July 03, 2025

How Much Money Should a Pastor Make?

26 minutes

A pastor’s salary is determined by several factors, including church size and budget, geographic location, cost of living, education, experience, and responsibilities. While there is no universal answer, Josh and Sam discuss general guidelines and what pastors should expect from their churches.

Remember, everything is negotiable on the front end. Don’t go to a church and negotiate after you accept the position.

Some denominations are known to pay better than others.

Most pastors are underpaid, but few get paid far too much.

The median household income of a community is typically not where pastors should be given their experience, education, and responsibilities. A small school superintendent is a better comparison point for a full-time pastor at a mid-size to large church.

Rent x 3 is a good rule of thumb.

For churches with budgets between $600,000 and $2,000,000, 10% of the income received is typical for a compensation package of a lead pastor.

Remember, you must consider salary, housing, benefits, and social security exemption.

Should churches pay for half of FICA if a pastor has opted into social security? Many churches do not realize that Section 3121(b)(8)(A) prevents them from withholding Social Security and Medicare taxes (FICA) from a minister’s wages. Instead, ministers are responsible for paying Self-Employment Contributions Act (SECA) tax on their salary and housing allowance—unless they have obtained an approved exemption.

Resources:

The Revitalization at Shadowbrook Church

Doctor of Educational Ministry, The Southern Baptist Theological Seminary

Churchteams

Church Answers Certifications

FREE Research Report! New Surprising Insights

Church Answers Central

The Hope Initiative

Episode Sponsors:

Shadowbrook Church members in Suwanee, Georgia, have rediscovered their first love–serving Christ and loving others.

But during Jerrod Rumley’s first two years as pastor, he was shepherding a divided congregation.

A small number of members seemed better suited for sharing gossip than the gospel.

Older and younger members had relegated the Great Commission to the church staff.

Gen-Xers were comfortable in a congregation that placed few demands upon them.

Others were busy meeting community needs–yet seldom shared the gospel.

Rumley needed guidance to unify his splintered congregation.

He knew exactly where to turn.

Go to SBTS.edu/Unified to read about the steps Shadowbrook’s pastor took to erase barriers and revive the church’s passion for evangelism and discipleship.

Those same steps are available to you, and it begins at SBTS.edu/Unified.

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By Thom Rainer

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