Minister - Excludable Housing Allowance

Calculate the excludable housing allowance for a minister. A minister's housing allowance (sometimes called a parsonage allowance or a rental allowance) is excludable from gross income for income tax purposes but not for self-employment tax purposes.

If a taxpayer receives, as part of their salary for services as a minister, an amount officially designated as a housing allowance, the taxpayer can exclude from gross income the lesser of the following amounts:

  • the amount actually used to provide or rent a home
  • the fair market rental value of the home (including furnishings utilities, garage, etc.)
  • the amount officially designated (in advance of payment) as a housing allowance
  • an amount which represents reasonable pay for your services

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Internal notes


6791

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