Arizona Charitable Tax Credit Guide 2025
Make a difference and get every dollar back on your taxes.
Disclaimer: This guide is only intended to be strictly informational and is not intended to provide, and should not be relied on for tax, legal, or accounting purposes. Individuals should seek consultation from a tax professional before utilizing any information present within this guide or elsewhere on A New Leaf’s website.
Resource Length: 10 mins | Published 2025
Download your guide now:
A Letter From the Expert
Dear Reader,
The Arizona Charitable Tax Credit is one of the most meaningful opportunities we have as Arizonans to make an immediate, local impact. Every year, thousands of families face difficult challenges: homelessness, domestic violence, financial crisis, and more. Through this program, you have the chance to compassionately them in a very real way, while also receiving a direct benefit on your state taxes.
The Arizona Charitable Tax Credit allows you to make a donation to an eligible nonprofit, such as A New Leaf, and receive a dollar-for-dollar credit on your Arizona state taxes. For 2025, individuals can give up to $495, and couples filing jointly can give up to $987, and every dollar is credited back on your tax return. That means you can support families in need without it costing you a penny in the end. It is one of the most accessible and impactful ways to give.
This guide was created to walk you through how the credit works and how you can make the most of it. You will find answers to common questions, clear steps to follow, and stories that highlight the difference your gift makes in the lives of real people in our community. Our goal is to take the guesswork out of the process so you can feel confident about using this incredible resource.
When you choose to use the Arizona Charitable Tax Credit, you are choosing to care for your neighbors. You are making it possible for children to have safe shelter, for families to rebuild after crisis, and for individuals to find hope and stability again.
Thank you for taking the time to learn more about this powerful opportunity. I invite you to explore this report, consider the impact you can have, and join us in creating a stronger, safer, and more compassionate Arizona.
Thank you for reading,
Laura Bode
Chief Philanthropy Officer
A New Leaf
Understanding the Arizona Charitable Tax Credit
While the information contained here is helpful, please consult with a tax professional before acting on any information contained in this document.
The basics of make a tax credit donation:
If you want to claim a donation towards the Arizona Charitable Tax Credit, the donation must be made by an individual (not a business or other entity). Your donation must be a financial donation (cash), as an in-kind donation (items) of any kind doesn’t qualify for the tax credit. Remember, only a cash, financial gift counts! Donations must be made to a Qualified Charitable Organization (QCO) certified by the State of Arizona and the organization must have an identifiable Qualified Charitable Organization code.
Four simple steps to make a tax credit donation:
Making a generous donation through the Arizona Charitable Tax Credit is very easy, just follow these simple steps to make your gift:
- Make a gift to a Qualified Charitable Organization (QCO), like A New Leaf.
- Keep a receipt of your gift to the charity. This will be a form of documentation that must be provided later to claim your tax credit.
- Complete the appropriate tax form to claim your tax credit for your gift(s): Arizona Form 321 for gifts to a Qualified Charitable Organization, like A New Leaf.
- Get all of your money back from the State of Arizona! Simple!
Yes, it really is that simple:
If you owed $1,000 in taxes and made a gift of $300 to a qualifying charitable organization, your tax liability will be reduced to $700. If those taxes have already been paid, the State of Arizona will issue a refund to you. Claiming your AZ tax credit is simple and easy. Make an incredible impact with a gift through this program.
Tax credits keep your money local:
The Arizona Charitable Tax Credit empowers you to decide on how your tax dollars are used. By making a donation to a charitable organization of your choice, you have the opportunity to support a cause you deeply care about and make a positive impact in your local community.
What makes the AZ Charitable Tax Credit truly remarkable is that you can channel your tax dollars to the charities you believe in, without incurring any actual cost to yourself. You can help your neighbors facing homelessness, domestic violence, poverty, or another challenge – all through the AZ Charitable Tax Credit!
Maximizing Your Arizona Charitable Tax Credit
Make the most of your tax credit donation so that your can support a charity that is close to your heart, while also saving the most on your taxes.
Current maximum tax credit amounts:
The maximum allowable tax credit for contributions to Qualified Charitable Organizations for single taxpayers, married filing separately, or heads of households for the 2025 tax year is $495. The maximum allowable tax credit for contributions to Qualified Charitable Organizations for married or joint filing taxpayers for the 2025 tax year is $987.
However, there is no minimum dollar threshold – a taxpayer can make a gift of any size, up to the maximums described above. A taxpayer can make a $10 donation, submit their Arizona Form 321, and receive a tax credit in the amount of $10 from the state of Arizona.
How tax credits apply to your state tax liability:
Do note, however, that the Arizona Charitable Tax Credit can only be applied up to your current Arizona state tax liability. The total amount of available credit that a taxpayer may use for the taxable year cannot be greater than the tax liability owed toward the state of Arizona.
As an example, imagine you donated $987 as a household to A New Leaf; but then, you realize you only have a tax liability of $300. You will receive $300 back from the state of Arizona, but not more than that since your liability was below the gift made. If you find yourself in this situation, you can carry forward the difference for up to 5 consecutive years! This ensures that even if your liability is lower than a gift, you can still claim that gift in a future tax year against your liability.
Please note that the Arizona Department of Revenue may update the amount of this tax credit periodically. Please check the ADOR website before making a donation to know the current amount.
Key Deadlines for the
AZ Charitable Tax Credit
While the information contained here is helpful, please consult with a tax professional before acting on any information contained in this document.
Arizona tax deadline information:
An important fact to understand about the AZ Charitable Tax Credit is that you can make a gift and claim it on your state taxes through the end of the tax season of the current year for the prior tax year. For example, you can make a gift in March of 2026, and still be able to claim it on your 2025 taxes. You do not need to make your Charitable Tax Credit gift prior to December 31 to claim a state tax credit on your taxes for that year.
Do note that you are required to list donations from different calendar years separately on Arizona Form 321. When filing your taxes, Charitable Tax Credit gifts made between January 1 and December 31 are required to be listed on Part 1, section A of Arizona Form 321. Charitable Tax Credit gifts made between January 1 and the tax deadline of the current year, but intended to be used for your previous year taxes, must be listed on Part 1, section B of Arizona Form 321.
Federal tax deductions have a different schedule:
All taxpayers should be aware that the IRS operates on a different schedule than the state of Arizona. For an AZ Charitable Tax Credit gift to be claimed as a federal tax deduction, you must make your gift prior to December 31st of the tax year you wish to claim it in.
You should keep this in mind when making your charitable gifts to maximize your tax benefits, however, it is advised that you consult a tax professional to best organize your charitable giving. Federal tax rules change often and these specific details may have changed since this document was published.
Key Contacts and Documents for
the AZ Charitable Tax Credit
Have questions about your charitable tax credit donation, how to claim it, or some other issue? Call the Arizona Department of Revenue for assistance using the details below.
Form 321 contacts:
Arizona Form 321 is the official state tax form used to claim the Arizona Charitable Tax Credit. Taxpayers complete this form when filing their state return to report contributions made to qualifying charitable organizations. Arizona Form 321 provides two contact phone numbers for taxpayers making contributions to qualifying charitable organizations.
Phoenix area, call: 602-255-3381
Area codes 520 and 928, call: 800-352-4090
Arizona Department of Revenue:
The Arizona Department of Revenue (ADOR) oversees the Charitable Tax Credit program, ensuring that contributions are properly reported and credited on state tax returns. ADOR maintains the list of qualifying charitable organizations, provides guidance to taxpayers, and processes Form 321 to verify and apply the credit.
The Arizona Department Of Revenue provides a customer care line and general contact line at 602-255-3381. You can also visit the Arizona Department of Revenue’s website here: https://azdor.gov/
Important Details on the Program
While the information contained here is helpful, please consult with a tax professional before acting on any information contained in this document.
Understanding Tax Credits vs Tax Deductions:
Important to understand is the simple difference between a tax credit and a tax deduction. The Arizona Charitable Tax Credit is a tax credit, and this brings more direct benefits compared to a deduction:
- Tax credits directly reduce the amount of taxes you owe, giving you a dollar-for-dollar reduction of your tax liability. A tax credit donation of $987, for instance, lowers your tax bill by a corresponding $987.
- Tax deductions, however, reduce how much of your income is subject to taxes. Deductions lower your taxable income by the percentage of your highest federal income tax bracket. So if you fall into the 22% tax bracket, an $987 deduction only saves you $217.
How an Organization Qualifies for the Arizona Charitable Tax Credit program:
In order to qualify for the Arizona Charitable Tax Credit program and be designated as a Qualified Charitable Organization, an organization must: “provide immediate basic needs to residents of Arizona who receive Temporary Assistance for Needy Families (TANF) benefits, are low income residents of Arizona, or are children who have a chronic illness or physical disability.” This designation is determined by the Arizona Department of Revenue, although criteria may change.
Every year, the Arizona Department of Revenue updates a list of Qualifying Charitable Organizations meeting the department’s requirements. Taxpayers should always check this list each year to ensure their donation is going to a qualifying charitable organization. An organization should always have and provide a qualifying charitable organization code.
Other Details and Distinctions
A few additional reminders about the Arizona Charitable Tax Credit, so that you have all the information you need.
Required charitable gift documentation:
To claim a tax credit charitable contribution, the State of Arizona and the IRS require proper documentation of the gift. Qualifying Charitable Organizations should provide donation receipts and a QCO code for use in substantiating state tax credits and deductions.
Deductions and the value of goods and services:
The Arizona Department of Revenue (ADOR) oversees the Charitable Tax Credit program, ensuring that contributions are properly reported and credited on state tax returns. ADOR maintains the list of qualifying charitable organizations, provides guidance to taxpayers, and processes Form 321 to verify and apply the credit.
The Arizona Department Of Revenue provides a customer care line and general contact line at 602-255-3381. You can also visit the Arizona Department of Revenue’s website here: https://azdor.gov/
State and federal carryover periods:
The State of Arizona and the IRS allow for a five consecutive year carryover period when claiming itemized deductions for charitable contributions. As such, this 5-year carryforward period applies to the Arizona Charitable Tax Credit.
Payroll withholding and tax credits:
Arizona and the IRS both allow for payroll withholding as a method of making charitable contributions. To provide documentation, you should provide proof of your pledge, and appropriate documentation from your employer proving payment.
Make a Tax Credit Donation Today!
If you are deciding on a Qualified Charitable Organization to give your Arizona Charitable Tax Credit to, consider helping your community through A New Leaf.
With a wide diversity of programs helping women, children, veterans, families, and men, A New Leaf can help you direct your charitable tax credit to the cause you care most about.
Want to download your own report?
Turn your taxes into life-changing support for your community. Make your Tax Credit gift now by clicking here. For more information, download the full PDF below:
Related Resources
What is Domestic Violence?
Who Experiences Domestic Violence?
Learn who experiences domestic violence, how it affects all ages and backgrounds, and why awareness is key to supporting survivors.
How to Help a Survivor of Domestic Violence
Learn how to help a survivor of domestic violence with safe, practical tips. Discover ways to help promote safety, healing, and independence.
The State of Homelessness in the Valley
Learn about the state of homelessness in the Valley. Discover key facts, causes, and community responses to address housing and support needs.
How To Help Homeless Neighbors
Learn practical ways how to help homeless neighbors through kindness, advocacy, community support, volunteering, and donations.
What is Foster Care?
Learn what foster care is, how it works, and why it matters. This guide helps you understand the process, the purpose, and the impact it has.
