How Much to Tithe From Gross or Net Income?

Tithing, a practice rooted in various religious traditions, represents a commitment of giving. It signifies a spiritual discipline and a way to support religious communities and their outreach efforts. While interpretations vary, its overarching purpose remains consistent across faiths: to acknowledge a higher power as the source of blessings and contribute to the greater good of a community. Historically, tithing has served as a foundational element in sustaining religious institutions and their charitable endeavors.

The Core Tithing Principle

The principle of tithing commonly involves dedicating a tenth, or 10%, of one’s increase to a religious organization. This percentage is not a modern invention but has ancient roots, appearing in biblical narratives long before the Mosaic Law. For instance, Abraham is recorded as giving a tenth of the spoils of war to Melchizedek, a priest-king, which is often cited as an early instance of this practice. Later, under the Mosaic Law, tithing became a structured and mandatory practice for the Israelites, designed to support the Levites who served in the temple and had no land inheritance.

This historical and scriptural context establishes the 10% figure as a traditional benchmark for tithing. This portion is a return to a divine source, recognizing provision and demonstrating faith. While the legalistic observance of tithing as outlined in the Old Testament may not be strictly applied in all modern contexts, the 10% guideline persists as a common starting point. It is viewed as a foundational act of stewardship and generosity within many faith traditions.

Defining Tithable Income

Identifying “tithable income” is a central consideration. Tithable income encompasses a broad range of financial inflows that represent an individual’s increase. This includes wages, salaries, and bonuses from employment. Other forms of income, such as commissions, investment earnings (dividends and interest), rental income, and certain gifts or inheritances, are often considered part of one’s total increase subject to tithing.

A frequent question is whether to calculate the tithe on gross income (before taxes and deductions) or net income (after taxes and deductions). Those who advocate for gross income tithing often cite the concept of “first fruits,” emphasizing the tithe should be given from the initial and best portion of one’s earnings, before other obligations. This perspective suggests that taxes are an outflow from income, and giving from the gross amount demonstrates a deeper act of faith and acknowledges the divine source of provision.

Conversely, some individuals calculate their tithe based on net income, arguing this approach aligns more closely with their actual disposable income. This perspective considers that income is not truly possessed if immediately withheld for taxes. The decision between gross and net income is a personal conviction, with both approaches reflecting a commitment to giving based on individual financial realities and interpretations.

Steps for Calculating Your Tithe

Calculating your tithe involves determining your tithable income and deciding whether to use gross or net figures. The initial step requires gathering all relevant income statements for a specific period, such as weekly, bi-weekly, monthly, or annually. For regular salary or wages, this typically involves reviewing pay stubs or annual income summaries to ascertain total earnings before deductions (for gross) or after (for net).

Once total tithable income for the period is established, apply the chosen tithing percentage, commonly 10%. To perform the calculation, convert the percentage into its decimal form (e.g., 10% becomes 0.10). Multiply this decimal by the income amount. For example, if your gross monthly income is $4,000, multiplying $4,000 by 0.10 yields a tithe of $400.

For individuals with variable income streams (sales commissions, bonuses, or self-employment earnings), the process remains similar. The 10% rate is applied to the total amount received for irregular income sources. For self-employed individuals, the tithe is typically calculated on net profit, which is income remaining after necessary business expenses have been deducted, aligning with the concept of tithing on actual increase.

Non-Monetary Contributions to Tithing

While financial contributions are a primary aspect of tithing, the concept extends to other forms of giving that reflect a holistic approach to stewardship. The principle of “first fruits” traditionally referred to giving the earliest and best portion of one’s harvest or produce. In a contemporary context, this concept encompasses giving from the initial and best of any income, wealth, or blessings, rather than merely the leftovers. Giving first fruits demonstrates a recognition that all resources originate from a higher source and signifies obedience and gratitude.

Beyond monetary donations and first fruits, many traditions emphasize the contribution of time, talent, and service as integral to tithing. This involves dedicating personal abilities and hours to support religious communities or charitable causes. Volunteering time for community projects, sharing professional skills to benefit a religious institution, or using personal talents in service to others are valuable forms of non-monetary tithing.