Parsonage definition is - the house provided by a church for its pastor. Parsonage Allowance: An allowance designated by a church or other organization for its church professionals (clergy) for the expenses of providing and maintaining a home. A parsonage is a house owned by the church, usually next door, that is for the pastor of the church and his family. Parsonage definition, the residence of a member of the clergy, as provided by the parish or church. When a Pastor’s House Is a Church Home: Why the Parsonage Allowance Is Desirable Under the Establishment Clause. Parsonage is a somewhat old-fashioned term for the housing a church provides to its clergy. See more. The priest of a church in the English countryside might live in a nearby parsonage. Federalist Society Review, Volume 18 Depending on the church, it may include all utilities and lawn maintenance.