Minnesota Homeschool Funding Options (2026)

Minnesota takes a different approach to education support. While the state has no ESA or voucher program, it offers something most states don't: actual tax benefits specifically for educational expenses. Minnesota's education tax credit and deduction have existed since the 1990s and apply to homeschool families.

These aren't huge amounts—the credit maxes at $1,500, the deduction at $2,500 per child—but they're real benefits that help offset homeschool costs. Combined with federal options, Minnesota homeschoolers have more financial tools than families in many other non-ESA states.

What Funding Is Available for Minnesota Homeschoolers?

Minnesota doesn't have an ESA or voucher program, but it offers two legitimate tax benefits that help homeschool families:

K-12 Education Tax Credit (Income-Limited) - Up to $1,500 per family - Covers tuition, textbooks, academic tutoring, transportation to school activities - Income limits apply: phases out starting at $33,500 (single) / $37,500 (married) - Refundable credit (you can get money back even if you owe no tax)

K-12 Education Tax Deduction (No Income Limit) - Up to $1,625 per child grades K-6 - Up to $2,500 per child grades 7-12 - No income limits - Reduces taxable income (not a direct credit)

These benefits have existed since Minnesota became the first state to offer education tax deductions in 1955 and credits in 1997.

Qualifying Expenses for Minnesota Tax Benefits

Not everything qualifies for Minnesota's tax benefits. Eligible expenses include:

• Textbooks and workbooks — Required instructional materials
• Computer hardware and software — Educational use only
• Academic tutoring — Must be provided by qualified instructor
• Tuition for supplemental classes — Music lessons, art classes, etc.
• Paper, pens, and school supplies — Basic materials
• Transportation — To and from educational activities

What doesn't qualify: - General household supplies - Extracurricular activities unrelated to academics - Food and meals - Clothing (even uniforms) - Activities that are primarily recreational

Federal Options Stack on Top

Minnesota's state tax benefits work alongside federal options:

• Coverdell ESA — $2,000 per year per child. Tax-free growth and withdrawals for educational expenses. Can be used alongside Minnesota tax benefits.^[1]
• 529 Plan — Minnesota's plan offers state tax benefits for college savings. Limited K-12 use under federal law.

Example scenario: A Minnesota family with two homeschooled children (grades 4 and 9) who spends $4,000 on curriculum and educational materials could potentially claim: - $1,500 education tax credit (if income-eligible) - $4,125 in tax deductions ($1,625 + $2,500) - Plus use $4,000 from Coverdell ESAs tax-free

The total benefit varies by income and tax situation, but the options are more substantial than in most non-ESA states.

Minnesota Homeschool Funding at a Glance

Homeschool Requirements in Minnesota

Minnesota has moderate regulation for homeschoolers:

- Annual report — Submit to superintendent with student info and subjects - Required subjects — Reading, writing, math, science, history, government, health - Annual assessment — Standardized testing or alternative evaluation - Immunization records — Must maintain compliance

The assessment requirement is the most significant. You'll need to test annually or provide alternative evidence of progress.

Public School Access

Minnesota does not guarantee homeschool access to public school sports or activities. However:

- Some districts allow participation—policies vary - Part-time enrollment is sometimes possible for specific classes - Contact your local district to understand available options

If public school activities matter to your family, research your specific district's policies before assuming access.

The Bottom Line

Minnesota doesn't have an ESA, but it offers more tax support for homeschoolers than most states. The education tax credit and deduction provide real benefits—especially for income-eligible families who can claim the refundable credit.

Combined with federal Coverdell ESAs, Minnesota homeschoolers have meaningful financial tools. Track your educational expenses carefully throughout the year to maximize these benefits at tax time.

The state's moderate regulation requires some paperwork, but the compliance burden is manageable. Most families find Minnesota strikes a reasonable balance between oversight and freedom.