(NewsNation) — Pope Leo, the first American-born pontiff, may need to file taxes with the Internal Revenue Service.
Tax experts say the pope’s U.S. citizenship could require him to submit annual tax returns despite living at the Vatican due to America’s unique policy of taxing citizens on worldwide income.
His estimated $400,000 annual salary, plus perks like housing, meals and transportation, could trigger scrutiny. That’s good enough to be in the second-highest tax bracket of 35%.
“The U.S. is unique among developed countries in that it taxes U.S. citizens on their worldwide income,” Caroline Bruckner, a tax professor at American University’s Kogod School of Business, told NewsNation. “If you’re a U.S. citizen and you live outside the U.S. for a full year and earn income, you generally may be subject to a tax return filing like everyone else.”
Americans living abroad must file returns if they earn above a certain threshold, which adjusts annually for inflation. For 2025, that figure stands at $130,000.
While the pope likely won’t receive a formal salary, following the tradition of his predecessors, income from speaking engagements or other sources could trigger filing requirements even if donated back to the church, Bruckner explained.
The situation is further complicated by Pope Leo’s forthcoming role as head of the Vatican Bank.
In 2015, Pope Francis signed an agreement with the United States subjecting Vatican accounts to U.S. banking and reporting requirements, though these were never expected to apply to an American pope.
When asked about the pope’s tax status, Michael Faulkender, acting IRS commissioner, was uncertain.
“It’s based upon where the income is generated,” Faulkender told NewsNation. “I don’t know enough about Pope Leo, but I believe he is going to generate that income in the United States. I don’t know enough about his citizenship to know whether or not there would be a tax on him.”
