American Pope Leo XIV's Papal Salary and Tax Obligations in the United States

Pope Leo XIV’s election as the first American pontiff has brought an unprecedented question to the fore: how do U.S. tax laws apply to a pontiff who maintains American citizenship? Born Robert Prevost in Chicago, Pope Leo XIV represents a unique intersection of Vatican authority and American tax jurisdiction—and the financial implications are substantial.

The crux of the matter lies in a fundamental principle of U.S. taxation: all American citizens are required to pay federal income taxes on their worldwide earnings, regardless of where they reside or what role they hold. This principle applies even to someone serving as the spiritual leader of the Catholic Church.

The Income and U.S. Tax Status of the New Pontiff

Pope Leo XIV is entitled to an annual papal salary of approximately €30,000 per month, equivalent to roughly $33,000 monthly or $396,000 annually. While many assume that religious figures and heads of state might enjoy blanket exemptions from taxation, U.S. tax law operates quite differently.

According to Edward A. David, an assistant professor in the theology and religious studies department at King’s College London, “The new pope is unlikely to be exempt from U.S. income taxes. U.S. tax law claims the right to tax all citizens on their worldwide income.” Timothy Fogarty, an accounting professor at Case Western Reserve University, reinforced this view by noting that there is no “blanket exception for religious personnel”—and this exemption does not extend to diplomats or heads of state either.

Calculating Annual Tax Liabilities on Papal Compensation

Should Pope Leo XIV claim his full salary, the tax burden would be substantial. Federal and state self-employment taxes combined could total approximately $135,287 annually—a significant portion of the compensation package.

The calculation reflects a fundamental classification: clergy members in the U.S. tax system are treated as self-employed when it comes to Social Security and Medicare contributions. This status directly impacts how the papal salary would be taxed, placing the pope in a different position than salaried employees who benefit from employer tax withholding arrangements.

Available Deductions and Clergy Tax Considerations

However, all is not lost. The tax code provides several potential avenues to reduce this liability. First, Pope Leo XIV could claim the standard deduction of $14,600, a baseline reduction available to most taxpayers. More significantly, he may have opportunities to write off legitimate business expenses—a common benefit extended to self-employed individuals and clergy members.

The Vatican’s provision of housing creates another deduction possibility. Should he deduct housing-related expenses—ranging from furniture to utilities—this could further reduce taxable income. The question of whether these housing costs qualify as deductible business expenses remains somewhat ambiguous, but precedent suggests clergy members often receive favorable treatment in this area.

Compliance Complexities for Heads of State with U.S. Citizenship

A significant complication emerges from the intersection of Pope Leo XIV’s American citizenship and his international financial position. Simply maintaining accounts overseas could theoretically trigger offshore tax evasion concerns. However, full compliance with IRS requirements—specifically filing Form 8938 with the Internal Revenue Service—would resolve this issue.

Additionally, in his capacity as a signing authority for the Vatican Bank (whose holdings exceeded $6.1 billion as of 2023), he may need to file a Foreign Bank Account Report with the Treasury Department’s Financial Crimes Enforcement Unit. These compliance measures, while administratively burdensome, provide clear pathways to legal standing.

The Practical Reality: Entitlement Versus Actual Claim

Here lies a final, crucial distinction: while Pope Leo XIV is legally entitled to receive this compensation package, few pontiffs actually claim it. His predecessor, Pope Francis, declined the salary entirely, choosing instead to live modestly and redirect resources to Church charitable operations. This precedent suggests that while the pope may technically owe taxes if he accepts the salary, he has the option to sidestep the entire obligation by simply not claiming the compensation.

The situation underscores a broader principle of American tax law: the obligation to pay taxes on earned income is inseparable from American citizenship, regardless of title, office, or spiritual authority. Should Pope Leo XIV choose to receive his papal salary, he would join the ranks of ordinary Americans in settling tax obligations—a uniquely democratic outcome for the head of a global religious institution.