Free housing allowance calculator

Housing Allowance Calculator

Enter your housing expenses, your church's designated allowance, and your home's fair rental value. See the IRS "lesser of" limit in seconds.

Your housing expenses

List what you spent to provide or rent your home this year. A tax professional can confirm which costs count.

Monthly costs

Yearly or one-time costs

Actual expenses for the year $0

($0 a month × 12) + $0 yearly

Housing allowance your church designated for the year

The yearly amount your church officially set in advance, in board minutes, a budget, or your employment agreement.

Fair rental value of your home, furnished, plus utilities

What your home would rent for, furnished, plus a year of utilities.

How the rule works

The lowest of three numbers sets your limit.

For income tax, IRS Publication 517 says an ordained, commissioned, or licensed minister may be able to exclude a housing allowance from income. The exclusion can't be more than the least of these three amounts:

The amount officially designated in advance

Your church has to set a definite amount before it pays it, in board minutes, a budget, an employment contract, or another official action. It can't set the amount after the fact.
Your actual housing expenses

What you actually spent during the year to provide or rent your home, including utilities.
The fair rental value of your home, furnished, plus utilities

What your home would rent for, furnished, plus the cost of utilities.

If your church designated more than that limit, you report the difference as income. Publication 517 also caps the exclusion at reasonable pay for your work.

Self-employment tax works differently

The housing allowance is not excluded from self-employment (SECA) tax. It still counts as income when you figure Social Security and Medicare tax, with a few exceptions Publication 517 lists, such as an approved exemption or an allowance paid after you retire.

Source: IRS Publication 517, Social Security and Other Information for Members of the Clergy and Religious Workers. This page gives an estimate, not tax advice. Talk with a tax professional before you file.

Next step

Need board-ready numbers?

The free Compensation Board Packet includes a housing allowance worksheet and board resolution language.

For more on church budgets and staff pay, read our giving and finance articles.

Get the Free Board Packet

Common questions

Housing Allowance FAQ

What is a pastor housing allowance?

A housing allowance, also called a parsonage allowance, is the part of a minister's pay that the church officially designates, in advance, for housing. Under IRS Publication 517, an ordained, commissioned, or licensed minister may be able to exclude it from income tax, up to a limit. For most working ministers, it is not excluded from self-employment tax.

How do I calculate my housing allowance?

Compare three amounts: the allowance your church officially designated in advance, what you actually spent to provide or rent your home during the year (including utilities), and the fair rental value of your home, furnished, plus utilities. The least of the three is the most you can exclude from income tax. The calculator above runs that comparison for you.

Is the housing allowance subject to self-employment tax?

For most working ministers, yes. Publication 517 says the exclusion applies only for income tax. When you figure self-employment (SECA) tax, the housing allowance counts as income, with a few exceptions Publication 517 lists, such as an approved exemption or an allowance paid after you retire.

Does the church have to designate the housing allowance in advance?

Yes. The church must officially designate a definite amount before it pays it, for example in board minutes, a budget, or an employment contract. It can't set the amount later. If the church never designates an amount, your whole salary counts as income.

What if my church designated more than I can exclude?

You report the difference as income. Publication 517 calls it an excess allowance: any amount above the smallest of your reasonable salary, the fair rental value of your home plus utilities, or what you actually spent to provide a home goes back into your gross income.

Who built this

Built by people who only work with churches.

This calculator comes from the team that runs websites, Google Ads, and social media for 800+ churches, led by a pastor of 20+ years. We aren't tax professionals, so take your estimate to yours before you file.

If you want a second set of eyes on your church's online presence, we offer a free Church Marketing Review.

Founded in 2016 by Thomas Costello, a pastor for 20+ years.

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