Should Tithing Be on Net or Gross Income?

In many faith traditions, tithing, the practice of giving a portion of one’s income to a religious organization, is a deeply held belief. A common question is whether the tithe should be calculated based on gross or net income. This decision involves understanding financial definitions and various interpretations of religious guidance. Exploring these distinctions helps individuals navigate their personal tithing decisions.

Defining Gross and Net Income for Tithing

Gross income represents the total earnings an individual receives from all sources before any deductions are subtracted. This includes wages, salaries, tips, bonuses, and other earnings like rental income or investment income. It is the full amount earned before any money is withheld for taxes or other purposes. For example, if an individual’s annual salary is $60,000, that full amount constitutes their gross income.

Net income, conversely, is the amount of money remaining after mandatory deductions are taken from gross income. This figure is often referred to as “take-home pay” because it is the actual amount an individual receives and has available to spend or save. Common mandatory deductions include federal income tax, state income tax (where applicable), Social Security (FICA), and Medicare taxes.

Perspectives Supporting Gross Income Tithing

Many who advocate for tithing on gross income base their perspective on deeply rooted religious principles, such as the concept of “first fruits.” This idea suggests that the initial and best portion of one’s earnings should be given to a religious institution before any other claims or expenses. This approach views all income as a blessing from a divine source, and the tithe should be calculated from the entirety of that blessing.

This perspective emphasizes that mandatory deductions like taxes are obligations to civil authorities, but the tithe is a prior obligation to a divine authority. Adherents believe that giving from gross income demonstrates full faith and obedience, prioritizing spiritual commitments above all other financial demands. This method also simplifies the calculation, as it uses the total earnings figure before subtractions. For instance, if one earns $5,000 in a pay period, a 10% tithe would be $500, regardless of taxes or benefit deductions.

Perspectives Supporting Net Income Tithing

Conversely, those who support tithing on net income interpret “increase” or “income” as the amount available to the individual after fulfilling civil obligations. This viewpoint suggests that mandatory deductions, such as federal, state, and local income taxes, Social Security, and Medicare taxes, are non-discretionary expenses. Since these amounts are legally required to be withheld, they are not considered part of an individual’s disposable income.

This perspective maintains that the tithe should be calculated on the income an individual receives and has control over. For instance, if an individual’s gross income is $5,000, but $1,000 is withheld for taxes and other mandatory deductions, their net income would be $4,000. In this case, a 10% tithe would be $400, reflecting the portion of income they take home.

Considerations for Personal Tithing Decisions

Deciding whether to tithe on gross or net income is a personal choice influenced by individual conviction and specific religious teachings. Religious texts can be interpreted in various ways, and different faith communities may offer differing guidance. Understanding these interpretations and how they align with one’s personal beliefs is important.

Personal financial circumstances also play a role in this decision. Individuals may consider their financial health, including debt obligations, living expenses, and savings goals, when determining a sustainable and faithful approach. Consulting with leaders within one’s religious community can provide specific guidance tailored to their tradition’s understanding of tithing. The decision involves reflection, prayer, and assessing both spiritual principles and practical financial realities.