Clergy housing allowance calculator
A minister's excludable housing allowance is the least of three numbers: what the church designated, what was actually spent on housing, and the home's fair rental value. Enter all three to see what's excluded from income tax — and what's left over as taxable income.
Enter all three amounts above to see the result.
Estimate only, not tax advice. The allowance must be designated in writing, in advance, and it still counts for self-employment (SECA) tax. Confirm specifics with a CPA.
How the lesser-of-three rule works
The exclusion is capped at the smallest of the three figures, so designating a generous allowance doesn't raise the benefit on its own — a minister still has to spend the money on housing, and it can never exceed the home's fair rental value. Anything the church designated above that least number is excess allowance and is taxable income. The full rule, with a worked example, is in how to calculate a clergy housing allowance, and the benefit overall is covered in how the clergy housing allowance works.
Which expenses count as "actual expenses"
- Rent or mortgage payments (principal + interest)
- A down payment on a home
- Property taxes and homeowner's insurance
- Utilities — electricity, gas, water, trash, basic internet
- Furniture, appliances, and their repair
- Repairs, maintenance, yard care, HOA dues
Food, clothing, and domestic help don't count. Keep receipts.
Keep the numbers behind this clean
Vestrybooks keeps your church's records straight, so the board's housing-allowance resolution and the year's housing totals are one click away at tax time.