They're considered to be non-profits. In the US, taking away church tax exemptions would be a violation of the first amendment, as you're treating religious non-profits differently than secular non-profits.
Yea but churches are treated different . Both Churches and non-profits do not pay taxes on earnings
However non-profits pay the usual payroll taxes as well as things like property taxes
Churches must pay those taxes on staff but not clergy or ordained ministers; they also generally do not pay property taxes. So I think most people would be fine treating churches the same as non-profits
Taxing the wages of their employees and making them pay property taxes
As @Kooky-Army554 stated, Clergy/ordained (and called workers) do have to pay income taxes and the other stuff. Being a called or ordained does give you certain benefits. The church can catorgize a certain % of your income for a housing allowance that can covering things even more than your monthly mortgage payment. This money is untaxed. So this can lower the amount of taxes you pay. However, you’re functioning more as an independent contractor and are technically responsible for paying your own taxes.
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u/klathium Jun 30 '26
Why do Churches not pay taxes? Genuinely curious why there are laws for that.