Free tool · Ministers & clergy
Housing Allowance Calculator
A correctly designated housing allowance can exclude a real share of a minister's pay from federal income tax — but only up to the lowest of three limits. Enter your numbers to see an estimate of what may be excludable.
$0/yr
This is the lowest of your three figures — the IRS limit on the exclusion.
Note: while you're working, even the excludable amount is generally still subject to self-employment (SECA) tax unless you have an approved Form 4361 exemption.
Minister housing allowance — common questions
How much of a minister’s pay can be a tax-free housing allowance?
The income-tax exclusion is limited to the lowest of three amounts: the housing allowance your church designated in advance and in writing, your actual housing expenses for the year, and the fair rental value of your home (furnished, plus utilities). Anything your church designates above that lowest figure is reported as taxable income.
Does the housing allowance have to be designated in advance?
Yes. To be excludable, the allowance must be officially designated by the church in advance of the pay period and put in writing (for example, in board minutes or an employment agreement). A retroactive designation does not qualify.
Is the housing allowance also exempt from self-employment (SECA) tax?
No. For Social Security and Medicare purposes ministers are treated as self-employed, so the housing allowance is generally still subject to SECA tax while you are working, even though it is excluded from federal income tax — unless you have an approved Form 4361 exemption.
What housing expenses count toward the allowance?
Common qualifying costs include rent or mortgage payments, property taxes, homeowners insurance, utilities, furnishings and appliances, and repairs and maintenance. You must be able to substantiate the amounts you claim.
Is this calculator tax advice?
No. It gives a simplified estimate based only on the figures you enter and the general IRS lesser-of-three rule. It is educational, not a recommendation, and not tax, legal, or investment advice. Confirm your specifics with a qualified CPA before filing.