How Much Do You Tithe? Calculating Your Contribution

Tithing is the practice of giving a portion of one’s income, often for religious or charitable purposes. This ancient practice reflects principles of stewardship and gratitude, commonly viewed as a way to acknowledge a higher power and support community endeavors.

Understanding the Tithe Principle

The concept of tithing centers on proportional giving, with a widely recognized benchmark of 10% of one’s income. This figure has historical roots as a customary portion set aside for religious or communal support.

While 10% is a common starting point, the underlying principle emphasizes giving a portion of one’s financial increase. Interpretations of this percentage can vary among individuals and traditions. Some may view it as a minimum, while others adjust based on personal financial circumstances or spiritual conviction.

Identifying Tithable Income

Determining tithable income involves considering whether to use gross income or net income. Gross income refers to earnings before any deductions, such as taxes, retirement contributions, or insurance premiums, are withheld. Net income is the amount received after these deductions have been applied.

Common income sources typically considered for tithing include wages, salaries, and profits from businesses. Dividends, interest earned on investments, and capital gains from profitable sales are also frequently included. For self-employed individuals, the tithe is often calculated on their net profit after business expenses are accounted for.

Sources commonly debated or excluded from tithable income might include gifts, inheritances, and reimbursements for expenses. Loans and capital gains from the sale of personal assets not typically part of one’s primary income stream, such as a personal residence, are also often considered non-tithable. The decision to tithe on gross versus net income, and the inclusion or exclusion of various income types, is often a personal determination based on individual interpretation and financial philosophy.

Calculating and Applying Your Tithe

Calculating your tithe involves applying the chosen percentage to your identified tithable income. For example, if an individual earns a gross annual salary of $60,000 and decides to tithe 10% of their gross income, the annual tithe would be $6,000 ($60,000 x 0.10). If the same individual’s net annual income after taxes and deductions is $45,000, and they opt to tithe 10% of their net income, the annual tithe would be $4,500 ($45,000 x 0.10). This calculation can be performed for any income frequency, whether weekly, bi-weekly, monthly, or annually.

The frequency of tithing often aligns with when income is received, such as weekly paychecks or monthly salary distributions. Many individuals choose to contribute their tithe at the same time they receive their earnings to maintain consistency. Practical methods for applying or giving the calculated tithe include direct monetary contributions via cash or check. Electronic methods, such as online payment portals, automatic bank transfers, or direct deductions from payroll, are also widely used for convenience and regularity.

While the focus is primarily on monetary contributions, some organizations may accept non-cash contributions, such as stocks or property. However, the tax deductibility of such non-cash contributions requires specific valuation and documentation, including appraisals for items exceeding $5,000. Charitable contributions, including tithes to qualified organizations, may be tax-deductible if taxpayers itemize deductions on Schedule A (Form 1040). The deduction is generally limited to a percentage of adjusted gross income, with specific limits varying based on the type of donation and recipient organization.