26 USC § 107 - Rental value of parsonages

---
identifier: "/us/usc/t26/s107"
source: "usc"
legal_status: "official_prima_facie"
title: "26 USC § 107 - Rental value of parsonages"
title_number: 26
title_name: "INTERNAL REVENUE CODE"
section_number: "107"
section_name: "Rental value of parsonages"
chapter_number: 1
chapter_name: "NORMAL TAXES AND SURTAXES"
subchapter_number: "B"
subchapter_name: "Computation of Taxable Income"
part_number: "III"
part_name: "ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME"
positive_law: false
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 16, 1954, ch. 736, 68A Stat. 32; Pub. L. 107–181, § 2(a), May 20, 2002, 116 Stat. 583.)"
---


# § 107. Rental value of parsonages

In the case of a minister of the gospel, gross income does not include—

**(1)** the rental value of a home furnished to him as part of his compensation; or

**(2)** the rental allowance paid to him as part of his compensation, to the extent used by him to rent or provide a home and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities.

---

**Source Credit**: (Aug. 16, 1954, ch. 736, 68A Stat. 32; Pub. L. 107–181, § 2(a), May 20, 2002, 116 Stat. 583.)

## Editorial Notes

### Amendments

2002—Par. (2).  inserted “and to the extent such allowance does not exceed the fair rental value of the home, including furnishings and appurtenances such as a garage, plus the cost of utilities” before period at end.

## Statutory Notes and Related Subsidiaries

### Effective Date of 2002 Amendment

> **“(1)** **In general.—** The amendment made by this section [amending this section] shall apply to taxable years beginning after December 31, 2001.
> 
> **“(2)** **Returns positions.—** The amendment made by this section also shall apply to any taxable year beginning before January 1, 2002, for which the taxpayer—
> 
> **“(A)** on a return filed before April 17, 2002, limited the exclusion under section 107 of the Internal Revenue Code of 1986 as provided in such amendment, or
> 
> **“(B)** filed a return after April 16, 2002.
> 
> **“(3)** **Other years before 2002.—** Except as provided in paragraph (2), notwithstanding any prior regulation, revenue ruling, or other guidance issued by the Internal Revenue Service, no person shall be subject to the limitations added to section 107 of such Code by this Act for any taxable year beginning before January 1, 2002.”

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