Marco Quiroz-Gutierrez
4 min read
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As an American citizen, Pope Leo XIV could be required to file a tax return with the U.S. government, and his tax liability may reach six figures. Because the U.S. taxes its citizens on their worldwide income, Leo will need to file a return, with some additional details based on the bank accounts he controls as head of the Vatican, unless the U.S. makes an exception for him or he renounces his citizenship, experts said.
One of the first things Pope Leo XIV may need to do as the newly elected leader of the Catholic Church has nothing to do with religion, but rather finances: finding an accountant.
The U.S. is one of only a handful of countries that taxes citizens living abroad. Thus, thanks to his American passport, the 69-year-old Chicago-born pope, known until last week as Robert Prevost, will likely need to file a tax return to the U.S. government just like any other citizen, experts told Fortune.
As pope, Leo XIV is entitled to a salary of 30,000 euros, or about $33,000 per month, which puts his annual earnings at about $396,000 per year. Unless given an exception, the first American pontiff may have an estimated tax liability of $135,287, which includes both federal and self-employment tax, based on his salary, Washington-based accountant Hector Castaneda told Fortune.
Edward A. David, an assistant professor in the department of theology and religious studies at King’s College London, told the Washington Post it’s hard to know whether the U.S. will insist on collecting the pope’s tax return, and it’s possible the government could exempt him. Still, Timothy Fogarty, an accounting professor at Case Western Reserve University, told Fortune it’s likely the pope would not be exempt.
“Although there is no accounting for the discretion that might be brought to bear, 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. There is no blanket exception for religious personnel nor for people who are diplomats/head of state for foreign countries such as the Vatican,” said Fogarty.
The Treasury Department did not immediately respond to Fortune’s question on whether the pope could receive an exemption.
From 2015 to 2023, Leo XIV served as Bishop of Chiclayo, Peru, where he likely already dealt with the far-reaching U.S. tax system. Yet, because of his higher salary, should he accept it, and his control over Vatican financial accounts, filing a tax return may be more complicated than ever.
Filing a tax return is obligatory for all citizens, and if the laws were applied as they would be for every other citizen, Leo XIV may face a hefty tax bill.
