For pastors and ministry staff, your leadership is critical. Week after week, you carry the weight of spreading the Gospel, caring for people, and guiding your community. Your faithfulness matters—and Scripture encourages you in this work: “And let us not grow weary in doing good, for at the proper time we will reap a harvest if we do not give up” (Galatians 6:9). As you pour out for others, it is wise and biblical to steward the financial tools available to you, including the Minister’s Housing Allowance.
The housing allowance is one of the most meaningful—and often underutilized—benefits available to ministers. In short, it allows credentialed ministers to exclude certain housing-related expenses from taxable income. This can significantly reduce your tax burden and free up resources for both present needs and future ministry impact. You can find a full overview via this link on our website, but here is a concise summary of what housing expenses can be included: expenses directly related to providing or maintaining your home may be considered for the allowance.
What Housing Expenses Can Be Included?
While the IRS doesn’t provide a perfectly precise list (as Amy from The Pastor’s Wallet aptly puts it, “that clear-cut list…is still out there somewhere with unicorns and the Easter bunny”), experience and precedent give us helpful guidance. The following categories are commonly recognized as legitimate housing allowance expenses:
1. Housing Payments
• Rent, mortgage payments, or down payments
• Costs associated with purchasing a home
2. Taxes & Interest
• Property taxes
• Mortgage interest
3. Utilities
• Heat, electricity, water, trash service
• Basic telephone service (cell phones typically do not qualify)
4. Furnishings & Household Items
• Furniture, appliances, dishes, cookware
• Décor such as rugs, curtains, bedding, and linens
5. Home Insurance & Fees
• Homeowner’s insurance
• HOA dues
• Home security systems
6. Repairs, Maintenance & Miscellaneous
• Lawn care, snow removal
• Repairs, improvements, and general upkeep
• Cleaning supplies, lightbulbs, and similar household needs
While the list of allowable expenses directly related to providing or maintaining a home is broad, the IRS prohibits expenses such as groceries, personal consumables/electronics, and paid domestic staff as non-qualifying expenses.
At Servant Solutions, we are committed to studying and staying informed about IRS tax codes and their implications for our members. However, we are not licensed tax professionals. For personalized advice or assistance with tax preparation, we strongly recommend seeking guidance from a qualified tax expert.
You Lead Faithfully—We’re Here to Support You
At Servant Solutions, our mission is Serving Those Who Serve. We exist to help you thrive—both now and in retirement. With lower-than-average fees, free financial planning, DIY legal documents, and the unique ability for retired ministers in our plan to continue claiming the housing allowance, we are honored to support your calling.
You are making a difference. And by stewarding the housing allowance wisely, you strengthen your ability to continue serving God’s people with joy, confidence, and long-term stability.