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Clergy Housing Allowance Exclusion in El Paso, TX 2026

Calculate your clergy housing allowance exclusion tax savings in El Paso, Texas. Texas has no state income tax, so savings come from the federal level.

Texas Tax Context

State Income Tax
None
Local Income Tax
None
Property Tax Rate
1.95%
Tax Burden
Low

No state income tax; border city; very affordable

$1,100
Est. Total Savings
No Limit
Max Deduction
Above-the-Line
Deduction Type
22.0%
Combined Tax Rate

Clergy Housing Allowance Exclusion Savings Calculator for El Paso

$
$

Federal Savings

$1,100

22% bracket

Texas State

$0

0% rate

Local Tax

$0

0% rate

Total Savings

$1,100

22.0% combined

At a 22.0% combined tax rate in El Paso, every $1,000 in deductions saves you $220 in taxes.

Savings by Tax Bracket in El Paso

10%
$500
12%
$600
22%
$1,100
24%
$1,200
32%
$1,600
35%
$1,750
37%
$1,850

Includes 0% Texas state tax on top of federal savings.

Eligibility Requirements

Ministers and clergy who receive a housing allowance as part of compensation

  • 1Must be ordained, licensed, or commissioned minister
  • 2Allowance must be designated by employer in advance
  • 3Limited to lesser of: actual expenses, FMV of home, or designated amount

Common Mistakes to Avoid

  • !Not having allowance designated before payment
  • !Exceeding the fair market value limitation
  • !Forgetting to include for self-employment tax purposes

Required Tax Forms

Form 1040Schedule SE

File these forms with your federal tax return to claim the clergy housing allowance exclusion.

Calculate Your Full Tax Savings in El Paso

Use our free tax calculators to optimize your entire tax return for Texas.

Frequently Asked Questions

How much can I save with the Clergy Housing Allowance Exclusion in El Paso, TX?

In El Paso, Texas, the clergy housing allowance exclusion can save you an estimated $1,100 per year. This includes $1,100 in federal tax savings. The national average savings is $12,000/year.

What is the Texas state income tax rate for El Paso residents?

Texas has no state income tax, which means the clergy housing allowance exclusion only provides federal tax savings for El Paso residents. No state income tax; border city; very affordable

Who qualifies for the Clergy Housing Allowance Exclusion in El Paso?

Ministers and clergy who receive a housing allowance as part of compensation. The eligibility requirements are the same whether you live in El Paso or elsewhere in the U.S., as this is a federal tax deduction. However, your savings amount will vary based on Texas's 0% state tax rate.

What tax forms do I need to claim the Clergy Housing Allowance Exclusion in Texas?

To claim the clergy housing allowance exclusion, you need to file Form 1040 and Schedule SE with your federal return. Filing status affects your deduction limits and tax bracket.

Is the Clergy Housing Allowance Exclusion better in El Paso than in states without income tax?

Since Texas has no state income tax, the clergy housing allowance exclusion only reduces your federal tax bill. Residents in states with income tax get additional state-level savings. However, El Paso residents often benefit from lower overall tax burden (Low).