed more often |
Homeschool families using funds should keep receipts, lesson records and test results organized from day one. Our article on homeschool records, portfolios and report cards covers good record habits.
Hybrid and Part-Time Options
Not every family fits neatly into one setting. Some programs fund:
- Part-time private school, such as North Carolina’s ESA+ amounts that differ for part-time and full-time enrollment.
- Microschools and learning pods, included as nonpublic schools in Idaho’s tax credit when instruction meets the statute’s rules.
- Online schools, depending on whether the provider is accredited or approved.
If you plan a hybrid arrangement, ask the administrator how the student will be classified, because that can change the amount and which expenses count.
How to Decide Which Path Fits
Start with your child, not the money
List what your child needs academically, socially and emotionally, and which setting is more likely to meet those needs. The funding should support that choice, not drive it.
Compare the real costs
For private school, compare tuition and fees with the award; the gap is your cost. For homeschooling, estimate curriculum, classes, tutoring, testing and materials, and remember the indirect cost of a parent’s time and income.
Read the rules for each setting
Check approved expenses, record and testing requirements and how funds are paid. Ask whether funds roll over to the next year.
Consider switching
Ask whether you can move between settings during the year or at renewal, and what happens to the award if you do. Some programs prorate or limit mid-year switches.
Check deadlines
Private school and homeschool applications sometimes have different windows or priority rules. Our guide on how to apply for an education savings account lays out the steps.
Frequently Asked Questions
Do homeschoolers get the same amount as private school students?
Usually not. Texas, Utah and Alabama all pay homeschool students less than private school students for 2026-27, while a few programs, such as Arkansas’s Education Freedom Account, use the same account for both.
Which states let homeschoolers use education funds?
Examples include Arizona, Arkansas, Texas, Utah, Alabama and Florida’s PEP, along with Oklahoma’s homeschool tax credit and some disability programs such as Tennessee’s IEA. Rules differ widely.
Can I use an ESA for homeschool and still be a legal homeschooler?
It depends on the state. In some states, program participants operate under the program agreement instead of ordinary homeschool law. Read the parent agreement and your state’s homeschool rules.
Can I pay myself to teach with ESA funds?
Generally no. Programs typically exclude payments to parents or family members for instruction.
Is a private school voucher usable for homeschooling?
Usually not. Vouchers typically pay tuition at participating private schools only.
A Worked Budget Comparison
Numbers make the trade-off easier to see. Take a hypothetical Texas family with one middle school child who has been awarded a TEFA account. The figures below use the program amounts above and placeholder costs that you would replace with your own quotes.
- Private school route: the account provides $10,474. If the school’s tuition and fees total more than that, the family pays the difference, plus anything the account does not cover, such as transportation.
- Homeschool route: the account provides $2,000. The family lists curriculum, an online math course, a co-op class fee, standardized testing and books, then checks which items the program approves. Anything above $2,000 or outside the approved list is paid out of pocket.
Either way, write out your own figures before choosing. Families are often surprised that the larger private school award still leaves a gap, or that a modest homeschool award covers most of a year’s materials.
The Bottom Line
State funding treats private school and homeschool students differently in eligibility, amount, approved expenses and paperwork. Compare the real cost of each setting with the award, read the parent agreement carefully, especially if it changes your legal homeschool status, and confirm every detail with the program administrator before you commit.
