Housing Allowance Resolution for Pastors

A housing allowance is a the most important tax benefit for pastors. Use this resolution to help set a housing allowance for pastors in 2024.

Last Reviewed: November 14, 2023

Church boards can use the language below to create a resolution for a housing allowance. Use it for pastors who own or rent a home.

Important note: A resolution can only be applied prospectively. It can never be applied retroactively.

For a church to have a housing allowance resolution in place for a specific calendar year, it needs to adopt it by December 31 of the previous year. A resolution can be adopted after the start of a new calendar year, but it only applies from the date of the adoption and going forward.

Sample housing allowance resolution for pastors

The following resolution was duly adopted by the board of directors of [Name of Church] at a regularly scheduled meeting held on [Day, Month, Year], a quorum being present:

Whereas, ministers who own or rent their home do not pay federal income taxes on the amount of their compensation that their employing church designates in advance as a housing allowance, to the extent that the allowance represents compensation for ministerial services, is used to pay housing expenses, and does not exceed the fair rental value of the home (furnished, plus utilities); and

Whereas, Pastor [First and Last Name] is compensated by [Name of Church] exclusively for services as a minister of the gospel; and

Whereas, [Name of Church] does not provide Pastor [First and Last Name] with a parsonage; therefore, it is hereby

Resolved, that the total compensation paid to Pastor [First and Last Name] for calendar year 2024 shall be [$_____], of which [$_____] is hereby designated to be a housing allowance; and it is further

Resolved, that the designation of [$_____] as a housing allowance shall apply to calendar year 2024 and all future years unless otherwise provided.

Find quick tips for setting a housing allowance in “Designating a Housing Allowance for 2024.” For detailed information on the parsonages and housing allowances, see chapter 6 in the annual Church & Clergy Tax Guide.

Richard R. Hammar is an attorney, CPA and author specializing in legal and tax issues for churches and clergy.

This content is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. "From a Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations." Due to the nature of the U.S. legal system, laws and regulations constantly change. The editors encourage readers to carefully search the site for all content related to the topic of interest and consult qualified local counsel to verify the status of specific statutes, laws, regulations, and precedential court holdings.

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