Housing Allowance Calculator
Estimate your pastoral housing allowance by adding up your eligible housing expenses. The housing allowance can be excluded from federal income tax for qualified ministers.
Disclaimer: This calculator is for estimation purposes only and is not financial or tax advice. Consult a qualified tax professional or the IRS to confirm your housing allowance.
Monthly Expenses
Enter your recurring monthly housing costs.
Annual (One-Time) Expenses
Enter yearly or one-time housing costs.
Summary
Monthly Total
$0.00
Annual One-Time
$0.00
Estimated Yearly Allowance
$0.00
Understanding the Pastoral Housing Allowance
The housing allowance (also called the parsonage allowance) is a tax benefit available to ordained ministers. It allows a portion of a minister's compensation to be designated as a housing allowance, which is excluded from federal income tax.
What Qualifies as Housing Expenses?
- Rent or mortgage payments (including down payment)
- Utilities (electric, gas, water, trash, sewer)
- Furnishings and appliances
- Insurance (homeowner's or renter's)
- Property taxes
- Repairs, maintenance, and improvements
- Landscaping and yard care
- Internet, cable, and phone service
Key Rules to Know
The housing allowance cannot exceed the lesser of: (1) the amount designated by your church, (2) your actual housing expenses, or (3) the fair market rental value of your home (furnished, plus utilities). Any amount exceeding these limits is taxable income.
For more guidance on pastoral compensation, check out our Church Salary Calculator and giving and finance resources.