Tithing on Rental or Side-Hustle Income

"Anyone who receives the right to be called a son of the Lord is rich indeed. Because he brought nothing into the world, and he can take nothing out of it. But if we have food and clothing, we will be content with that." — 1 Timothy 6:8-9, NIV

Modern income often isn't simply W-2 wages or self-employment. It's diversified: a primary job plus a rental property, a side hustle, Airbnb income, stock dividends. Each income stream raises the tithing question: Should I tithe on this? If so, at what percentage and on what amount?

The challenge: different income types have different cost structures and tax implications. Tithing on gross rental revenue (before the mortgage, property tax, insurance, and maintenance) would be tithing 50%+ on money you never actually keep.

The Foundational Principle

Across all income types, tithe on "increase"—profit after legitimate costs. This principle applies whether you're a farmer, a consultant, or a landlord.

Rental Income: A Detailed Example

Rental property tithing is often misunderstood. Consider a landlord with a property generating $24,000 annual rent.

Gross rental income: $24,000

Should she tithe $2,400?

No. Here's her actual cash flow:

She actually keeps $900/year from this property. The rest goes to costs that are necessary to own the property.

Should she tithe on $24,000 (gross rent) or $900 (net cash)?

Biblically, she should tithe on $900. That's her genuine "increase." The other $23,100 is reinvested in property costs (the mortgage principal is equity, not loss; the interest is a cost; maintenance is necessary).

Tax implications: For tax purposes, her rental income is $24,000 minus deductible expenses. She might show a loss for tax purposes if depreciation exceeds income. She certainly doesn't tithe on depreciation (it's not cash out).

Side Hustle Income

Side hustles vary widely. Someone driving for DoorDash has different economics than someone selling handmade items online.

Example: Rachel's Freelance Writing

Rachel earns $3,000/month in freelance writing income. But her expenses:

• Computer/software: $100/month
• Internet (business portion): $20/month
• Subcontracted editing: $500/month
• Accounting/business fees: $50/month
• Professional development: $25/month
• Total: $695/month

Net from side hustle: $2,305/month

Rachel should tithe on $2,305, not $3,000. That's her genuine increase.

She could approach this two ways:

Option 1: Tithe on net monthly ($230.50/month = 10% of net $2,305)

Option 2: Set aside 10% of gross revenue ($300/month) into a business account, then deduct expenses, then give from remainder. This honors "firstfruits" before expenses.

Both are reasonable. Option 1 is more accurate. Option 2 honors the firstfruits principle while ultimately tithing net.

Gig Economy Income

Gig workers (Uber, DoorDash, TaskRabbit, etc.) face similar dynamics.

Example: Marcus's Delivery Driving

Marcus earns $4,000/month gross from delivery driving. His actual costs:

Marcus keeps $2,420/month from his $4,000 gross. He should tithe on $2,420 (or ~$242/month).

Note on vehicle depreciation: Using IRS standard mileage rate ($0.655/mile in 2026) is appropriate. This accounts for depreciation without separate calculation.

Investment Income

Different investment income types have different cost structures:

Dividend income: You own stock worth $100,000 that costs $50,000 (gain of $50,000). You receive $3,000 in annual dividends.

Should you tithe on:

• The $50,000 unrealized gain? (No—it's unrealized)
• The $3,000 dividend? (Yes—it's realized income)
• Only after taxes? (Reasonable—taxes are a real cost)

Answer: Tithe $300 (10% of $3,000 dividend), or $250 if accounting for capital gains tax (~20% of dividend goes to taxes).

Rental property depreciation: Some landlords receive "depreciation deductions" for tax purposes even though the building isn't losing value. Example: $20,000 depreciation that creates a tax loss even though the property generated $5,000 net cash.

In this case, tithe on cash ($5,000), not on tax deduction ($20,000). The depreciation is a tax artifact, not cash increase.

Combining Multiple Income Streams

If you have W-2 income, rental income, and a side hustle, you could:

Approach 1: Tithe on total net income Sum all sources' net profit/loss, then tithe 10% of total. This ensures consistency.

Approach 2: Tithe on each source independently W-2: 10% of net Rental: 10% of net profit Side hustle: 10% of net profit

Both approaches work. Approach 1 is simpler; Approach 2 acknowledges that each income type has different profit margins.

Practical Framework: The Income Waterfall

For all income, use this calculation:

Step 1: Gross income (rental rent, side hustle revenue, gig fees) Step 2: Direct business costs (mortgage interest, platform fees, vehicle costs, supplies) Step 3: Gross profit (Step 1 - Step 2) Step 4: Tithe (10% of Step 3) Step 5: Remaining (Step 3 - Step 4) Step 6: Taxes (calculated on Step 3 or Step 5, depending on approach) Step 7: Net to personal account (Step 5 - Step 6)

This ensures you tithe on genuine profit, then pay taxes on the remainder.

Common Mistakes to Avoid

Mistake 1: Tithing on gross rental income without accounting for mortgage Result: You'd tithe away money needed for property costs.

Mistake 2: Not accounting for vacation reserves in rental income If you plan to reserve 10% of rental income for unexpected maintenance, that's a legitimate cost, not profit.

Mistake 3: Treating unrealized gains as tithe-able income Your rental property appreciated $50,000. You don't tithe on appreciation until you sell (realize the gain).

Mistake 4: Forgetting self-employment tax on side hustle income If your side hustle shows $10,000 profit, self-employment tax is ~15% ($1,500). Account for this. True net is $8,500. Tithe on $8,500.

Mistake 5: Complex accounting confusing simplicity For side hustles and rental properties, use simple math: Revenue minus expenses = profit. Tithe on profit.

Case Study: The Multi-Stream Giver

James has:

• W-2 job: $80,000/year
• Rental property: $12,000/year gross rent, $8,000 net profit
• Side business: $20,000/year gross, $12,000 net profit

Approach: Tithe on all net income

• W-2 net (after taxes): ~$60,000
• Rental net profit: $8,000
• Side business net: $12,000
• Total net income: $80,000

Tithe: $8,000 (10%)

This is more generous than W-2 only tithing (which would be $6,000 on $60,000 net), but it's proportional and sustainable.

Automation for Multi-Stream Earners

To avoid complexity:

1. Track all income sources (spreadsheet or accounting software)

2. Calculate net profit for each at month end

3. Set aside 10% total each month (combined)

4. Give quarterly or annually from the giving fund

5. Review annually and adjust if income patterns change

This prevents decision fatigue while ensuring consistent giving.

The Bottom Line

Regardless of income source, tithe on genuine profit—what you actually keep after legitimate costs. This honors biblical principle while remaining financially sustainable.

A consultant tithing on net profit from multiple streams is giving faithfully. So is a landlord tithing on true net cash flow. So is a gig worker accounting for vehicle costs before calculating their tithe.

Simplicity: Gross income minus all legitimate costs = profit. Tithe 10% of profit.

Sources

• Köstenberger, Andreas J. & Mask, David C. "The Apostles' Teaching About Money." B&H Publishing, 2021.
• Blue, Ron. "Master Your Money: A Step-by-Step Plan to Financial Freedom." Thomas Nelson, 1986.
• IRS Publication 587: "Business Use of Your Home."