How to Calculate a Tithe: Simple Steps and ExamplesA tithe is traditionally one-tenth (10%) of a person’s income given as a religious offering. Calculating a tithe is straightforward, but the exact method depends on what you consider “income” and whether you’re using gross or net figures. This article explains clear, practical methods for calculating a tithe, gives examples for different income types, and offers tips for common scenarios.
1) Decide your tithe basis: gross vs. net vs. discretionary
Before calculating, decide which of these approaches you’ll use:
- Gross income — 10% of total income before taxes and deductions (common in many churches).
- Net income — 10% of take-home pay after taxes and withholdings.
- Discretionary tithe — 10% of income after essential expenses (rent/mortgage, utilities, food), used by some who prefer giving from surplus.
Choose the approach that matches your beliefs and your congregation’s guidance.
2) Determine the income types to include
Income may come from different sources. Common categories:
- Wages and salaries (regular paychecks)
- Bonuses and commissions
- Freelance/contract income
- Tips
- Investment income (dividends, interest)
- Rental income
- Gifts and one-time windfalls (some treat separately)
Some people tithe on all income; others exclude certain types (like gifts). Be consistent with your chosen principle.
3) Simple percentage method (10%)
The standard tithe is 10%. Use this formula:
Tithe = Income × 0.10
Examples:
- If gross monthly income = \(4,000 → Tithe = \)4,000 × 0.10 = $400
- If net monthly income = \(2,800 → Tithe = \)2,800 × 0.10 = $280
4) Step-by-step examples for different pay schedules
Example A — Weekly wage (gross basis)
- Weekly gross pay = $750
- Tithe = \(750 × 0.10 = **\)75** per week
- Monthly equivalent ≈ \(75 × 52 / 12 = **\)325** per month
Example B — Biweekly net pay (net basis)
- Biweekly take-home = $1,900
- Tithe per pay period = \(1,900 × 0.10 = **\)190**
- Annual: \(190 × 26 = **\)4,940**
Example C — Salary with bonus and freelance
- Annual salary (gross) = $60,000
- Annual bonus = $5,000
- Freelance income = $8,000
- Total annual income = $73,000
- Annual tithe = \(73,000 × 0.10 = **\)7,300**
- You can pay this annually, or divide into monthly ($608.33) or per-paycheck amounts.
5) Tithing on irregular or seasonal income
For irregular income (freelance, tips, seasonal work), options:
- Tithe when income is received (pay-as-you-go).
- Track total income for the year and tithe annually.
- Use a running balance: deposit 10% of each payment into a separate account.
Example:
- Freelance jobs: \(400, \)1,200, \(600 across three months. Set aside 10% each time → \)40, \(120, \)60 → total $220 to tithe.
6) Tithe after essential expenses (discretionary method)
Some prefer to cover essentials first, then tithe on remaining disposable income.
Example:
- Monthly net income = $3,500
- Essential expenses = $2,600
- Discretionary amount = $900
- Tithe (10% of discretionary) = \(900 × 0.10 = **\)90**
This method reduces immediate burden but changes the amount given compared to gross/net methods.
7) Handling taxes, pre-tax deductions, and retirement contributions
Decide whether to tithe on pre-tax income (before retirement contributions or health insurance) or post-deduction take-home. Common practices:
- Tithe on gross (pre-tax) pay for simplicity and consistency.
- Some tithe on net after pre-tax retirement contributions because those reduce usable income.
- If unsure, ask your faith community or leader for guidance.
Example:
- Gross paycheck = \(3,000; 401(k) contribution = \)300 pre-tax; taxable income = $2,700.
- Tithe on gross: \(3,000 × 0.10 = **\)300**
- Tithe on net after 401(k): \(2,700 × 0.10 = **\)270**
8) Rounding and practical tips
- Round to the nearest dollar for simplicity.
- Consider automatic transfers to a separate account to accumulate tithes.
- If cash flow is tight, set a plan (e.g., smaller regular amounts plus a larger annual gift).
- Keep records for personal budgeting and any requirements your congregation may have.
9) Examples summarised
| Scenario | Income used | Tithe (10%) |
|---|---|---|
| Weekly gross $750 | Gross weekly | $75/week |
| Biweekly net $1,900 | Net per pay | $190/period |
| Salary \(60k + bonus \)5k + freelance $8k | Total gross annual $73k | $7,300/year |
| Net \(3,500 — essentials \)2,600 | Discretionary $900 | $90/month |
10) Final considerations
Tithing is both a financial practice and a personal, often spiritual, commitment. The “right” calculation is the one you can maintain consistently and that aligns with your beliefs or your faith community’s guidance. Be transparent with yourself about which income you include, keep a simple system, and adjust as your circumstances change.
Leave a Reply