Calculator
Clergy compensation package planner
Many churches add an allowance to help a minister cover self-employment tax. That allowance is itself taxable earnings, so it has to be grossed up. This does the math.
Result
SE tax allowance needed–
Total SE-taxable earnings–
Minister's SE tax–
SE tax left uncovered–
Income tax on the allowance (est.)–
Total cost to the church–
Remember: the allowance is income-taxable to the minister, so a church wanting to make the minister fully whole would add more. Simplified: single filer, 2026 SE tax rules, no other income. Church retirement and health contributions are shown as cost only and are treated as not subject to SE tax. Confirm with a clergy-savvy tax professional.
How to read the result
- Ministers generally pay both halves of Social Security and Medicare tax, about 15.3% of 92.35% of earnings including housing.
- The allowance raises earnings, which raises the SE tax, which is why the figure is larger than the tax on salary alone.
- Many churches reimburse part rather than all. Rerun with a lower figure by switching the allowance off and adding the amount to salary.