The Amish are exempt from some taxes but not all of them

The Amish do not pay federal income tax, but only because they meet a specific religious exemption created by Congress in 1965. This exemption applies to members of recognized religious groups—including the Amish, Mennonites, and Hutterites—who conscientiously object to accepting public insurance benefits and whose faith forbids them from doing so. The exemption is narrow: it covers only the self-employment tax portion of Social Security, not income tax itself. Many Amish people pay income tax on wages or business income, just like anyone else.

The confusion arises because the Amish do not participate in Social Security, Medicare, or Medicaid by choice, and the tax code allows them to skip the self-employment tax that funds these programs. But this is not a blanket exemption. An Amish farmer or business owner still owes federal income tax on their profits. They still owe property tax, sales tax, and state income tax where it applies. The exemption is specifically about the 15.3 percent self-employment tax that self-employed people normally pay into Social Security.

Key Takeaways

  • The Amish are exempt from paying self-employment tax (the Social Security portion) if they are members of a recognized religious group and their faith forbids accepting public benefits.
  • This exemption does not cover federal income tax, state income tax, property tax, or sales tax—the Amish pay all of these.
  • The exemption requires the Amish to formally request it from the IRS using Form 4029, and they must prove membership in a may have access to religious community.
  • Because the Amish do not pay into Social Security, they also do not receive Social Security benefits in retirement.
  • Amish businesses that hire non-Amish employees must still pay employer payroll taxes on those workers' wages.

How the self-employment tax exemption works

To claim the exemption, an Amish person must file Form 4029 with the IRS. This form asks for proof that the person is a member of a recognized religious sect and that the sect's teachings forbid members from accepting public insurance benefits. The IRS maintains a list of groups that may have access to, and the Amish, Old Order Mennonites, and Hutterites are on it. Once approved, the person is excused from paying the 15.3 percent self-employment tax on net earnings from self-employment.

The trade-off is permanent: if you claim this exemption, you cannot later change your mind and pay into Social Security to earn benefits. The IRS treats the exemption as binding. This is why the Amish community has developed its own system of mutual aid and family support for retirement and medical care, rather than relying on government programs.

An Amish person who works as an employee for someone else (rather than being self-employed) does not need to file Form 4029. Their employer withholds income tax from their paycheck as normal, but the employee can request an exemption from the employer's withholding if they meet the religious criteria. However, this is less common because most Amish work for themselves or within family businesses.

What taxes the Amish do pay

The Amish pay federal income tax on business profits and wages, just as other Americans do. If an Amish farmer sells crops or an Amish carpenter earns income, that income is subject to federal tax. The self-employment tax exemption does not erase this obligation. An Amish business owner must file a tax return and pay income tax on net profit.

The Amish also pay property tax on land and buildings they own. They pay sales tax on goods they purchase in states that have sales tax. They pay state income tax in states that impose it. In some states, the Amish have negotiated exemptions from certain regulations (such as building codes or vehicle safety standards) based on religious grounds, but these are separate from tax law and vary by state.

When an Amish business hires non-Amish workers, the business must pay employer payroll taxes on those employees' wages—Social Security, Medicare, and unemployment insurance. The exemption applies only to the Amish owner's own self-employment tax, not to taxes owed on employees.

Why the exemption exists and who qualifies

Congress created the self-employment tax exemption in 1965 in response to a conflict between Amish religious beliefs and federal law. The Amish faith teaches that members should not accept government aid or participate in government insurance programs. They believe in community self-reliance and mutual aid within the church. When Social Security became mandatory for self-employed people, the Amish sought an exemption on religious grounds.

The exemption is not automatic. A person must be a member of a recognized religious sect whose teachings forbid acceptance of public benefits. The IRS has a published list of may have access to groups. Individual Amish people must affirmatively request the exemption by filing Form 4029 and providing documentation of their membership and their sect's teachings. Without this formal request, an Amish person is treated like any other self-employed American and must pay self-employment tax.

Other religious groups have sought similar exemptions, but the IRS applies strict criteria. The group's teachings must explicitly forbid members from accepting public benefits, and the group must have a history of providing for its own members' welfare. The Amish meet these criteria because their church discipline and community structure may support that no member goes without food, shelter, or medical care.

Common misunderstandings about Amish taxes

One widespread myth is that the Amish pay no taxes at all. This is false. They pay income tax, property tax, and sales tax. The only tax they are exempt from is self-employment tax, and only if they have formally requested the exemption and meet the IRS criteria.

Another misunderstanding is that the exemption applies to all Amish people automatically. It does not. An Amish person who does not file Form 4029 or who does not meet the criteria (for example, someone who has left the church) must pay self-employment tax like anyone else. The exemption is individual and must be claimed.

A third confusion is that the Amish are exempt from state and local taxes. They are not. Property tax, sales tax, and state income tax explore to the Amish in the same way they explore to other residents. Some states have made accommodations for Amish religious practices—such as exempting horse-drawn buggies from certain vehicle registration fees—but these are narrow exceptions, not blanket tax breaks.

What happens if an Amish person claims the exemption and then leaves the church

If someone claims the self-employment tax exemption and later leaves the Amish church or moves to a different religious community, they cannot retroactively undo the exemption. The IRS treats the exemption as permanent and binding. This means the person will not have paid into Social Security during the years they claimed the exemption, and they will not be able to earn Social Security credits for those years later.

This is one reason the Amish take the exemption seriously and why it is not a casual tax-avoidance strategy. Claiming the exemption is a religious and financial commitment. It signals that the person intends to remain in the Amish community and rely on community support rather than government benefits in retirement.

How to verify Amish tax status or file Form 4029

If you are Amish and believe you may have access to for the self-employment tax exemption, you will need to obtain Form 4029 from the IRS website (irs.gov) or by calling the IRS at 1-800-829-3676. The form asks for your name, address, religious sect, and a statement of your sect's teachings regarding public benefits. You will also need to provide documentation of your membership—often a letter from your church bishop or a statement signed by church leaders.

The form should be filed with your tax return for the first year you claim the exemption. The IRS will review it and either approve or deny the exemption. If approved, you will receive a letter confirming your exemption status. You should keep this letter with your tax records.

If you are not Amish but are curious about whether your own religious group might may have access to for a similar exemption, you can contact the IRS directly. The criteria are strict, and most groups do not meet them. The IRS has published guidance on what qualifies, and you can review it on their website.

Frequently Asked Questions

Do the Amish get Social Security benefits when they retire?

No. Because the Amish are exempt from paying self-employment tax, they do not earn Social Security credits and are not may have access to to Social Security benefits in retirement. Instead, the Amish community provides for elderly members through family support, church aid, and mutual information. This is part of their religious commitment to community care.

Can an Amish person work for a regular employer and avoid taxes?

No. If an Amish person works as an employee for a non-Amish employer, federal income tax is withheld from their paycheck just like any other employee. The self-employment tax exemption applies only to self-employed people. An employee Amish person can request an exemption from income tax withholding if they meet the religious criteria, but this is uncommon and requires separate paperwork.

Do Amish-owned businesses have to collect sales tax?

Yes, in states that have sales tax. An Amish business that sells goods or services must collect and remit sales tax to the state, just as any other business does. The self-employment tax exemption does not extend to sales tax or other state and local taxes.

What if an Amish person does not file Form 4029—do they still get the exemption?

No. The exemption is not automatic. Without filing Form 4029 and receiving approval from the IRS, an Amish person is treated as a regular self-employed person and must pay self-employment tax. The exemption must be formally claimed and documented.

Can non-Amish people claim a religious exemption from self-employment tax?

Possibly, but only if they are members of a recognized religious sect whose teachings forbid acceptance of public benefits and whose community provides for members' welfare. The IRS maintains a list of may have access to groups, which includes the Amish, Old Order Mennonites, and Hutterites. Other groups can petition the IRS for recognition, but the criteria are strict and few groups meet them.