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Clergy Housing Allowance Exclusion in Saint Paul, MN 2026

Calculate your clergy housing allowance exclusion tax savings in Saint Paul, Minnesota. With Minnesota's 7.85% state tax rate, your combined savings are higher.

Minnesota Tax Context

State Income Tax
7.85%
Local Income Tax
None
Property Tax Rate
1.12%
Tax Burden
High
$1,493
Est. Total Savings
No Limit
Max Deduction
Above-the-Line
Deduction Type
29.9%
Combined Tax Rate

Clergy Housing Allowance Exclusion Savings Calculator for Saint Paul

$
$

Federal Savings

$1,100

22% bracket

Minnesota State

$393

7.85% rate

Local Tax

$0

0% rate

Total Savings

$1,493

29.9% combined

At a 29.9% combined tax rate in Saint Paul, every $1,000 in deductions saves you $299 in taxes.

Savings by Tax Bracket in Saint Paul

10%
$893
12%
$993
22%
$1,493
24%
$1,593
32%
$1,993
35%
$2,143
37%
$2,243

Includes 7.85% Minnesota 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

Minnesota residents should verify that this deduction is also recognized on their state tax return for additional savings of up to 7.85%.

Common Mistakes to Avoid

  • !Not having allowance designated before payment
  • !Exceeding the fair market value limitation
  • !Forgetting to include for self-employment tax purposes
  • !Forgetting to claim the deduction on your Minnesota state return (missing 7.85% additional savings)

Required Tax Forms

Form 1040Schedule SE

File these forms with your federal tax return to claim the clergy housing allowance exclusion. Minnesota may require additional state-specific forms.

Calculate Your Full Tax Savings in Saint Paul

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

Frequently Asked Questions

How much can I save with the Clergy Housing Allowance Exclusion in Saint Paul, MN?

In Saint Paul, Minnesota, the clergy housing allowance exclusion can save you an estimated $1,493 per year. This includes $1,100 in federal tax savings and $393 in Minnesota state tax savings. The national average savings is $12,000/year.

What is the Minnesota state income tax rate for Saint Paul residents?

Minnesota has a 7.85% state income tax rate. Saint Paul residents have no additional local income tax.

Who qualifies for the Clergy Housing Allowance Exclusion in Saint Paul?

Ministers and clergy who receive a housing allowance as part of compensation. The eligibility requirements are the same whether you live in Saint Paul or elsewhere in the U.S., as this is a federal tax deduction. However, your savings amount will vary based on Minnesota's 7.85% state tax rate.

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

To claim the clergy housing allowance exclusion, you need to file Form 1040 and Schedule SE with your federal return. Minnesota residents should also check if the state allows this deduction on their state return, which could provide an additional 7.85% savings. Filing status affects your deduction limits and tax bracket.

Is the Clergy Housing Allowance Exclusion better in Saint Paul than in states without income tax?

Yes, Saint Paul residents benefit more because Minnesota's 7.85% state income tax means the deduction reduces both your federal AND state tax liability. In states with no income tax (like Texas, Florida, or Nevada), this deduction only reduces federal taxes. Your combined rate of 29.9% means more savings per dollar deducted.