In Arizona, residents have a special opportunity to make a meaningful impact in their community, all while reducing their state tax liability. Through the Arizona Charitable Tax Credit, donors can give where they live this holiday season by contributing to qualifying nonprofits and support vital services for those in need — without any additional out-of-pocket cost.
With increasing costs and rising health care expenses, the Arizona Charitable Tax Credit has become a powerful way to give back, without costing you a penny!
What is the Arizona Charitable Tax Credit?
The Arizona Charitable Tax Credit is a state program designed to encourage residents to support community-focused nonprofit organizations that provide essential services to those in need. When you donate to a qualifying charity, like Phoenix Children’s, you can receive a dollar-for-dollar credit on your Arizona state taxes.
Dollar-for-dollar credit means for every dollar you donate up to the credit limit you receive the same value deducted from your state tax bill.
Donation limits and benefits
For the 2024 tax year, individual filers can donate up to $470, and couples filing jointly can donate up to $938 for the Arizona Charitable Tax Credit, which provides a dollar-for-dollar credit against state taxes. Donations made by April 15, 2025, can still count for 2024.
To qualify for a federal deduction, mailed gifts must be postmarked by Dec. 31, and credit card gifts must appear on your statement by then.
A no-cost way to make a difference
One of the most compelling aspects of the Arizona Charitable Tax Credit is that it provides a “no-cost” way for residents to make a significant difference in the lives of others. If you’re already required to pay state income taxes, this credit allows you to direct a portion of your tax payment to nonprofit organizations that make a community a great place to live.
Rather than paying that portion to the state, you can ensure it goes directly toward helping children receive the care they need, feeding a hungry family or supporting our animal citizens — the choice of impact is yours!
The Arizona Charitable Tax Credit is an incredible tool for anyone who wants to give back to their community without an additional financial burden. It’s an opportunity to support vital services for children, families and communities in need while reducing your state taxes.
Take action today
This tax season, redirect your state tax payment to a cause that matters to you. Your contribution can support life-saving treatments. It’s a win-win for you and for those who depend on these vital services.
*This information is not intended as tax, legal or financial advice. Gift results may vary. Consult your personal financial adviser for information specific to your situation.
Editor’s note: Nicola Lawrence is associate vice president of philanthropic advising at Phoenix Children’s Foundation. Reader reactions, pro or con, are welcomed at AzOpinions@iniusa.org.
