Housing

Housing Allowance

Housing allowances should be adopted by the church vestry or bishop’s committee and included as part of their minutes, in advance of the calendar year. However, churches that fail to designate an allowance in advance of a calendar year should do so as soon as possible in the new year. The tax exclusion can only go into effect after adoption (it cannot be retroactive).

Clergy who live in a rectory or vicarage:

Clergy who rent:

Clergy who own homes:

  • Do not pay income taxes on the amount designed as a housing allowance, to the extent used to pay housing expenses.
  • The housing allowance cannot exceed the lesser of:
    1. actual housing expenses, or
    2. the fair rental value of the home (furnished, plus utilities).
  • Worksheet for clergy who own homes

A priest, under no circumstances, can exclude any portion of an allowance retroactively designated by the church.

Please contact Bill Potts (phone 602.254.0976), canon for finance and property, if you have any questions.