A church tax is a tax collected by the state from members of some religiousdenominations to provide financial support of churches, such as the salaries of its clergy and to pay the operating cost of the church. Not all countries have such a tax. In some countries that do, people who are not members of a religious community are exempt from the tax; in others it is always levied, with the payer often entitled to choose who receives it, typically the state or an activity of social interest.
The constitution of a number of countries could be and have been interpreted as both supporting and prohibiting the levying of taxes unto churches; prohibiting church tax could separate church and state fiscally, but it could also be favorable treatment by the government.[1] The term "church tax" could mean a tax levied on a religious organisation by a state, or relate to tax exemptions and so on for churches, but this article is about a tax levied on individuals.
In the past it was usual for people to be expected to pay a part of their production (e.g., agricultural produce) or income to a church, a practice known as tithing. This was often obligatory. It is no longer enforced by civil rulers, but some religious organisations still expect or require their members to pay a tithe.[2]
Countries that levy a church tax
Austria
Every recognized religious group in Austria can collect church tax at a rate of 1.1%, though currently only the Catholic and Protestant churches make use of that opportunity. Church tax is compulsory for Catholics in Austria.
This tax was introduced into Austria by the German government in 1939 after the 1938 Anschluss (annexation of Austria into Germany). After Austria received national independence again after World War II the tax was retained in order to keep the churches independent of political powers.[3]
The members of the national Church of Denmark pay a church tax, called "kirkeskat". The rate varies among municipalities with a minimum of 0.4% and a maximum of 1.3% of taxable income in 2019.[4] The tax is generally around 0.7% of taxable income.[5] The collection of the church tax is administered by the Danish tax authorities, but the church tax is not considered as a genuine tax by, for example, Statistics Denmark, but as a "voluntary transfer from households to the state".[6]
The church tax does not cover the entire budget of the Church of Denmark. An additional 9% is paid by the government through block grants ("bloktilskud"), which means that even people who are not members of the Church of Denmark finance its activities through taxes.[7]
Finland
All members of the Evangelical Lutheran Church of Finland and the Finnish Orthodox Church, the two state churches of Finland, pay an income-based church tax of between 1% and 2% (average about 1.4%), depending on the municipality. Members can formally leave the church, becoming exempt from the tax from the following year. Studies have found that people leave the church in Finland mainly due to the general secularization of society, not to become exempt from the tax.[8]
About 70% of church revenues come from church tax (Kirchensteuer), also called worship tax (Kultussteuer) when referring to non-Christian religious bodies such as Jewish synagogues. This was about €13.1 billion in 2022.[9]
Article 137 of the Weimar Constitution of 1919 and article 140 of the German Basic Law of 1949 form the legal bases for this practice.
In Germany, on the basis of tax regulations passed by the religious communities and within the limits set by state laws, communities may either:
require the taxation authorities of the state to collect the fees from the members on the basis of income tax assessment (then, the authorities withhold a collection fee), or
choose to collect the church tax themselves.
In the first case, membership in the religious community is stored in a database at the Federal Tax Office which employers receive excerpts of for the purpose of withholding tax on paid income. If an employee's data indicate membership in a tax-collecting religious community, the employer must withhold church tax prepayments from their income in addition to other taxes. The state revenue authorities assess the church tax due at the annual tax assessment. State revenue authorities collect prepayment of church tax (and income tax) from self-employed persons and unemployed taxpayers.
If, however, religious communities choose to collect church tax themselves, they may demand that the tax authorities reveal taxation data of their members to calculate the contributions and prepayments owed. In particular, some smaller communities (e.g., the Jewish Community of Berlin) choose to collect taxes themselves to save collection fees the government would charge otherwise.
Church tax collected may be used to cover any church-related expenses such as funding institutions and foundations and paying ministers.
The church tax is only paid by members of the respective church, although the concept of "membership" is far from clear, and it may be asked what right the secular state has to tell the faithful what contribution they should make to their own denomination. People who are not members of a church tax-collecting denomination do not have to pay it. Members of a religious community may formally cease to be considered members by making a declaration to state (not religious) authorities, ending liability to pay church taxes. Some religious communities refuse religious marriages and funerals to members who leave.[10]
The money flow of state and churches is distinct at all levels of the procedures. Income on which church tax is paid is not subject to state income tax (as are voluntary contributions to the Church, for charity or other privileged purposes), so that in effect the state subsidises the church to some extent. The cost to the state of collecting church tax is reimbursed by the church.
The church tax is historically rooted in the pre-Christian Germanic custom whereby the chief of the tribe was directly responsible for the maintenance of priests and religious groups. During the Christianization of Western Europe, this custom was adopted by the Catholic and Arian churches in the concept of "Eigenkirchen" (churches owned by the landlord), which stood in strong contrast to the central church organization of the Catholic Church. Despite the resulting medieval conflict between emperor and pope, the concept of church maintenance by the ruler remained the accepted custom in most Western European countries. In Reformation times the local princes in Germany became officially heads of the church in Protestant areas, and were legally responsible for the maintenance of churches. Not until the 19th century were the finances of churches and state regulated to a point where the churches became financially independent. At this point, the church tax was introduced to replace the state benefits the churches had obtained previously.
The church tax was reaffirmed in Article 13 of the Concordat between Nazi Germany and the Vatican,[11] which guaranteed the right of the Church to levy taxes. Taxpayers, whether Catholic, Protestant or members of other tax-collecting communities, pay an amount equal to 8% in Bavaria and Baden-Württemberg, and 9% in the rest of the country, of their income tax to the church or religious community to which they belong.[12] For example, a person earning €50,000 may pay income tax at 20% (€10,000); the church tax is an additional 8% (or 9%) of that sum (€800 or €900).[10] The paid church tax is deductable in year of paying and reduces the taxable income.
Since 2015, private companies have to take part at the "church tax deduction procedure" ("Kirchensteuerabzugsverfahren"). This should ensure, that also shareholder of private companies pay church taxes on dividends.[13] This regulation was introduced because capital gains in Germany can be taxed at a flat rate since 2009 and therefore do not have to be declared in the income tax return. There was therefore an enforcement deficit.
In 2017, Germany's Catholic church recorded approximately €6billion tax take, split across its 27 different dioceses or church districts, despite a massive dip in attendance (according to the newspaper Handelsblatt, church attendance had dropped by more than 2.2million since the start of the millennium). Fifty years before Catholic church attendance exceeded 11 million, but had dropped to 2.5million. The German Church also has a total fortune of at least €20 billion. The three highest-income dioceses are Paderborn, at €3.5 billion, Munich at €2.8 billion, and Cologne at €2.6 billion.
People moving to Germany must declare their religious affiliation. The state-administered church tax is very successful at compelling tax payment, but many residents can avoid paying it, for example by not being a practising member of a faith. This has led to many people declaring they have abandoned the religion of their birth; it is not known what proportion do this only to avoid the tax.[clarification needed]
Iceland
Taxpayers in Iceland who belong to an officially registered religious group or secular humanist organization[14] must pay a congregation tax (Icelandic: sóknargjald, plural sóknargjöld)[15] which is deducted from income taxes and goes to their organization.[14] The sóknargjald of those who did not belong to any recognized religious organization formerly went to the University of Iceland.[16] This was changed in 2009;[17] people not belonging to a registered religious group or secular humanist organization must pay the same amount in tax, which is treated as income tax rather than paid to a church. In 2015, the monthly sóknargjald amounted to 824krónur,[15] about $US6. In March 2021, Judaism was added to Iceland’s list of state-recognised religious groups.[18]
The Church of Iceland receives governmental support beyond the congregation taxes paid by its members.
Taxpayers in Italy pay a mandatory eight per thousand tax, and have the option to choose to whom they will assign the funds. This tax amounts to 0.8% of the total income tax (IRPEF) and every taxpayer can choose the recipient of the contribution on their tax form. Regardless of whether the taxpayer expresses a preference or not, the 0.8% is already included in their tax levy.
If the choice is not expressly declared on the tax form, the tax is distributed according to the percentages of the taxpayers who have declared their choice of beneficiary. While it was intended that the state should use its own share of the 0.8% tax for social or cultural purposes, in practice it has employed it for general purposes including its military mission in Iraq in 2004[19][20] and the upgrading of prison infrastructure in 2011.[21]
Spain
The Spanish tax declaration form has a checkbox that allows the taxpayer to allocate 0.7% of their taxes to support the Catholic Church. This checkbox does not influence the total taxes paid; leaving the checkbox blank allocates the same money for general purposes.[22]
Sweden
The members of Church of Sweden pay church fee, which varies between municipalities, but can be as much as 2%. Church and state are separated as of 2000; however, the burial tax (begravningsavgift) is paid by everyone regardless of membership.
In a recent[when?] development, the Swedish government has agreed to continue collecting from individual taxpayers the annual payment that has always gone to the church. But now the fee will be an optional checkoff box on the tax return. The government will allocate the money collected to Catholic, Muslim, Jewish and other faiths as well as the Lutherans, with each taxpayer directing where his or her taxes should go.
Switzerland
There is no official state church in Switzerland. However, except Geneva and Neuchâtel, each canton (state) financially supports at least one of the three traditional denominations – Catholic, Old Catholic (in Switzerland Christian Catholic Church of Switzerland), or Evangelical Reformed – with funds collected through taxation. Each canton church tax may formally have to leave the church.[clarification needed] In some cantons private companies are unable to avoid payment of the church tax.[23]
In Geneva and Neuchâtel there is no church tax; each taxpayer is free to make a voluntary tax deductible contribution or gift to his church, either directly to the beneficiary or using the canton (state) tax system.[24]
Countries that have ended church taxes
England
There has long been no church tax in United Kingdom. Tithing was obligatory in England centuries ago.[25]
The English colonies which later became the United States had tax provisions to support religion, but the Constitution of the United States explicitly separates church and state, and no church tax is levied from citizens. Churches are generally exempt from paying taxes.[27] The United States Supreme Court has held that tax exemption for churches is constitutional under the Establishment Clause[28] and that churches and religious organizations may be subject to a general sales and use tax;[29] however, the Court has not addressed whether government may enact a specific "church tax".[30] The Establishment Clause of the US Constitution prohibits the US federal government and (through incorporation doctrine)[31] the 50 state governments from establishing a state religion or favoring one religion over another.[32]
Prior to American independence, most of the original colonies supported religious activities with taxes, with each colony often choosing a single church as their official religion. These official churches enjoyed privileges not granted to other religious groups.[33]Massachusetts and Connecticut supported the Congregational church through tax.[34] In colonial South Carolina, the Anglican Church benefited from church taxes.[35] Other colonies would more generally support religion by requiring taxes that would partially fund religious institutions - taxpayers could direct payments to the Protestant denomination of their choosing. Only the colonies of Delaware, New Jersey, Pennsylvania and Rhode Island did not require a tax to support religion. During and after the American Revolution, religious minorities, such as the Methodists and the Baptists, argued that taxes to support religion violated freedoms won from the British. Defenders of the practice argued that government needed to fund religious institutions because public virtue depended on these institutions which could not survive purely on private support.[33]
The Lateran Treaty was one component of the Lateran Pacts of 1929, agreements between the Kingdom of Italy under King Victor Emmanuel III and the Holy See under Pope Pius XI to settle the long-standing Roman question. The treaty and associated pacts were named after the Lateran Palace where they were signed on 11 February 1929, and the Italian parliament ratified them on 7 June 1929. The treaty recognised Vatican City as an independent state under the sovereignty of the Holy See. The Italian government also agreed to give the Roman Catholic Church financial compensation for the loss of the Papal States. In 1948, the Lateran Treaty was recognized in the Constitution of Italy as regulating the relations between the state and the Catholic Church. The treaty was significantly revised in 1984, ending the status of Catholicism as the sole state religion.
A tithe is a one-tenth part of something, paid as a contribution to a religious organization or compulsory tax to government. Modern tithes are normally voluntary and paid in cash, cheques or via online giving, whereas historically tithes were required and paid in kind, such as agricultural produce. After the separation of church and state, church tax linked to the tax system are instead used in many countries to support their national church. Donations to the church beyond what is owed in the tithe, or by those attending a congregation who are not members or adherents, are known as offerings, and often are designated for specific purposes such as a building program, debt retirement, or mission work.
The Evangelical-Lutheran Church in Denmark or National Church, sometimes called the Church of Denmark, is the established, state-supported church in Denmark. The supreme secular authority of the church is composed of the reigning monarch and Denmark's Parliament, the Folketing. As of 1 January 2024, 71.4% of the population of Denmark are members, though membership is voluntary.
A state religion is a religion or creed officially endorsed by a sovereign state. A state with an official religion, while not a secular state, is not necessarily a theocracy. State religions are official or government-sanctioned establishments of a religion, but the state does not need to be under the control of the clergy, nor is the state-sanctioned religion necessarily under the control of the state.
A concordat is a convention between the Holy See and a sovereign state that defines the relationship between the Catholic Church and the state in matters that concern both, i.e. the recognition and privileges of the Catholic Church in a particular country and with secular matters that affect church interests.
Religious activities generally need some infrastructure to be conducted. For this reason, there generally exist religion-supporting organizations, which are some form of organization that manages:
Freedom of religion in Germany is guaranteed by article 4 of the German constitution. This states that "the freedom of religion, conscience and the freedom of confessing one's religious or philosophical beliefs are inviolable. Uninfringed religious practice is guaranteed." In addition, article 3 states that "No one may be prejudiced or favored because of his gender, his descent, his race, his language, his homeland and place of origin, his faith or his religious or political views." Any person or organization can call the Federal Constitutional Court of Germany for free help.
Eight per thousand is an Italian law under which Italian taxpayers devolve a compulsory 8 ‰ = 0.8% from their annual income tax return to an organised religion recognised by Italy or, alternatively, to a state-run social assistance scheme.
Freedom of religion in Italy is guaranteed under the 1947 constitution of the Italian Republic. Before that religious toleration was provided for by the constitution of the Kingdom of Italy which in turn derived from the Albertine Statute granted by Carlo Alberto of the Kingdom of Sardinia to his subjects in 1848, the Year of Revolutions.
Religion in Iceland has been predominantly Christianity since its adoption as the state religion by the Althing under the influence of Olaf Tryggvason, the king of Norway, in 999/1000 CE. Until then, in the 9th and 10th centuries, the prevailing religion among the early Icelanders — who were mostly Norwegian settlers fleeing Harald Fairhair's monarchical centralisation in 872–930, with some Swedes and Norse British settlers — was the northern Germanic religion, which persisted for centuries even after the official Christianisation of the state.
The Catholic Church in Germany or Roman Catholic Church in Germany is part of the worldwide Roman Catholic Church in communion with the Pope, assisted by the Roman Curia, and with the German bishops. The current "Speaker" of the episcopal conference is Georg Bätzing, Bishop of the Roman Catholic Diocese of Limburg. It is divided into 27 dioceses, 7 of them with the rank of metropolitan sees.
Lutheranism is present on all inhabited continents with an estimated 80 million adherents, out of which 74.2 million are affiliated with the Lutheran World Federation. A major movement that first began the Reformation, it constitutes one of the largest Protestant branches claiming around 80 million out of 920 million Protestants. The Lutheran World Federation brings together the vast majority of Lutherans. Apart from it, there are also other organisations such as the International Lutheran Council and the Confessional Evangelical Lutheran Conference, as well as multiple independent Lutheran denominations.
Religion in Italy has been historically characterised by the dominance of the Catholic Church, the largest branch of Christianity, since the East–West Schism. This is in part due to the importance of Rome in the history of the Church, including its historical status as a leading patriarchate and the presence of the Vatican, the Catholic Church's headquarters and the residence of the Pope—the Bishop of Rome—within its borders. However, due to immigration, notably the influx of Muslims, Eastern Orthodox Christians, Protestants, Buddhists and Hindus, as well as proselytism and secularization, religious pluralism in Italy has increased in the 21st century. Italy also features a pre-Christian Jewish community, an autochthonous Protestant church–the Waldensian Evangelical Church and one of the largest shares of Jehovah's Witnesses in the world.
Christianity is the most widely professed religion in Croatia, representing 87.4% of the total population. A largest majority of the Croats declare themselves to be active members of the Catholic Church.
A national church is a Christian church associated with a specific ethnic group or nation state. The idea was notably discussed during the 19th century, during the emergence of modern nationalism.
Taxation in Finland is mainly carried out through the Finnish Tax Administration, an agency of the Ministry of Finance. Finnish Customs, the Finnish Transport and Communications Agency Traficom, and pension funds also collect taxes. Taxes collected are distributed to the Government, municipalities, church, and the Social Insurance Institution, Kela.
Freedom of religion in Iceland is guaranteed by the 64th article of the Constitution of Iceland. However at the same time the 62nd article states that the Evangelical Lutheran Church shall be the national church (þjóðkirkja) and the national curriculum places emphasis on Christian studies.
In public choice theory, tax choice is an emerging type of citizen sourcing in which individuals or groups of taxpayers decide how to allocate part of their taxes of a municipal or public budget appropriation through a process of democratic deliberation and decision-making. Its proponents apply the theory of consumer choice to public finance. They claim taxpayers react positively when they are allowed to allocate portions of their taxes to specific spending.
Zuism is an Icelandic group established in the 2010s to be a modern pagan new religious movement based on the Sumerian religion.
The status of religious freedom in Europe varies from country to country. States can differ based on whether or not they guarantee equal treatment under law for followers of different religions, whether they establish a state religion, the extent to which religious organizations operating within the country are policed, and the extent to which religious law is used as a basis for the country's legal code.
References
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