How Much Should You Tithe Per Month? A Breakdown

Tithing, a long-standing practice of giving a portion of one’s income, is often associated with religious or spiritual traditions. For many, it represents a commitment to supporting their faith community and its outreach efforts. A common question is how to accurately determine the monthly amount. This article guides on calculating a monthly tithe, clarifying the financial considerations involved in this act of giving.

Understanding the Standard Tithing Amount

The concept of tithing refers to contributing one-tenth, or 10%, of one’s income or resources to support a religious community. This practice has deep historical roots, appearing in both the Old and New Testaments of the Bible, with early examples found in ancient texts.

Under Mosaic Law, tithing became a structured requirement for the Israelites, who were instructed to give a tenth of their crops, livestock, and income to the Lord. This tithe supported the Levites, who were responsible for religious duties, and also assisted the poor. While the Old Testament established a 10% benchmark, the New Testament does not explicitly mandate this specific percentage for Christians, often emphasizing generosity and cheerful giving without specifying an exact amount. Nevertheless, 10% remains a widely recognized guideline and a common starting point for many individuals today.

Determining Your Tithable Income

Identifying the income base for tithing involves considering various interpretations, primarily the distinction between gross and net income. Gross income refers to the total amount earned before any deductions, including wages, salaries, bonuses, commissions, and other forms of compensation. Conversely, net income is the amount remaining after certain taxes and deductions are withheld from gross pay. Some individuals choose to tithe on their gross income, considering it the “first fruits” of their earnings, while others prefer to calculate their tithe based on net income, which represents the money they actually receive.

Pre-tax deductions, such as contributions to 401(k) plans, health insurance premiums, and Health Savings Account (HSA) contributions, also factor into this determination. Money contributed to a 401(k) is deducted from gross income before taxes, lowering taxable income. Some perspectives suggest tithing on 401(k) contributions when they are made, viewing them as current income, while others propose tithing on withdrawals in retirement, particularly on the earnings portion. Similarly, health insurance premiums deducted pre-tax from a paycheck are generally excluded from taxable income, leading some to exclude them from tithable income as well.

Regarding HSAs, employer contributions are often considered part of a benefits package rather than direct income, and funds within an HSA are typically restricted to medical expenses. Personal contributions to an HSA, especially if made pre-tax, reduce taxable income, and views vary on whether these should be included in tithable income. Other income sources like bonuses, commissions, rental income, and capital gains also warrant consideration. Many consider these as “increase” and thus tithable, often recommending tithing on the net profit from rental income or capital gains after expenses and cost basis are accounted for. Gifts or inheritances are also sometimes included in tithable income, particularly if they represent a significant increase in resources.

Calculating Your Monthly Tithe

Once a tithable income base is determined, calculating the monthly tithe involves a straightforward application of the chosen percentage. If an individual decides to tithe 10% of their gross monthly income, they would simply multiply their total earnings before any deductions by 0.10. For instance, if gross monthly income is $5,000, the calculation would be $5,000 x 0.10, resulting in a $500 monthly tithe. This approach encompasses all earnings received, prior to taxes or other withholdings.

Alternatively, if the decision is to tithe on net monthly income, the calculation would be based on the amount received after taxes and other deductions are subtracted. If the net monthly income is $4,000, the tithe would be $4,000 x 0.10, equaling $400. This method focuses on the spendable income, acknowledging that a portion of gross earnings is already allocated to mandatory expenses like taxes.

For those with irregular income, such as commissions or bonuses, it can be beneficial to track all income received over a month or a pay period and then apply the chosen percentage to that cumulative amount. This ensures consistency in giving, even when income fluctuates.

For individuals paid bi-weekly or weekly, it is advisable to annualize the income first to determine a consistent monthly figure. For example, a bi-weekly paycheck might be multiplied by 26 (number of pay periods in a year), then divided by 12 to get an average monthly income before applying the tithe percentage. This systematic approach helps maintain a regular giving habit, aligning with the principle of consistent generosity.

Additional Considerations for Giving

Beyond the direct calculation, tithing is a personal decision that extends into broader aspects of generosity and financial stewardship. While 10% is a common guideline, some individuals choose to give more based on their financial capacity and personal conviction. This reflects a desire to contribute beyond a traditional percentage.

Consistency in giving is often emphasized, encouraging individuals to set aside a portion of their income regularly, regardless of the exact amount. This cultivates a habit of intentional giving and supports the ongoing needs of the recipient organization. Personal financial circumstances also play a role; the ability to give may vary due to fluctuating income, unexpected expenses, or periods of financial hardship. Approaching tithing with thoughtfulness, considering one’s current financial situation, allows for a giving practice that is both meaningful and sustainable.