Do Churches Have to File Taxes?
If you're starting or managing a church, one of the first questions you may ask is:
"Do churches have to file taxes?"
The short answer is no—most churches do not pay federal income taxes. But that doesn't mean every religious organization can ignore IRS filing requirements.
Understanding the difference could save your organization from costly mistakes.
Are Churches Tax-Exempt?
Yes. Under federal law, churches that meet the requirements of Section 501(c)(3) are generally considered tax-exempt organizations. Unlike many nonprofits, churches are automatically recognized as tax-exempt and are typically not required to apply to the IRS for official recognition to receive that status. They also are generally exempt from filing the annual IRS Form 990 information return.
Not Every Religious Organization Is a Church
This is where many organizations become confused.
Organizations such as:
- Church plants
- Religious ministries
- Faith-based charities
- Mission organizations
- Religious education nonprofits
- Community outreach organizations
may not qualify as churches under IRS rules.
Many of these organizations should apply for IRS tax-exempt recognition and are required to file an annual Form 990-N, Form 990-EZ, or Form 990 depending on their size and annual revenue. Failing to file for three consecutive years can result in automatic revocation of tax-exempt status.
Why You Should Verify Your IRS Status
Many nonprofit leaders assume their organization is properly registered with the IRS—but assumptions can become expensive.
Before filing anything, verify that your organization appears in the IRS database and that your tax-exempt status is active.
If your organization is listed as tax-exempt and has an annual filing requirement, staying current with your required Form 990 filings helps protect your organization's good standing.
Final Thoughts
Most churches do not have to pay federal income taxes or file annual Form 990 returns. However, many religious nonprofits that are not classified as churches do have annual IRS reporting requirements.
If you're unsure whether your organization qualifies as a church or whether you're required to file Form 990-N, Form 990-EZ, or Form 990, it's worth verifying your status before the filing deadline.
Start by checking your organization's IRS status using our Free Search Tool and to prepare and submit your return online.