Guide
Estimated taxes and withholding for ministers
Churches usually do not withhold income tax or Social Security tax from a minister's pay. That puts the job of paying during the year on you.
Two ways to pay
1. Voluntary withholding
You may ask the church to withhold federal income tax by filing a Form W-4. To cover self-employment tax too, add an extra amount on the form. Withholding is treated as paid evenly through the year, which can also fix an underpayment earlier in the year.
2. Quarterly estimated payments
Pay with Form 1040-ES or online. The usual due dates are April 15, June 15, September 15, and January 15 of the following year, moved to the next business day if one falls on a weekend or holiday.
How much to set aside
For self-employment tax alone, a good rule of thumb is about 14.1% of ministry earnings including housing allowance, up to the Social Security wage base ($184,500 in 2026). That is 15.3% applied to 92.35% of earnings. Income tax is extra.
| Ministry earnings (incl. housing) | SE tax (2026) | Monthly set-aside for SE tax |
|---|---|---|
| $40,000 | $5,652 | $471 |
| $65,000 | $9,184 | $765 |
| $90,000 | $12,717 | $1,060 |
Your own number is in the SE tax calculator.
Safe harbors that avoid penalties
You generally avoid an underpayment penalty if your payments and withholding total at least the smaller of:
- 90% of this year's total tax, or
- 100% of last year's total tax (110% if last year's adjusted gross income was over $150,000, or $75,000 if married filing separately).
There is no penalty if you owe less than $1,000 after withholding and credits.
Making it easier
- Open a separate savings account and transfer the set-aside every payday.
- Ask your church to include an SE tax allowance. See the compensation package planner.
- Remember the housing allowance lowers income tax, not SE tax. See dual tax status.