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Religious Tax Exemptions by State

Use the table below for income, property, and sales tax exemptions by state. States may offer exemption from corporate income, sales, use, and other taxes that they levy. Typically, you’ll need to submit an application to the Department of Revenue. Review regulations and mark your calendar as renewals may be required and can range between 1 and 5 years.

Governments have sought to avoid excessive government entanglement in religion

“Both before and after adoption of the Bill of Rights, state legislatures enacted, and the courts upheld, tax exemptions for religious entities, which are generally shared with charities. The federal legislature from its earliest days has exempted religious entities from the national tax base. Today, in all 50 states and the District of Columbia, statutes and constitutions provide various types of property tax exemptions for religious organizations. Similarly, the federal government has exempted churches and other religious organizations from federal taxation in the modern federal tax code since ratification of the Sixteenth Amendment to the U.S. Constitution in 1913. By providing exemptions for religious properties, publications, and other related materials and activities, legislatures have sought to encourage the beneficial secular effects of religious organizations while avoiding First Amendment–based concerns of excessive government entanglement and establishment of religion. For the courts, navigating the religion clauses of the First Amendment has proved challenging.” – https://firstamendment.mtsu.edu/article/taxation-of-religious-entities/

State Income tax exemption Property Tax Exemption Religious/Church Exemption Sales Tax Exemption
Alabama NOT REQUIRED Exempt upon obtaining Determination Letter from the IRS No tax under Section 40-22-1 shall be levied upon the recordation of any deed, bill of sale, or any similar instrument or conveyances of like character which conveys title to or any interest in any real or personal property within this state and which is executed and delivered for the purpose of carrying out the division of any church, congregation, parish, religious congregation, religious assembly, diocese, or other religious organization into two or more similar organizations or for the purpose of carrying out a merger or consolidation of any two or more such religious organizations into a single organization. This exemption shall apply to such recording regardless of the date on which the division, merger, or consolidation occurred. Religious organizations are exempt from registering in order to solicit contributions in or from the state. Ala. Code § 13A-9-71. Agency: Alabama Department of Revenue Form: ST: EX-A1: Application for Sales Tax Certificate of Exemption and Instructions Agency Fee: $0 Notes: Most nonprofit organizations will not qualify for a sales tax exemption in Alabama. Alabama Statutes § 40-9-1 et seq describes organizations that may qualify for an exemption.
Alaska NOT REQUIRED Exempt upon obtaining Determination Letter from the IRS The State of Alaska Constitution, Article IX, Section 4, provides that, subject to conditions and exceptions provided by law, property of the state and its political subdivisions and property used for nonprofit, religious, charitable, cemetery, or educational purposes is exempt from taxation and provides that other exemptions may be granted by law. In addition to those listed above, AS 29.45.030 provides for additional mandatory exemptions, which are spelled out in statute. Religious organizations are exempt from certain registrations in order to engage in charitable solicitation. Alaska Stat. Ann. § 45.68.120 NOT REQUIRED Alaska does not currently have a state level sales tax.
Arizona NOT REQUIRED Exempt upon obtaining Determination Letter from the IRS 42-11109 - Exemption for religious property; affidavit. A. Property or buildings that are used or held primarily for religious worship, including land, improvements, furniture and equipment, are exempt from taxation if the property is not used or held for profit. Churches are not automatically exempt from property taxes. Churches must make an affidavit as to eligibility before the county assessor when first claiming the exemption. Ariz. Rev. Stat. Ann. § 42- 11109 and 11152. For income tax exemption, see Ariz. Rev. Stat. Ann. § 43-1201. Arizona does not provide an overall exemption from Transaction Privilege Tax (TPT) and use tax for nonprofit organizations. Generally, sales made to churches, schools and other non-profit organizations are subject to TPT and use tax.
Arkansas Agency: Arkansas Department of Finance and Administration Agency Fee: $0 Notes: Apply by submitting a copy of the IRS Determination Letter, the first two pages of IRS Form 1023, and a statement declaring exemption under ACA 26-51-303 or ACA 26-51-309. Organizations without an IRS Determination Letter should submit Form AR1023CT, a copy of the articles of incorporation, and a copy of the bylaws. Certain organizations and real estate qualify for property tax exemptions under the Arkansas Constitution, including: Public property used exclusively for public purposes. Churches, used as such. Cemeteries, used exclusively as such. For property tax exemption, see Ark. Const. art. XVI, § 5; Ark. Code Ann. § 26-3-206 and 301. For income tax exemption, see Ark. Code Ann. § 26-51-206 and 303. Agency: Arkansas Department of Finance and Administration Notes: Arkansas does not offer a general exemption application for nonprofits, but charitable sales are exempted under certain conditions. The certificate of exemption can be used to exempt an organization from sales tax in a specific purchase.
California Agency: California Franchise Tax Board Agency Fee: $25 ($0 for exemption request) Notes: Use form FTB-3500a if you have received an IRS Determination Letter and form FTB-3500 if you have not. The Church Exemption may be claimed on property that is owned, leased, or rented by a religious organization and used exclusively for religious worship services (see section 3(f) and section 5 of article XIII of the California Constitution and Revenue and Taxation Code section 206). California Constitution Article XIII, Section 4(b) provides the California Legislature with the authority to exempt property used exclusively for religious, hospital, or charitable purposes. Churches must apply for and receive an exempt determination or acknowledgement letter from the California Franchise Tax Board. Cal. Rev. and Tax'n Code § 23701d. Additionally, California religious organizations are exempt, upon application, from sales and use taxes and property tax. See Publications 18 and 48. Agency: California Franchise Tax Board Agency Fee: $25 ($0 for exemption request) Notes: Use form FTB-3500a if you have received an IRS Determination Letter and form FTB-3500 if you have not.
Colorado NOT REQUIRED Exempt upon obtaining Determination Letter from the IRS Under the state constitution, property that is used solely and exclusively for religious worship is exempt from property tax, unless otherwise provided by general law. By statute, the property must be owned and used solely and exclusively for religious purposes to qualify for the exemption. No relevant exemptions found Exemption form Sales Tax & State-Administered Local Sales Tax Agency: Colorado Department of Revenue Agency Fee: $0 Notes: Colorado organizations can apply for state sales tax exemption if they have an IRS determination letter. If approved, you will receive a Certificate of Exemption.
Connecticut Agency: Connecticut Department of Revenue Services Notes: Exemption from Connecticut income tax is obtained by submitting a copy of your IRS Determination Letter when submitting Form REG-1. State law provides 14 different property tax exemptions for qualifying nonprofit organizations. The primary exemption is for property owned by, or held in trust for, corporations organized exclusively for charitable, scientific, educational, literary, historical, or open-space land preservation purposes. State law also provides narrow exemptions for specific types of nonprofits, including specific colleges and universities, agricultural and horticultural organizations, religious organizations, hospitals, and camps and recreational facilities. The organization’s principal or income must be used or appropriated exclusively for religious or charitable purposes; Property must be used exclusively as a house of religious worship ; Property must be used exclusively as one or more of the following purposes: (1) school, (2) daycare, (3) nonprofit camp or recreational facility for religious purposes, (4) parish house, (5) orphanage, (6) children’s home, (7) reformatory, or (8) infirmary; or Property must be used to house officiating clergy. Religious societies and corporations must file a certificate with the Secretary of the State. Conn. Gen. Stat. Ann. § 33-264b. NOT REQUIRED Upon receiving an IRS determination letter, Connecticut nonprofits are automatically exempt from state sales tax. Organizations must follow the guidelines in Guide SN 95(10). This includes providing sellers with a copy of CERT-119: Purchases of Tangible Personal Property and Services by Qualifying Exempt Organizations.
Delaware NOT REQUIRED Any corporation granted an exemption by the IRS as a non-profit organization under Section 501(c) is exempt from Delaware Corporate Income Tax. Property used for educational, religious, or charitable purposes, and not held by way of investment, is exempt from tax. ( Sec. 8105, Tit. 9, Code ) However, the exemption does not apply to ditch taxes, sewer taxes, and/or utility fees. Religious organizations that have been granted exemption from taxation under § 501 of the Internal Revenue Code are exempt from registration requirements for solicitations. D.C. Code § 44-1703(b). NOT REQUIRED Delaware does not collect sales and use taxes at the state level.
District of Columbia (Washington DC) Agency: District of Columbia Office of Tax and Revenue Filing Method: Online Agency Fee: $0 Notes: Foreign organizations must have an office or physical location in DC to be eligible. A certificate of authority is also required of foreign organizations. Paper exemption applications are available upon request. Churches, government units and many non-profit agencies do not pay tax on property used for a tax-exempt purpose. The Department of Revenue determines which properties are exempt. No relevant exemptions found Agency: District of Columbia Office of Tax and Revenue Filing Method: Online Agency Fee: $0 Notes: Foreign organizations must have an office or physical location in DC to be eligible. A certificate of authority is also required of foreign organizations. Paper exemption applications are available upon request.
Florida Not-for-profit corporations are subject to corporate income tax. However, a not-for-profit corporation that is exempt from federal taxation under Internal Revenue Code section 501(c)(3) is only required to file a Florida corporate income tax return (Form F-1120) if it has unrelated business income or it files federal Forms 990-C or 990-T with the Internal Revenue Service. Florida law, Chapter 196, provides property tax exemption(s) to eligible not-for-profit organizations that own and operate real estate and or tangible business property as of January 1, for the following purposes: Religious. Charitable. Religious institutions are not exempt from annual applications for tax exemption. Fla. Stat. Ann. § 196.011. Agency Fee: $0 Law: Chapter 212, Florida Statutes Notes: Certain not-for-profit organizations are exempt from sales and use tax on purchases and rentals of tangible personal property if that property is used in carrying out the organization's not-for-profit activities. See the form for information on the available exemptions.
Georgia Simply attach your IRS Determination Letter and Letter of Incorporation to your tax returns. "Effective for tax years beginning on or after January 1, 2008, Form 3605 will no longer be required. Attach the IRS Determination Letter and Letter of Incorporation to the tax return." All places of religious worship. (B) All property owned by and operated exclusively as a church, an association or convention of churches, a convention mission agency, or as an integrated auxiliary of a church or convention or association of churches, when such entity is qualified as an exempt religious organization under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, and such property is used in a manner consistent with such exemption under Section 501(c)(3) of the Internal Revenue Code of 1986, as amended; (3) All property owned by religious groups and used only for single-family residences when no income is derived from the property. No relevant exemptions found Georgia currently does not provide a general sales or use tax exemption. A few exemptions exist for nursing homes, hospices, hospitals, and other organizations, and you can contact the Georgia Department of Revenue for a full list.
Hawaii NOT REQUIRED Your IRS determination letter granting exemption from federal income taxes, also exempts your organization from Hawaii income taxes. Organizations that are not required to file an application for recognition of exemption with the IRS are exempt from Hawaii income taxes. Further, Section 246-32 of the real property tax law, Chapter 246, HRS, as amended, provides that property used for church purposes, including incidental activities, parsonages and church grounds shall be exempt from the real property tax. Therefore, the operation of a pre-school or a day-care center by a church as part of its religious and educational activities on a nonprofit basis shall be deemed to be an incidental activity of the church for real property tax purposes. Accordingly, such property used for this activity shall also be exempt from the real property tax as property used for church purposes under Section 246-32, Chapter 246, HRS, as amended. Religious organizations are exempt from certain registrations and financial disclosures in order to engage in charitable solicitation. Haw. Rev. Stat. § 467B-11.5. General Excise Tax Exemption: Agency: Hawaii Department of Taxation Agency Fee: $20 unless you already have a Hawaii GET tax ID number. Notes: Hawaii does not have sales tax; instead, it has general excise tax (GET).Hawaii does not have sales tax; instead, it has general excise tax (GET).
Idaho NOT REQUIRED If the IRS grants the exempt status, your organization will also be exempt from Idaho income tax, except for tax due on unrelated business income. 63-602B. PROPERTY EXEMPT FROM TAXATION -- RELIGIOUS LIMITED LIABILITY COMPANIES, CORPORATIONS OR SOCIETIES. (1) The following property is exempt from taxation: property belonging to any religious limited liability company, corporation or society of this state, used exclusively for and in connection with any combination of religious, educational, or recreational purposes or activities of such religious limited liability company, corporation or society, including any and all residences used for or in furtherance of such purposes. (2) If the entirety of any property belonging to any such religious limited liability company, corporation or society is leased by such owner, or if such religious limited liability company, corporation or society uses the entirety of such property for business or commercial purposes from which a revenue is derived, then the same shall be assessed and taxed as any other property. If any such property is leased in part or used in part by such religious limited liability company, corporation or society for such business or commercial purposes, the assessor shall determine the value of the entire exempt property, and the value of the part used or leased for such business or commercial purposes, and that part used or leased for such business or commercial purposes shall be taxed as any other property. No relevant exemptions found Agency: Idaho State Tax Commission Notes: Currently, most Idaho nonprofit organizations must pay and collect sales tax. For a list of exempt organizations, visit Idaho Tax Commission Brochure #50: Nonprofit Groups & Churches.
Illinois NOT REQUIRED If your corporation receives a federal tax exemption, it is exempt from Illinois income tax. No reports need to be filed and no tax is due. All property used exclusively for religious purposes, or used exclusively for school and religious purposes, or for orphanages and not leased or otherwise use with a view to a profit, is exempt, including all such property owned by churches or religious institutions or denominations and use in conjunction therewith as housing facilities provided for ministers … performing the duties of the vocation as ministers at such churches or religious institutions or for such religious denominations. Illinois Constitution Article IX, Section 6 provides that "®he General Assembly by law may exempt from taxation only...property used exclusively for...religious, cemetery and charitable purposes." Religious organizations are not automatically exempt; a religious organization must contact the Office of the Illinois Attorney General’s Charitable Trust Bureau to register as required under the Illinois Charitable Organization Laws prior to any solicitation or holding of charitable assets. Further, exemption from sales tax is obtained by application to the Illinois Department of Revenue, Sales Tax Exemption Section. Sales Tax: Agency: Illinois Department of Revenue Agency Fee: $0
Indiana Agency: Indiana Department of Revenue Agency Fee: $0 Notes: Attach your IRS Determination Letter. This application is due within 120 days of incorporation. The department will return a Nonprofit Tax Registration Certificate and you can use Form ST-105: General Sales Tax Exemption Certificate to provide your exemption information to sellers. Sec. 21. (a) The following tangible property is exempt from property taxation if it is owned by, or held in trust for the use of, a church or religious society: (1) A building that is used for religious worship. (2) The pews and furniture contained within a building that is used for religious worship. (3) The tract of land upon which a building that is used for religious worship is situated. (b) The following tangible property is exempt from property taxation if it is owned by, or held in trust for the use of, a church or religious society: (1) A building that is used as a parsonage. (2) The tract of land, not exceeding fifteen (15) acres, upon which a building that is used as a parsonage is situated. (c) To obtain an exemption for parsonages, a church or religious society must provide the county assessor with an affidavit at the time the church or religious society applies for the exemptions. The affidavit must state that: (1) all parsonages are being used to house one (1) of the church's or religious society's rabbis, priests, preachers, ministers, or pastors; and (2) none of the parsonages are being used to make a profit. The affidavit shall be signed under oath by the church's or religious society's head rabbi, priest, preacher, minister, or pastor. The code provides for certain types of religious property that is exempt from taxation. To obtain exemption for parsonages, the religious organization must provide the county assessor with an affidavit. Ind. Code Ann. § 6-1.1-10-21. For certain property owned/used by religious organizations, the state does not require the religious organization to file an exemption application. Ind. Code Ann. § 6-1.1-11-4. Agency: Indiana Department of Revenue Agency Fee: $0 Notes: This form is due within 120 days of incorporation, and you must attach your IRS determination letter.
Iowa NOT REQUIRED Your nonprofit is automatically exempt from Iowa income tax when you receive IRS income tax exemption. An exempt entity does not have to file an Iowa corporation income tax return unless it has unrelated business income. Unrelated business income is taxable at the regular Iowa corporation income tax rates to the same extent it is taxable at the federal level. The exempt entity may also be subject to the Iowa alternative minimum tax. To report unrelated business income, file Iowa form 1120. Complete form IA 4626 if subject to the alternative minimum tax. Iowa estimated tax payments must be made if an income tax liability of $1,000 or more is anticipated. Iowa law allows religious and charitably owned property to be full exempt from taxes. In order for the property to be exempt, it must be solely used for religious or charitable purposes. No relevant exemptions found NOT REQUIRED Iowa nonprofits receive limited exemption from sales tax. Sales made to nonprofits are not exempt from sales and use tax. The exception is private nonprofit schools do not pay sales tax on the purchase of goods and taxable services used for educational purposes. Also, sales made by educational, religious, or charitable organizations are exempt on proceeds expended for qualifying educational, religious, or charitable purposes.
Kansas NOT REQUIRED Your nonprofit is automatically exempt from Kansas income tax when you receive IRS income tax exemption. All real property, and all tangible personal property, actually and regularly used exclusively for literary, educational, scientific, religious, benevolent or charitable purposes, including property used exclusively for such purposes by more than one agency or organization for one or more of such exempt purposes. K.S.A. § 17-1701 et seq. governs religious charitable organizations. Sales and Use Tax Exemption: Agency: Kansas Department of Revenue Agency Fee: $0 Notes: Not all 501(c)(3) organizations are eligible for exemption. Use the online system to file for exemption.
Kentucky NOT REQUIRED Your nonprofit is automatically exempt from Kentucky corporate income tax when you receive IRS income tax exemption. According to Section 170 of the Kentucky Constitution, real property owned and occupied by, and personal property owned by institutions of religion are exempt from taxation. Additionally, real property owned by institutions of purely public charity is exempt from taxation. Religious organizations do not need to report regarding charitable contributions relating to disasters. Ky. Rev. Stat. Ann. § 273.470. Sales & Use Tax Exemption: Agency: Kentucky Department of Revenue Agency Fee: $0 Notes: Include a copy of your articles of incorporation and IRS Determination Letter.
Louisiana Agency: Louisiana Department of Revenue Original Ink: Not required Notarize: Not required Notes: To obtain exemption from Louisiana corporate income tax, simply submit your IRS Determination Letter to the Louisiana Department of Revenue. Property owned by a nonprofit organization and operated exclusively for charitable, religious, educational, health, welfare, or fraternal purposes is exempt from property taxes. Religious institutions are not required to register with regards to charitable solicitations. LA Admin. Code section 515(c). Agency: Louisiana Department of Revenue Agency Fee: $0 Original Ink: Not required Notarize: Not required Notes: In general, Louisiana nonprofits are not exempt from sales and use tax. You can request an exemption for a fundraiser by filing an exemption application at least 2 weeks prior to the event.
Maine NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Maine corporate income tax. No application or notification is necessary. Houses of religious worship, including vestries, and the pews and furniture within them; tombs and rights of burial; and property owned and used by a religious society as a parsonage up to the just value of $20,000, and personal property not exceeding $6,000 in just value are exempt from taxation, except that any portion of a parsonage that is rented is subject to taxation. For purposes of this paragraph, "parsonage" means the principal residence provided by a religious society for its cleric whether or not the principal residence is located within the same municipality as the house of religious worship where the cleric regularly conducts religious services. [PL 2023, c. 360, Pt. A, §6 (AMD).] Chapter 93 governs religious societies in the state. ME ST T. 13, Pt. 2, Ch. 93, Refs & Annos. Religious, charitable, educational and benevolent organizations do not file annual reports with the Secretary of State. Me. Rev. Stat. tit. 13-C, § 1621. Agency: Maine Revenue Services Form: Find the form for your type of organization Notes: Maine has a large number of sales tax exemptions, and you will file a form specific to your type of organization.
Maryland Agency: Comptroller of Maryland Agency Fee: $0 Notes: Submit: Request for exemption from Maryland income tax, an explanation of the nature, purpose, and scope of your organization, IRS tax determination letter, by-laws, and latest financial statement of your organization. What property owned by a “religious group or organization” is not subject to property tax? The property is exempt if it is “actually used exclusively for” one of three purposes: (1) public religious workshop; (2) a parsonage or convent; or (3) educational purposes. Title 5, Subtitle 3 of Corporations and Associations specifically governs religious corporations. Religious organizations must file articles of incorporation. Md. Code Ann. Corps. & Ass'ns. §5-304, 312. Agency: Comptroller of Maryland Agency Fee: $0 Notes: Must have IRS tax determination letter first.
Massachusetts Agency: Massachusetts Department of Revenue Agency Fee: $0 Notes: Submit: Registration (if not already registered), a copy of the IRS Determination Letter of Exemption granting the corporation Section 501 (c) status, a copy of the Articles of Organization filed with the Secretary of State's Office, and a copy of the IRS documentation of Employer Federal Identification Number if it is not stated on the IRS Section 501 (c) Determination Letter. The following property of a religious organization is exempt from local property taxes: 1) The personal property (a) owned by or (b) held in trust within Massachusetts by a religious organization of any denomination if the principal or income is used for religious or charitable purposes. G.L. c. 59, § 5, Clause 10. Religious organizations are subject to the same requirements as all other nonprofit corporations under the Nonprofit Corporation Act. Mich. Comp. Laws Ann. § 450.2123. Mich. Comp. Laws Ann. Ch. 458 There is no application form for sales tax exemption; simply send in your IRS determination letter with an explanation and the department will review the request.
Michigan NOT REQUIRED Nonprofits are exempt from Michigan's 6% Michigan Corporate Income Tax (CIT). No filing is needed. Houses of public worship, with the land on which they stand, the furniture therein and all rights in the pews, and any parsonage owned by a religious society of this state and occupied as a parsonage are exempt from taxation under this act. Religious organizations are subject to the same requirements as all other nonprofit corporations under the Nonprofit Corporation Act. Mich. Comp. Laws Ann. § 450.2123. Mich. Comp. Laws Ann. Ch. 458 governs ecclesiastical societies. NOT REQUIRED Michigan nonprofits are automatically exempt from state sales and use tax. Simply complete and present Form 3372: Michigan Sales and Use Tax Certificate of Exemption to sellers and vendors.
Minnesota NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Minnesota corporate income taxes. No application or notification is necessary. However, Article X Section 1 of the Minnesota Constitution identifies that churches and houses of worship are constitutionally exempt from real property taxes – notwithstanding any statute(s) to the contrary. For churches and houses of worship, and property solely used for educational purposes by academies, colleges, universities, or seminaries of learning, no exemption statement is required regarding property taxes after the statement filed for the assessment year in which the exemption began. Minn. Stat. Ann. § 272.025. Churches and houses of worship are exempt from solicitation reporting and annual reports. § 309.515(b). Sales Tax Exemption: Agency: Minnesota Department of Revenue Agency Fee: $0
Mississippi Agency: Mississippi Department of Revenue Notes: Certain nonprofit corporations qualify for tax-exempt status under Mississippi law. To apply for exemption from Corporate and Franchise taxes, submit your IRS determination letter to the Mississippi Department of Revenue. 20-285, Nonprofit, Religious, Charitable, Scientific, and Educational Organizations Property belonging to a religious, ecclesiastical, charitable, historical, patriotic, garden, or pilgrimage organization that is used exclusively for nonprofit organization purposes is tax-exempt. ( Miss Code Ann Sec. 27-31-1) Also exempt is property used exclusively as a nursing home or to provide housing or services to the elderly, disabled, or mentally impaired. A nursing home qualifies for the exemption if it is owned and operated by a nonprofit corporation whose membership or governing body is appointed or confirmed by a religious society. Religious societies must make annual filings. Miss. Code Ann. § 79-11- 47. Churches are not exempt from sales tax; however, churches are exempt from Mississippi sales tax on utilities and use tax on purchases of religious literature. For more information on tax treatment for churches in Mississippi, please see our MDOR Churches Fact Sheet.
Missouri NOT REQUIRED Missouri nonprofits that file IRS Form 990 are exempt from Missouri corporation income tax. General Rule Under Missouri law, the following property may be exempt: 1) Property owned by the State or other political subdivision such as city, county, public water district, etc... 2) Agricultural and Horticultural societies and non-profit cemeteries. 3) Property used exclusively for religious worship. No relevant exemptions found Generally, Missouri taxes all retail sales of tangible personal property and certain taxable services. However, there are a number of exemptions and exclusions from Missouri's sales and use tax laws. Although exemptions and exclusions both result in an item not being taxed, they operate differently. Exemptions: Exemptions are specific provisions of law eliminating the tax due on an item ordinarily subject to tax. Exemptions represent a legislative decision that a taxable item should not be taxed in certain instances.
Montana Agency: Montana Department of Revenue Agency Fee: $0 Notes: Montana nonprofits may apply for exemption from Montana's Corporation License Tax (6.75%) after receiving their IRS Determination Letter. Governmental, charitable, and educational categories -- exempt property. (1) The following categories of property are exempt from taxation: (b) buildings and furnishings in the buildings that are owned by a church and used for actual religious worship or for residences of the clergy, not to exceed one residence for each member of the clergy, together with the land that the buildings occupy and adjacent land reasonably necessary for convenient use of the buildings, which must be identified in the application, and all land and improvements used for educational or youth recreational activities if the facilities are generally available for use by the general public but may not exceed 15 acres for a church or 1 acre for a clergy residence after subtracting any area required by zoning, building codes, or subdivision requirements; (c) land and improvements upon the land, not to exceed 15 acres, owned by a federally recognized Indian tribe when the land has been set aside by tribal resolution and designated as sacred land to be used exclusively for religious purposes; Religious organizations must make annual filings. Mont. Code Ann. § 35-3-209. NOT REQUIRED Montana does not currently have a state level sales tax.
Nebraska NOT REQUIRED If you have 501(c) exemption, you are automatically exempt from Nebraska income tax. If you have unrelated business income you need to file Nebraska corporate income taxes. Property owned and used exclusively for religious or charitable purposes and not owned or used for financial gain or profit is exempt from taxation. All nonprofits must file the biennial reports. Neb. Rev. Stat. § 21- 19,172 Agency: Nebraska Department of Revenue Agency Fee: $0 Notes: Not all nonprofits are eligible for exemption.
Nevada Agency: Nevada Department of Taxation Agency Fee: $0 Notes: The State of Nevada does not levy a state personal, business or corporate income tax, but does levy a privilege tax. NV Rev Stat § 361.125 (2022) 1. Except as otherwise provided in subsection 2: (a) Churches, chapels, other than marriage chapels, and other buildings used for religious worship, with their furniture and equipment, and the lots of ground on which they stand, used therewith and necessary thereto; and (b) Parcels of land used exclusively for worship, including, without limitation, both developed and undeveloped portions of a parcel, owned by some recognized religious society or corporation, and parsonages so owned, are exempt from taxation. Religious institutions must file for tax exemptions. Nev. Rev. Stat. Ann. §§ 374.353; 372.348. Nevada Revised Statute (NRS) 372.326 provides for an exemption from Sales/Use Tax for non-profit organizations created for religious, charitable, or educational purposes, however, organizations must apply for, and receive approval for exempt entity status by the Department of Taxation.
New Hampshire NOT REQUIRED If the IRS Determination Letter grants 501(c) recognition, then your organization is also exempt from New Hampshire corporate income tax (the "New Hampshire Business Profits Tax"). A non-profit organization whose mission is of a religious, educational or charitable nature, may qualify for a property tax exemption. The property must be owned, used and occupied by the organization (RSA 72:23) as of April 1 of the year the application is made. Unincorporated societies or lodges of fraternal organizations shall be corporations so far as may be necessary to take, hold, manage and use any gift or grant made to them as such and any gifts or grants heretofore made. N.H. Rev. Stat. Ann. § 292:12. If a donation, grant or gift be made to any unincorporated association, society, foundation or similar organization, it shall be a corporation so far as may be necessary to take, hold, manage, use and convey any such donation, gift or grant made to it. N.H. Rev. Stat. Ann. § 292:14. NOT REQUIRED New Hampshire does not currently have a state level sales tax.
New Jersey NOT REQUIRED If a nonprofit organization is incorporated and operating as a nonprofit corporation, it is exempt from the New Jersey Corporation Business Tax. You may request a letter from the Division of Taxation confirming exemption from corporation business tax. It further protects property tax exemptions for property “used exclusively for religious, educational, charitable or cemetery purposes, as defined by law, and owned by any corporation or association organized and conducted exclusively for one or more of such purposes and not operating for profit.” Every non-profit corporation must file an annual report with the Secretary of State. N.J. Stat. Ann. § 15A:4-5. Agency: New Jersey Department of the Treasury - Division of Taxation Agency Fee: $0
New Mexico NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is exempt from New Mexico corporate income tax and franchise tax. NM Const art VIII § 3 The property of the United States, the state and all counties, towns, cities and school districts and other municipal corporations, public libraries, community ditches and all laterals thereof, all church property not used for commercial purposes, all property used for educational or charitable purposes, all cemeteries not used or held for private or corporate profit and all bonds of the state of New Mexico, and of the counties, municipalities and districts thereof shall be exempt from taxation. Religious organizations are exempt from the Charitable Solicitations Act. N.M. Stat. Ann. § 57-22-4. Gross Receipts Tax Exemption: NOT REQUIRED If your IRS determination letter stipulates that your nonprofit is an educational or social organization, you are automatically exempt from New Mexico’s gross receipts tax. If you purchase taxable goods, you can apply for a Nontaxable Transaction Certificate (NTTC). You will file Form ACD-31050: Application for Nontaxable Transaction Certificates with the New Mexico Department of Taxation and Revenue.
New York Agency: New York State Department of Taxation and Finance Agency Fee: $0 Notes: Certain not-for-profit and religious corporations are exempt from the New York State corporation franchise tax. You must file Form CT-247 to apply for exemption. The types of properties which may be eligible include properties that: are used for religious services. are residential and owned by the religious organization to house the officiating clergy. are residential and used as a school dormitory or hospital staff housing. New York Constitution Article XVI, Section 1 exempts from taxation real or personal property used exclusively for religious, educational or charitable purposes. Churches are not automatically exempt, and must apply for exemption from New York sales tax with Form ST119.2. See N.Y. Tax. Law § 1116(a)(4); New York State Department of Taxation and Finance Publication 843. Certain nonprofit and religious corporations are exempt from the New York State corporation franchise tax imposed by Tax Law Article 9-A. See New York Tax Law Article 9‑A regulations, section 1‑3.4(b)(6). Agency: New York State Department of Taxation and Finance Instructions: Instructions for Form ST-119.2 and NYS Dept. of Taxation and Finance - Sales tax exempt organizations Agency Fee: $0
North Carolina Agency: North Carolina Department of Revenue Agency Fee: $0 Notes: Send your Articles of Incorporation, Bylaws, and other organizational documents along with your IRS Determination letter to the Department of Revenue. § 105-278.3. Real and personal property used for religious purposes. (a) Buildings, the land they actually occupy, and additional adjacent land reasonably necessary for the convenient use of any such building shall be exempted from taxation if wholly owned by an agency listed in subsection (c), below, and if: (1) Wholly and exclusively used by its owner for religious purposes as defined in subsection (d)(1), below; or (2) Occupied gratuitously by one other than the owner and wholly and exclusively used by the occupant for religious, charitable, or nonprofit educational, literary, scientific, or cultural purposes. (b) Personal property shall be exempted from taxation if wholly owned by an agency listed in subsection (c), below, and if: (1) Wholly and exclusively used by its owner for religious purposes; or (2) Gratuitously made available to one other than the owner and wholly and exclusively used by the possessor for religious, charitable, or nonprofit educational, literary, scientific, or cultural purposes. (c) The following agencies, when the other requirements of this section are met, may obtain exemption for their properties: (1) A congregation, parish, mission, or similar local unit of a church or religious body; or (2) A conference, association, presbytery, diocese, district, synod, or similar unit comprising local units of a church or religious body. (d) Within the meaning of this section: (1) A religious purpose is one that pertains to practicing, teaching, and setting forth a religion. Although worship is the most common religious purpose, the term encompasses other activities that demonstrate and further the beliefs and objectives of a given church or religious body. Within the meaning of this section, the ownership and maintenance of a general or promotional office or headquarters by an owner listed in subdivision (2) of subsection (c), above, is a religious purpose and the ownership and maintenance of residences for clergy, rabbis, priests or nuns assigned to or serving a congregation, parish, mission or similar local unit, or a conference, association, presbytery, diocese, district, synod, province or similar unit of a church or religious body or residences for clergy on furlough or unassigned, is also a religious purpose. However, the ownership and maintenance of residences for other employees is not a religious purpose for either a local unit of a church or a religious body or a conference, association, presbytery, diocese, district, synod, or similar unit of a church or religious body. Provided, however, that where part of property which otherwise qualifies for the exemption provided herein is made available as a residence for an individual who provides guardian, janitorial and custodial services for such property, or who oversees and supervises qualifying activities upon and in connection with said property, the entire property shall be considered as wholly and exclusively used for a religious purpose. No relevant exemptions found NOT REQUIRED North Carolina currently does not offer an exemption from sales tax. However, the state offers semiannual refunds for qualified organizations. You will file Form E585: Nonprofit and Governmental Entity Claim for Refund with the North Carolina Department of Revenue.
North Dakota NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is automatically exempt from North Dakota corporate income tax. No application or notification is necessary. All real property owned by any religious corporation or organization and used as a parking lot by persons attending religious services is exempt from taxation. All taxes assessed or levied on any of the property, while the property is used for religious purposes, are void. Religious organizations exempt from certain Internal Revenue Code filings are exempt from filings in order to engage in charitable solicitation. N.D. Cent. Code Ann. § 50-22-01. NOT REQUIRED North Dakota law does not exempt religious, charitable, or non-profit organizations. Purchases made by churches are subject to tax; however, bibles, prayer books, hymnals and religious textbooks purchased by churches are exempt by state statute.
Ohio NOT REQUIRED Generally, nonprofit corporations are not subject to the Ohio commercial activity tax. Agricultural and consumer cooperatives are. Ohio law provides that real property owned by non-profit institutions which is used exclusively for charitable, public or educational purposes is exempt from taxation. Religious organizations do not have to file a registration statement in order to engage in charitable solicitation. Ohio Rev. Code Ann. § 1716.03 See chapter on Religious and Benevolent Organizations: OH ST Title XVII, Ch. 1715 NOT REQUIRED Ohio nonprofits that have received their IRS determination letter are automatically exempt from paying state sales tax. Some entities may not have an exclusively charitable purpose. The code specifically lists sales of tangible personal property or services to churches, organizations under 501 (c)(3) of the internal Revenue Code, and any other nonprofit organizations operated exclusively for charitable purposes in this state are exempt.
Oklahoma NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Oklahoma corporate income tax. No application or notification is necessary. Properties of fraternal, religious and charitable institutions may be entitled to ad valorem tax exemptions on all or part of their property pursuant to Art. 10, § 6 Oklahoma Constitution and Oklahoma Statute Title 68 § 2887. Religious organizations do not have to file a registration statement in order to engage in charitable solicitation. Okla. Stat. Ann. Tit. 18 § 552.3. Agency: Oklahoma Tax Commission Agency Fee: $0 Notes: Not all 501(c) recognized nonprofits are exempt from sales tax. There are a number of specific exemptions that exist.
Oregon NOT REQUIRED If you are an exempt organization under Internal Revenue Code (IRC) Sections 501(c) through (f), 501(j), 501(n), 521, or 529, you are exempt from Oregon Corporation taxes (ORS 317.080). You don't have to apply to the Oregon Department of Revenue. Two exceptions to this are nonprofit homes for the elderly and people's utility districts. To qualify for the property tax exemption, the religious organization must have a constitution, bylaws, or charter which states its mission and purpose. An individual cannot qualify. Property may include: Houses of public worship. Religious organizations that hold property for religious purposes are exempt from registration required for other charitable organizations. Or. Rev. Stat. Ann. § 128.640. Religious organizations do not appear to be exempt from filing a claim with the county assessor in order to claim a property tax exemption. Or. Rev. Stat. Ann. § 307.162. NOT REQUIRED Oregon does not currently have a state level sales tax.
Pennsylvania NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Pennsylvania corporate income tax. No application or notification is necessary. The following property shall be exempt from all county, city, borough, town, township, road, poor, county institution district and school real estate taxes: (1) All churches, meetinghouses or other actual places of regularly stated religious worship, with the ground annexed necessary for their occupancy and use. Pennsylvania Constitution Article VIII, Section 2(a)(i) exempts from property taxation "places of religious worship." Pennsylvania religious organizations are not automatically exempt; a religious organization seeking exemption from Pennsylvania sales tax must apply to the Pennsylvania Department of Revenue. Agency: Pennsylvania Department of Revenue Agency Fee: $0 Due: Once every five years. Approximately 2 months before an organization's sales tax exemption expires, the Department of Revenue will send a renewal packet to the organization.
Rhode Island NOT REQUIRED When you receive your IRS Determination Letter granting federal income tax exemption (and file IRS Form 990 or 990EZ annually), you are automatically also granted exemption from Rhode Island corporate income tax. You need not apply or notify the Rhode Island Division of Taxation. § 44-3-3. Property exempt. (a) The following property is exempt from taxation: 5) Buildings for free public schools, buildings for religious worship, and the land upon which they stand and immediately surrounding them, to an extent not exceeding five (5) acres so far as the buildings and land are occupied and used exclusively for religious or educational purposes; (6) Dwellings houses and the land on which they stand, not exceeding one acre in size, or the minimum lot size for zone in which the dwelling house is located, whichever is the greater, owned by, or held in trust for, any religious organization and actually used by its officiating clergy; provided, further, that in the town of Charlestown, where the property previously described in this paragraph is exempt in total, along with dwelling houses and the land on which they stand in Charlestown, not exceeding one acre in size, or the minimum lot size for zone in which the dwelling house is located, whichever is the greater, owned by, or held in trust for, any religious organization and actually used by its officiating clergy, or used as a convent, nunnery, or retreat center by its religious order; (7) Intangible personal property owned by, or held in trust for, any religious or charitable organization, if the principal or income is used or appropriated for religious or charitable purposes No relevant exemptions found Sales & Use Tax Exemption: Agency: Rhode Island Department of Revenue - Division of Taxation Agency Fee: $25
South Carolina NOT REQUIRED When you receive your IRS Determination Letter granting recognition of exemption, you are also exempt from South Carolina corporate income tax. The total properties for which the religious, charitable, or eleemosynary society, corporation, trust, or other association may claim this exemption in accordance with this paragraph may not exceed fifty acres per county within the State. A public benefit or religious corporation will not be automatically exempt from federal or state income tax. If income tax exemption is desired, the articles should limit the purpose and powers of the corporation and irrevocably dedicate its assets to tax exempt purposes as required by tax laws, especially regulations adopted under Internal Revenue Code Section 501(c)(3). S.C. Code Ann. § 33- 31-202. Agency: South Carolina Department of Revenue Agency Fee: $0 Notes: Certain nonprofit organizations in South Carolina are exempt from sales and use tax on items sold by the organizations for charitable purposes. The exemption applies only to items purchased for resale and does not apply to items purchased by an organization for its own use.
South Dakota NOT REQUIRED South Dakota does not have a state or corporate income tax. Codified Law 10-4-9 | South Dakota Legislature. 10-4-9. Property owned by religious society and used exclusively for religious purposes exempt--Sale of property by religious society. Property owned by any religious society and used exclusively for religious purposes, is exempt from taxation. In order to be exempt from property tax, if a structure is used exclusively for religious purposes or a cemetery is granted taxexempt status then it does not need to file the annual statement that must be filed on behalf of other properties exempt from property tax. However, if the use or ownership of the property changes, the owner must reapply for tax-exempt status. S.D. Codified Laws § 10-4- 19. Agency: South Dakota Department of Revenue Agency Fee: $0 Notes: Only certain organizations are eligible to apply for a sales tax exempt permit.
Tennessee NOT REQUIRED Franchise and excise taxes are not applicable to nonprofit corporations as defined by law. The Application for Exemption - Franchise and Excise Taxes form is for other exemptions. Many churches and other religious organizations believe they are automatically exempt from property taxation. However, Tennessee State law requires churches and other qualifying non-profit groups to file for property-tax exemption for each piece of property they acquire. Religious corporations are exempt from the following Sections: Tenn. Code Ann. § 48-56-202 (forbidding transfers of membership), § 48- 56-302 (forbidding termination of membership without cause), Tenn. Code Ann. § 48-58-110(d) (requiring notice of proceeding by public benefit corporation or its members against attorney general and reporter), Tenn. Code Ann. § 48-58-303 (forbidding loans to directors and officers), and Tenn. Code Ann. § 48-64-303 (permitting appointment of receiver or custodian under certain circumstances). Agency: Tennessee Department of Revenue Agency Fee: $0 Notes: Exemption certificates are only issued to Tennessee nonprofits. Out-of-state nonprofits should instead present their IRS determination letter to vendors.
Texas Texas state law permits 501(c)(3) exempt and various other types of organizations to be exempt from paying sales tax, hotel occupancy tax, and franchise tax. Agency Fee: $0 For a religious organization to receive a state tax exemption, it must be an organized, established group of people regularly meeting at a designated location to hold religious worship services. Religious groups do not need a federal tax exemption to qualify for Texas state tax exemptions. Churches in Texas are not automatically exempt. Churches must apply to the Texas Comptroller to request exemption from Texas sales tax, hotel occupancy tax and franchise tax. See Texas Tax Code Sections 151.310, 156.102 and 171.058; Texas Comptroller’s Rules 3.322, 3.161, 3.541 and 3.583. Texas Constitution, Article 8, Section 2 exempts from property taxation "actual places of religious worship, also any property owned by a church or by a strictly religious society for the exclusive use as a dwelling place for the ministry of such church or religious society." Religious organizations may apply for a property tax determination letter from their local tax appraisal district pursuant to Texas Tax Code Section 11.20. For a religious organization to receive a state tax exemption, it must be an organized, established group of people regularly meeting at a designated location to hold religious worship services. Religious groups do not need a federal tax exemption to qualify for Texas state tax exemptions. Organizations that simply support and encourage religion as an incidental part of their overall purpose, promote religious work or teach religious understanding do not qualify for exempt status. These include evangelistic groups, Bible study groups, prayer groups and revivals.
Utah Agency: Utah State Tax Commission Agency Fee: $0 59-2-1101(1)(c) any property owned by a nonprofit organization that is used exclusively for a charitable, educational, or religious purpose may be eligible for exemption from property tax. Qualification for an exemption is contiquent upon ownership AND use. Automatically exempt. Utah Code § 59-7-102. Agency: Utah State Tax Commission Agency Fee: $0
Vermont NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Vermont minimum corporate tax. No application or notification is necessary. If a property's primary use is for public, pious, or charitable use, it may be exempt from state property taxes under Vermont law 32 V.S.A. § 3802(4). No relevant exemptions found NOT REQUIRED Vermont nonprofits that have received their IRS determination letter are automatically exempt from paying state sales tax. They must present Form S-3: Vermont Sales Tax Exemption Certificate for Resale and Exempt Organizations to sellers.
Virginia NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Virginia corporation income tax. No application or notification is necessary. Virginia law authorizes tax exemption on real and personal property owned by churches or religious bodies and exclusively occupied or used for religious worship or for the residence of its minister and such additional adjacent land reasonably necessary for the exempt use. No relevant exemptions found Agency: Virginia Department of Taxation Agency Fee: $0
Washington In Washington, nonprofit organizations are generally taxed like any other business. They must pay business and occupation (B&O) tax on gross revenues generated from regular business activities they conduct. They must pay sales tax on all goods and retail services they purchase as consumers, such as supplies, lodging, equipment, and construction services. In addition, nonprofit organizations must collect and remit retail sales tax on their sales of goods and retail services. The exemption applies to real and personal property owned by the church and used exclusively for religious worship and related church purposes. A maximum of five acres of real property is eligible for exemption. This maximum acreage may include a parsonage, convent, caretaker's residence, and parking. All nonprofit organizations that conduct taxable business activities in Washington must register. Currently, Washington does not grant nonprofits exemption from state sales tax. They must pay sales tax on all goods and retail services they purchase as consumers, such as supplies, lodging, equipment, and construction services. In addition, nonprofit organizations must collect and remit retail sales tax on their sales of goods and retail services. Limited B&O and sales tax exemptions are provided for nonprofit fundraising activities, donations, and for certain types of organizations.
West Virginia Any corporation exempt from federal income tax is also exempt from West Virginia Corporation Net Income Tax and Business Franchise Tax. Nevertheless, a tax exempt organization's annual West Virginia Corporation Net Income/Business Franchise Tax Return is due on or before the 15th day of the fifth month after the close of the taxable year. 12.1. Section '11-3-9 of the West Virginia Code exempts from ad valorem property tax only that property which is used exclusively for divine worship. Property will not be exempt from ad valorem property tax as "property used exclusively for divine worship" if it is used for any other purpose. Churches and religious organizations not required to file a registration statement with the Secretary of State. W. Va. Code Ann. § 29-19-6. Agency Fee: $0 Notes: West Virginia uses a multi-state form that is not actually submitted with the West Virginia State Tax Department. West Virginia nonprofits should complete the form and display to sellers, but out-of-state nonprofits are generally allowed to use exemption certificates from another state. The form is rather complex, and not accepted in all states. Be sure to read the instructions carefully.
Wisconsin NOT REQUIRED Upon obtaining your IRS Determination Letter, your organization is automatically exempt from Wisconsin corporation franchise and income taxes. No application or notification is necessary. Leasing all or part of property described in par. (a) that is owned by a church or religious association or institution to an educational association or institution exempt under par. (a) does not render the property taxable, regardless of how the lessor uses the leasehold income. (4a) Benevolent low-income housing. No relevant exemptions found Some customers are exempt from paying sales tax under Wisconsin law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
Wyoming NOT REQUIRED Wyoming does not levy a corporate income tax. Section 14-7 - Church property - W.S. 39-11-105(a)(vii) (a) The word "exclusively" shall not be construed so narrowly and literally that it defeats the purpose of the exemption. Any use, however, other than one qualifying as religious worship under the statute must be de minimis (truly minor). As an example, the receipt of pay for temporary use of church property, when not needed or desired for religious services, is minor and will not affect the exemption. (b) The real property exemption for religious worship, church schools and church parsonages, includes land around such institutions reasonably necessary for convenient ingress and egress, light, air, or appropriate ornament. However, lots adjacent to a church building which are not reasonably needed for the convenient enjoyment of the building as a church are not exempt. (c) Property used for religious worship together with other multiple uses including educational, commercial, social or charitable, is not exempt. (Kings Ranch, #85-4) (d) A "church school" is one operated under the auspices or control of a local church, religious congregation, or denomination established to promote and promulgate the commonly held religious doctrines of the group, though it may also include basic academic subjects in its curriculum. (e) The assessor may consider evidence of sales/use tax exemption as a qualified religious organization granted by the State pursuant to W.S. 39-15-105(a)(iv)(B). 011-14 Wyo. Code R. § 14-7 Amended, Eff. 4/7/2015. Automatically exempt. Wyo. Stat. Ann. §§ 39-11-105, 39-15-105. To become exempt from Wyoming sales tax, simply submit your IRS Determination Letter to the Wyoming Department of Revenue. Alternatively, submit articles of incorporation, constitution or bylaws, mission statement, budget, and income/expense statement for the past three years. When the Wyoming Department of Revenue approves your exemption, they will send you a Streamlined Sales/Use Tax Agreement (SSUTA) Certificate of Exemption.
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“The I.R.S. examined 1.4 million individual income tax returns in 2010, about 1 percent of the total number filed. In 2018, the latest year with available data when Republicans started making these claims, audits decreased to 370,000, or about 0.2 percent… The budget office estimated increasing I.R.S. funding would return enforcement to its 2010 levels. Doing so would result in about 1.2 million more audits; of those, 583,000 would target people making less than $75,000.”

The New York Times, “Fact-Checking the Misleading Claim About 87,000 Tax Agents”, November 6, 2022

“…For example, you educate believers on national issues that are central to their belief in the Bible as the inerrant Word of God. Specifically, you educate Christians on what the bible says in areas where they can be instrumental including the areas of sanctity of life, the definition of marriage, biblical justice, freedom of speech, defense, and borders and immigration, U.S. and Israel relations. The bible teachings are typically affiliated with the Republican party and candidates. This disqualifies you from exemption under IRC Section 501(c)(3).”

Stephen A. Martin, IRS Director, Exempt Organizations, Rulings and Agreements

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