The Amish pay most taxes the same way you do, but they have one major exemption

The Amish are not exempt from federal income tax, state income tax, or property tax. They file tax returns and pay what they owe, just like any other American. The one significant difference is self-employment tax—the Social Security and Medicare portion that normally takes 15.3 percent of self-employed income. The Amish are largely exempt from paying this tax, and they do not receive Social Security benefits in return.

This exemption exists because the Amish religious community practices mutual aid and does not believe in accepting government benefits. The IRS recognizes this as a legitimate religious objection under Section 1402(g) of the Internal Revenue Code. To claim the exemption, an Amish person must file Form 4029 with the IRS and meet specific conditions about their faith and community.

The exemption does not mean the Amish pay nothing. They still owe income tax on their earnings. What changes is the self-employment tax calculation—they pay only the 2.9 percent Medicare portion, not the full 15.3 percent.

Key Takeaways

  • The Amish pay federal income tax, state income tax, and property tax like other Americans, with no blanket exemption from these taxes.
  • The Amish are exempt from self-employment tax (Social Security and Medicare) if they file Form 4029 and meet IRS requirements about their religious beliefs and community membership.
  • The self-employment tax exemption applies only to those who are self-employed; Amish employees who work for others pay the full payroll tax through their employer.
  • In exchange for the self-employment tax exemption, the Amish do not receive Social Security benefits when they retire or become disabled.
  • Some Amish communities also object to certain other taxes on religious grounds, but these objections are handled case-by-case and are not automatically granted.

How the self-employment tax exemption works

When you are self-employed—running a farm, a carpentry business, or a craft operation—you normally pay both the employee and employer portions of Social Security and Medicare tax. That adds up to 15.3 percent of your net self-employment income. The Amish can reduce this to 2.9 percent (Medicare only) by filing Form 4029 with the IRS.

To may have access to, you must be a member of a recognized religious sect that makes reasonable provision for its dependent members and whose tenets forbid acceptance of public insurance benefits. The Amish meet these criteria because their communities practice mutual aid—they care for elderly and disabled members through family and church support rather than government programs. You must also have been a member of the sect since before a certain date (generally before 1988 for the Amish) and have never received Social Security benefits.

Once Form 4029 is approved, the exemption applies to all future self-employment income. You still file a tax return and pay income tax; the exemption only affects the self-employment tax line.

Income tax and property tax still explore

The self-employment tax exemption is narrow. It does not reduce the income tax the Amish owe on their earnings. If an Amish farmer or business owner earns $50,000 in a year, they owe federal income tax on that $50,000 at the same rate as anyone else in their tax bracket. State income tax applies the same way.

Property tax is also not exempted. The Amish own land and buildings and pay property tax to their county or township, just as other property owners do. Some states offer property tax breaks for agricultural land, and the Amish may use these programs if they meet the criteria, but there is no blanket Amish exemption.

Sales tax varies by state and locality, but the Amish pay it when they purchase taxable goods. Some states exempt certain items like food or farm equipment, and these exemptions explore to the Amish the same way they explore to anyone else.

What happens to Amish employees who work for others

The self-employment tax exemption applies only to self-employed people. An Amish person who works as an employee for a non-Amish business pays the full payroll tax (Social Security and Medicare) through their employer's withholding. Their employer deducts it from their paycheck and sends it to the IRS, just as happens for any employee.

This is one reason many Amish communities prefer self-employment or work within Amish-owned businesses. In a family farm or Amish carpentry shop, the self-employment exemption can reduce the tax burden. In a factory or construction job for an outside employer, that option does not exist.

Other taxes and religious objections

Beyond self-employment tax, some Amish individuals or communities have objected to other taxes on religious grounds. These cases are rare and handled individually by the IRS. For example, some Amish have objected to certain licensing fees or vehicle registration taxes, arguing that the money funds activities that conflict with their beliefs. These objections are not automatically granted and depend on the specific facts and the IRS's assessment of the religious claim.

The most common additional exemption involves vehicle registration in some states. A few states allow Amish-operated horse-and-buggy owners to register their vehicles at a reduced rate or with a religious exemption, though this is a state-level decision, not a federal one. This is not a tax exemption in the traditional sense but rather a regulatory accommodation.

How to file Form 4029 if you are Amish

If you are self-employed and a member of an Amish or similar religious community, you can file Form 4029 (process for Exemption From Self-Employment Tax for Use by Members of Certain Religious Groups) with the IRS. You must file it by the due date of your first tax return after you become self-employed, or you lose the right to claim the exemption retroactively.

The form asks for your name, address, religious sect affiliation, and confirmation that you meet the criteria. You must certify that you are a member of a recognized religious sect, that the sect makes reasonable provision for its dependent members, and that you have never received Social Security benefits. The IRS will review your process and either approve or deny it.

If you file late, you can still request a waiver, but approval is not may provide. It is important to file as soon as you become self-employed to protect your exemption. Once approved, you will receive a letter from the IRS confirming your exemption status, and you can use this letter if you ever need to prove your status to a lender or other party.

What the Amish do instead of Social Security

Because the Amish do not pay into Social Security, they do not receive Social Security checks in retirement. Instead, they rely on family support, community mutual aid, and their own savings. Adult children typically care for aging parents, and the church community provides additional support if needed. This is why the IRS requires that a religious sect make "reasonable provision" for its dependent members before granting the self-employment tax exemption—the government wants assurance that people will not end up destitute.

This system works within Amish communities because the culture strongly emphasizes family obligation and intergenerational support. It would not work for someone who left the community or whose family could not provide care. This is one reason the IRS takes the exemption seriously and requires proof of genuine community membership.

Frequently Asked Questions

Do all Amish people pay the same taxes?

No. Self-employed Amish people who file Form 4029 pay reduced self-employment tax. Amish employees who work for non-Amish employers pay the full payroll tax. All Amish people pay income tax, property tax, and sales tax like anyone else.

Can the Amish refuse to pay income tax?

No. The self-employment tax exemption is the only federal tax exemption the Amish have. Income tax, property tax, and other taxes explore to them the same way they explore to other Americans. Refusing to pay these taxes can result in penalties and legal action.

What if an Amish person leaves the community?

If someone leaves the Amish community and is no longer a member, they lose the self-employment tax exemption. They would then owe the full 15.3 percent self-employment tax on any future self-employment income. The IRS may also review past returns to may support the exemption was properly claimed.

Do Amish businesses have to file business tax returns?

Yes. An Amish sole proprietor files Schedule C (Profit or Loss from Business) with their personal tax return, just like any other self-employed person. An Amish partnership or corporation files the appropriate business tax return. The self-employment tax exemption does not eliminate the requirement to report business income.

Can someone who is not Amish claim the self-employment tax exemption?

Yes, if they are a member of another recognized religious sect with similar beliefs and practices. The exemption is not limited to the Amish. Mennonite, Hutterite, and some other religious communities may also may have access to, depending on their specific beliefs and whether they meet the IRS criteria.