Understanding education savings account income limits
Get a clear look at how ESA income limits and other eligibility factors work across different states so you can make informed decisions for your child’s education.
Finding the right educational path for your child isn’t always a one-size-fits-all decision. Education Savings Accounts (ESAs) offer families a way to explore different learning options by using state-authorized funds for educational expenses like private school tuition, tutoring, online classes, and other approved services.
While ESA programs are growing in popularity, they’re not yet available in every state, and eligibility guidelines, especially income requirements, can vary quite a bit. At Outschool, we believe families deserve access to clear, trustworthy information when exploring new learning opportunities. This guide breaks down how ESA income limits work, what to expect across different states, and how you can find programs that support your family’s goals.
What are ESAs?
Education Savings Accounts, or ESAs, are programs that help families pay for a variety of learning options and education-related expenses if they withdraw their child from the local public school system. The idea is to give you and your family more flexibility and choice in finding what works best for your child’s education.
As of now, 17 states offer ESA programs, and some of these states provide more than one option to serve different student needs. You might also see ESAs referred to by different names depending on where you live, such as Empowerment Scholarship Accounts in Arizona or Education Freedom Accounts in New Hampshire.
Each program has its own rules for how the funds work. Some allow families to use the full amount of their child’s per-learner funding from the state, while others may offer a partial amount.
In either case, the funds are typically deposited into a secure account and can only be used for pre-approved educational expenses, which the state or program administrator outlines.
How ESA income limits work across different states
If you’re exploring an ESA program in your state, one of the first things to look at is who’s eligible to apply. Some programs are limited to students with special needs, while others are available to a broader group of learners.
Income is also an important factor. While some states open ESA access to all families, others prioritize lower-income households or set strict income limits. Depending on where you live, these limits may affect whether your family qualifies or how funding is prioritized among applicants.
Some states use a phased approach. A few ESA programs follow a tiered, multi-year rollout—gradually increasing income limits until access is open to most or all families. If your state uses this kind of system, you may become eligible in a future year even if you don't qualify right now.
Because every state handles ESA income limits differently, it's best to check your state’s most recent guidelines for current income thresholds and application rules.
Below are the income limits for ESA programs currently offered across participating states:
Alabama
ESA program: Creating Hope and Opportunity for Our Students’ Education
Income limit: Income is limited to 300% of the Federal Poverty Level (FPL) through 2026; there will be no income limit starting in 2027. Priority is given based on income.
Arizona
ESA program: Empowerment Scholarship Accounts
Income limit: None
Arkansas
ESA program: Arkansas Children’s Educational Freedom Account Program
Income limit: None.
Florida
ESA program: Family Empowerment Scholarship for Educational Options
Income limit: Universal eligibility. Priority is given to students from households at or below 185% of the FPL, with secondary priority for those between 185% and 400% of the FPL.
Florida
ESA program: Family Empowerment Scholarship for Students with Unique Abilities
Income limit: None.
Georgia
ESA program: The Georgia Promise Scholarship Act
Income limit: Income is limited to 400% of the FPL. Higher-income applicants may qualify if funding remains, with priority given to previous participants.
Indiana
ESA program: Education Scholarship Account Program
Income limit: Income is limited to 400% of the threshold for the Free and Reduced-Price Lunch (FRL) program.
Iowa
ESA program: Students First Education Savings Account
Income limit: Income is limited to 400% of the FPL for private school students in 2024–2025. Eligibility expands to near-universal access in 2025–2026.
Louisiana
ESA program: Giving All True Opportunity to Rise (LA GATOR) Scholarship Program
Income limit: Income is limited to 250% of the FPL in phase one, 400% of the FPL in phase two. Universal eligibility applies in phase three, with priority for students with exceptionalities and those under 250% FPL. The timeline for phases is not yet established.
Mississippi
ESA program: Equal Opportunity for Students with Special Needs Program
Income limit: None.
Montana
ESA program: Special Needs Equal Opportunity Education Savings Account Program
Income limit: None.
New Hampshire
ESA program: Education Freedom Account Program
Income limit: Income is limited to 350% of the FPL at the time of application. No income check required in subsequent years if the student remains eligible.
North Carolina
ESA program: Education Student Accounts (ESA+)
Income limit: None.
South Carolina
ESA program: Education Scholarship Trust Fund Program
Income limit: Income is limited to 200% of the FPL in 2024–2025, 300% of the FPL in 2025–2026, and 400% of the FPL from 2026–2027 onward. Enrollment caps apply through year three.
Tennessee
ESA program: Education Savings Account Program
Income limit: Income is limited to 200% of the federal income eligibility guidelines for the FRL program.
Tennessee
ESA program: Individualized Education Account Program
Income limit: None.
Tennessee
ESA program: Education Freedom Scholarship Act
Income limit: Universal eligibility beginning in 2025. The first 10,000 scholarships are prioritized for students from households earning below 300% of the FRL threshold, students eligible for other choice programs, and students with recognized disabilities.
Utah
ESA program: Utah Fits All Scholarship Program
Income limit: Universal eligibility. If demand exceeds funding, priority is given to returning students, families earning at or below 200% FPL, siblings of current ESA recipients, and then families between 200% and 555% of FPL.
West Virginia
ESA program: Hope Scholarship Program
Income limit: None.
Wyoming
ESA program: Wyoming Education Savings Account Program
Income limit: Income is limited to 150% of the FPL.
Ways to use ESA funds for your child’s education
ESA funds are often managed through a state-approved platform, but how you use those funds depends on your program’s specific rules. In most cases, there are three main ways parents can access and spend their ESA dollars:
Buy through an approved online marketplace like ClassWallet, where you'll find pre-approved vendors for things like curriculum, classes, and supplies.
Request direct payments to approved education providers, such as private schools or tutors, so the money never passes through your personal account.
Pay upfront and request reimbursement, typically by submitting receipts and following your program’s documentation rules.
Some states also allow you to request approval for new vendors or services not already on the list. While it’s great to have options, starting with pre-vetted choices can make the process much smoother.
Outschool works to meet ESA requirements in states where it's an approved provider, making it easier for families in those areas to find eligible classes without extra legwork. Currently, Outschool accepts ESA funds from select states, including Arizona, North Carolina, South Carolina, Utah, Texas, New Hampshire, and Indiana.
Factors that affect ESA eligibility beyond income
While income limits can play a big role in determining ESA eligibility, they aren’t the only factor you should consider. Many state programs include additional requirements that focus on a child’s educational needs, family circumstances, or school assignment.
Here are some common eligibility factors that may apply beyond income:
Disability status or IEP qualification: Many programs reserve ESA access for students with an Individualized Education Plan (IEP) or specific medical or educational diagnoses.
School assignment or performance zone: Some ESAs give priority to students who are zoned for low-performing or under-resourced public schools.
Military or foster care status: Children from active-duty military families, foster care, or out-of-home placements often qualify for priority or automatic eligibility in certain states.
Public school enrollment history: Some states require that a child attended a public school for a set period before becoming eligible for an ESA, though others may waive this for incoming kindergarteners.
Sibling participation: In certain programs, having a sibling who already uses an ESA can help qualify or prioritize a student for participation.
Checking your state’s specific ESA guidelines will give you the clearest picture of which of these factors apply. Even if income isn’t a barrier, these eligibility details can make a big difference in how and when your family can access ESA funding.
Common questions about ESA income limits
Navigating ESA programs may feel a little overwhelming, especially since rules and requirements vary from state to state. We’ve put together some common questions you may come across to make this process easier for you.
How can I check my state’s ESA income requirements?
The best way to confirm your state’s income guidelines is by visiting your state’s Department of Education or the official ESA program website. Many programs also share clear charts or application guides that list current income thresholds. If you're unsure, reaching out directly to program administrators can help you understand how income eligibility is calculated and what documentation you may need.
Do all ESA programs have income limits?
No—some ESA programs, like the ones offered by Arizona, have no income restrictions at all, while others prioritize or limit participation based on household earnings. A few states also phase out income limits over time, expanding access to more families as the program grows. Checking your specific state’s guidelines is key to knowing where your family stands.
If I qualify for one year, will I need to reapply or prove income again?
This depends on your state’s program. Some ESAs require families to reapply annually and verify income each year, while others only require income eligibility at the time of first application. Many programs prioritize returning students, even if reapplication is needed.
What types of learning expenses can ESA funds cover?
ESA funds can typically be used for a variety of approved educational expenses, including private school tuition, tutoring, curriculum materials, online classes, and therapies. Some learning platforms, like Outschool, meet ESA program requirements in advance, making it easier for families to use their funds on eligible classes without extra paperwork.
Can I use ESA funds for Outschool classes?
Yes—Outschool accepts ESA funds through ClassWallet for several state programs. Currently, families using ESAs and microgrants in Arizona, North Carolina, South Carolina, Texas, Indiana, and New Hampshire can use their funds toward Outschool classes. If your state isn’t on the list yet, you can join Outschool’s waitlist to be notified when approval becomes available for your state’s ESA or microgrant program.
Your next step toward flexible learning
Education Savings Accounts can open the door to a wide range of learning opportunities, but understanding the rules around income limits and eligibility is crucial to knowing if these programs are the right fit for your family.
Outschool makes it easier to bring those choices to life with flexible, engaging learning options. From live online classes to enrichment programs that align with ESA guidelines, we’re here to help you navigate your child’s education with confidence.
