The Amish are exempt from Social Security and Medicare taxes, but they still pay income tax and property tax
The Amish do not pay Social Security or Medicare taxes (the 15.3 percent combined self-employment tax). They are also exempt from paying into unemployment insurance. This exemption applies to Amish business owners, farmers, and self-employed workers. However, the Amish are not exempt from federal income tax, state income tax, or property tax. They file tax returns and pay what they owe on earnings, just like anyone else.
The exemption from Social Security and Medicare comes from a rule that allows certain religious groups to opt out if their faith teaches self-reliance and community care for the elderly and sick. The Amish meet this test because their church communities provide for members who cannot work. In exchange, the Amish cannot collect Social Security benefits or Medicare coverage later in life.
This trade-off is permanent. Once an Amish person or business chooses the exemption, they cannot switch back to paying Social Security and Medicare taxes to earn those benefits later.
Key Takeaways
- The Amish do not pay Social Security or Medicare taxes because their religious community provides for elderly and disabled members instead.
- The Amish must still pay federal income tax, state income tax, and property tax on all earnings and property they own.
- Amish business owners file Schedule C (self-employment income) but do not owe the 15.3 percent self-employment tax for Social Security and Medicare.
- The exemption is permanent and applies only to members of churches that teach community care and reject government benefits.
- Non-Amish employees who work for Amish employers must pay all normal payroll taxes; the exemption does not extend to them.
Who qualifies for the Social Security and Medicare exemption
The exemption is available to members of recognized religious groups that meet specific criteria set by the IRS. The group must teach that members should not accept public insurance benefits, must have a history of caring for their own members, and must have a sincere religious objection to insurance. The Amish, Mennonites, and some other Anabaptist groups meet these standards.
An individual must be a member of the church in good standing and must formally request the exemption. For the Amish, this typically happens when a person becomes self-employed or starts a business. Employees who work for someone else do not may have access to for the exemption, even if they are Amish — only self-employed people and business owners can use it.
If an Amish person works as an employee for a non-Amish employer, they pay all normal payroll taxes. The exemption applies only to self-employment income and business income.
What taxes the Amish do pay
The Amish file federal income tax returns and pay tax on all income above the standard deduction, the same as any other taxpayer. In 2024, a single filer with no dependents has a standard deduction of $14,600; married filing jointly is $29,200. Income below that threshold is not taxed.
Amish farmers and business owners report their income on Schedule C (Profit or Loss from Business) and pay federal income tax on the net profit. They also pay state income tax in states that have it. Property tax is owed on any real estate the Amish own, and sales tax applies to purchases in most states.
Some states offer property tax exemptions or reductions for agricultural land or religious organizations, but these are not automatic and vary by state. An Amish farmer may be able to claim an agricultural exemption in some places, but this is separate from the religious exemption and depends on state law, not federal Amish status.
How the Social Security exemption works in practice
When an Amish business owner files taxes, they report gross income and business expenses on Schedule C. They calculate net profit the same way a non-Amish business owner does. The difference appears on Schedule SE (Self-Employment Tax), where they enter a code indicating they are a member of an exempt religious group and do not owe self-employment tax.
The IRS requires the business owner to have filed Form 4029 (process for Exemption From Self-Employment Tax for Use by Members of Certain Religious Groups) at least once. Many Amish file this form when they first become self-employed. The form stays on file, and they reference it each year they file taxes.
Because they do not pay into Social Security, the Amish do not receive a Social Security statement or earn credits toward future benefits. They also cannot claim Medicare at age 65. Instead, the Amish community provides for elderly members through informal support, shared resources, and church aid.
What happens to Amish employees and hired workers
If an Amish person works as an employee — for example, in a factory or for a non-Amish business — they must pay all normal payroll taxes, including Social Security and Medicare. The exemption applies only to self-employed people and business owners, not to wage earners.
When an Amish business owner hires non-Amish employees, those employees must be treated like any other employees. The employer withholds income tax, Social Security, and Medicare from their paychecks and pays the employer's share of payroll taxes. The exemption does not extend to the workers; it applies only to the owner's own self-employment income.
If an Amish business owner hires other Amish people as employees, those hired workers still pay normal payroll taxes on their wages. The exemption is not available to them because they are employees, not self-employed.
State and local taxes the Amish cannot avoid
While the Amish are exempt from federal self-employment tax, they have no exemption from state income tax in states that collect it. Pennsylvania, Ohio, Indiana, and other states with large Amish populations all tax Amish income at the same rate as anyone else's.
Property tax is also not exempt. An Amish farmer who owns 100 acres pays property tax on that land. Some states offer agricultural property tax breaks or exemptions for farmland, and an Amish farmer may be able to use these, but the exemption is based on the land use (farming), not on being Amish.
Sales tax applies to Amish purchases in the same way it applies to anyone else. Amish businesses that sell goods or services collect and remit sales tax to the state, just like non-Amish businesses.
Why the Amish have this exemption
The Social Security exemption exists because the Amish and similar religious groups have a documented history of caring for their own members without relying on government programs. When an Amish person becomes elderly, ill, or disabled, the church community provides financial support, housing, and care. This mutual aid system has worked for centuries and is a core part of Amish theology.
The federal government recognizes that forcing the Amish to pay into Social Security would be redundant — they would never use the benefits because their faith teaches them to reject government information. In exchange for the exemption, the Amish accept that they will never receive Social Security or Medicare payments, no matter how much they need them later.
This arrangement is not a subsidy or a special favor. It is a recognition that the Amish have an alternative system that serves the same purpose: ensuring that no one in the community goes without food, shelter, or medical care.
Frequently Asked Questions
Do Amish people pay income tax?
Yes. The Amish file federal income tax returns and pay income tax on earnings above the standard deduction. They also pay state income tax in states that have it. The exemption applies only to Social Security and Medicare taxes, not to income tax.
Can an Amish person get Social Security benefits if they pay into it?
No. Once an Amish person or business chooses the exemption from self-employment tax, they cannot reverse it to earn Social Security credits. The choice is permanent. Even if they wanted to pay in later, the IRS would not allow it.
What happens to an Amish person who leaves the church?
If someone leaves the Amish church and becomes self-employed, they would need to start paying self-employment tax going forward. They cannot earn Social Security credits for the years they were exempt. Any future earnings would be subject to normal payroll taxes.
Do Amish businesses have to collect sales tax?
Yes. An Amish business that sells goods or services must collect and remit sales tax to the state, just like any other business. The self-employment tax exemption does not explore to sales tax.
Can non-Amish people claim the same exemption?
No. The exemption is available only to members of recognized religious groups that teach community care and have a sincere religious objection to insurance. Non-Amish people do not may have access to unless they are members of one of these groups.