Church Income Taxes

Posted 5/15/2019

Dear NPLI Management Solutions,

Is our church required to pay state or federal income taxes?

RESPONSE.  If your church is legally recognized as a church, then it is automatically exempt from having to pay federal income taxes to the IRS and is excluded from having to file an annual IRS tax return.  For details, view this IRS webpage.

Definition of “church”.  View this IRS webpage for information on how the IRS defines the term “church”.



For state income taxes, it will vary by state. For instance, in California, churches are required to file a 1-time application in order to be recognized and approved from having to pay state income taxes and be excluded from having to file an annual state tax income return. Check with your local state Franchise Tax authority office for details.