Housing Allowance Exclusion

As a retired clergy, you are most likely able to exclude from taxable income all or a portion of the the retirement distributions you receive from sources covered by the annual conference's housing allowance resolution.

Allowable Amount

The portion of such distributions you may include is equal to the smallest of the following amounts:

  • the amount designated as a housing allowance by your annual conference for the tax year in question;
  • the amount spent for your housing (mortgage principal and interest, utilities, taxes, insurance, furnishings, maintenance, etc.); or
  • the current fair rental value of your home, including furnishings, plus the current year cost of your utilities (whether you own or rent a home).

NOTE: The exclusion does not transfer to surviving spouses after the death of a clergy person. 

Housing Allowance Exclusion Worksheet

This worksheet will help you determine the amount that you may exclude from the gross income pursuant to the provisions of section 107 of the Code, which provide that "a minister of the gospel" may exclude a "housing allowance" from his or her gross income. Click here to view the worksheet.

Annual Conference Resolution

Every year at Annual Conference, a resolution is submitted to approve the allowance for the following tax year. Some tax professionals request a copy to submit with clergy taxes. Click here to print a copy of the  resolution for the 2021 tax year.


This information is being distributed with the understanding that neither the Board of Pensions or the California-Nevada Annual Conference is not engaged in rendering legal, accounting, or other professional advice. If you require legal advice or other expert assistance, please seek the services of a competent professional advisor.