What's a Pope's Actual Paycheck? The Tax Reality Behind Those Vatican Earnings

Ever wondered how much does a pope make? The question just got a lot more complicated now that Pope Leo XIV — the first American pontiff, born Robert Prevost in Chicago — faces a potential tax bill that could rival many middle-class Americans’ annual income.

The $33K Monthly Salary Revealed

While most of us know church positions typically don’t come with flashy compensation, the Vatican is no ordinary employer. Pope Leo XIV receives approximately 30,000 euros monthly, translating to roughly $33,000 per month or $396,000 annually. For context, this salary far exceeds what you’d expect from a typical religious institution — but then again, leading 1.3 billion Catholics worldwide isn’t exactly an entry-level gig.

The real plot twist? Unlike his predecessors who could quietly decline the salary (predecessor Pope Francis famously refused to claim it), this pope’s American citizenship creates an unexpected financial complication.

The IRS Doesn’t Care About Your Vatican Address

Here’s where things get spicy: the U.S. taxes all citizens on worldwide income, regardless of where they live or work. This means even though Pope Leo XIV has been absent from American soil for decades, Uncle Sam still considers him a taxpayer.

According to Edward A. David, an assistant professor of theology and religious studies 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.” Meanwhile, accounting professor Timothy Fogarty at Case Western Reserve University confirmed there’s no religious exemption for this situation — not even diplomats or heads of state get a pass.

So how much could the pontiff actually owe? Federal and state self-employment taxes combined could total approximately $135,287 annually on his full salary. That’s more than most Americans earn in a year.

Potential Tax Breaks: A Gray Area

The silver lining? Clergy members occupy a unique tax status. The IRS treats them as self-employed when it comes to Social Security and Medicare, which opens certain deduction opportunities that regular employees can’t access.

Pope Leo XIV could potentially claim:

• A standard deduction of $14,600
• Business expense write-offs for housing-related costs (furniture, utilities, etc.) provided by Vatican facilities
• Possible clergy-specific deductions depending on how his employment structure is classified

The challenge here is definitional — whether a pope technically qualifies as a businessman or independent contractor remains murky in tax code territory.

The Offshore Complication Nobody Expected

One wrinkle involves those Vatican Bank accounts. Simply maintaining accounts overseas could technically raise red flags with the IRS as potential “offshore tax evasion” — even without any intentional wrongdoing. The Vatican Bank, for reference, holds assets exceeding $6.1 billion as of 2023.

However, filing form 8938 with the IRS should resolve most concerns. Additionally, as a signing authority for Vatican finances, Pope Leo XIV may need to file a Foreign Bank Account Report with the Treasury Department’s Financial Crimes Enforcement Unit.

The Reality Check

Here’s the irony: while how much does a pope make is the interesting question, actually paying taxes on those earnings is optional. Like Pope Francis before him, Pope Leo XIV could theoretically decline the salary entirely, sidestepping the tax obligation altogether.

For now, the IRS will be watching. The pontiff — turns out — faces the same filing obligations as any American citizen earning substantial income abroad.