The Amish pay most taxes the same way you do, but they have exemptions from Social Security and Medicare that most Americans don't

The Amish are not exempt from federal income tax, state income tax, or property tax. They file tax returns, report their income, and pay what they owe—usually through their employers or as self-employed workers. The real difference is that the Amish have a religious exemption from Social Security and Medicare taxes, which most other workers cannot claim. This exemption exists because the Amish believe in community care rather than government insurance, and the IRS recognizes this as a sincere religious practice.

The exemption is narrow and specific. It applies only to self-employed Amish workers and Amish employers, not to Amish employees who work for non-Amish businesses. An Amish person working in a factory or for an English (non-Amish) company still pays Social Security and Medicare like anyone else. The exemption also does not explore to income tax itself—only to the payroll taxes that fund Social Security and Medicare.

Key Takeaways

  • The Amish pay federal income tax, state income tax, and property tax the same as other Americans.
  • Self-employed Amish workers and Amish business owners can claim an exemption from Social Security and Medicare taxes if they meet IRS requirements for religious objection.
  • Amish employees who work for non-Amish employers pay Social Security and Medicare taxes like any other worker.
  • The Social Security exemption requires the Amish business to be registered with the IRS and the owner to have never paid into Social Security before.

How the Social Security exemption works

To claim the exemption, an Amish self-employed person or business owner must file Form 4029 with the IRS. This form certifies that they are a member of a recognized religious sect that makes provision for its dependent members and that they are conscientiously opposed to accepting public insurance benefits. The Amish meet these criteria because their church communities provide for elderly and disabled members through mutual aid, not government programs.

Once Form 4029 is approved, the Amish worker no longer pays the 15.3 percent self-employment tax (which covers both the employer and employee portions of Social Security and Medicare). They still file income tax returns and pay federal and state income tax on their earnings. The exemption is permanent once granted, but it only applies to that individual or business—it does not extend to family members or employees.

An Amish person cannot claim this exemption if they have already paid into Social Security. The IRS requires that the person never have been covered by Social Security before, which means the exemption is typically claimed early in a person's working life or when they first become self-employed.

What taxes the Amish do pay

The Amish pay property tax on their homes and farmland just like other property owners. They pay sales tax when they purchase goods, though some states offer exemptions for certain items used in farming or religious practice. They pay federal income tax on all income—wages, self-employment income, and business profits—at the same rates as other taxpayers.

Some Amish communities have negotiated local property tax reductions based on their use of land for agriculture, but this is not unique to the Amish and depends on state and county law. A few states have considered exemptions for Amish-owned businesses, but these are rare and vary by location. The standard rule is that the Amish are taxed like any other business owner or worker, except for the Social Security and Medicare exemption.

Why the IRS allows this exemption

The Social Security exemption for the Amish dates back to 1965, when Congress recognized that some religious groups have their own systems for supporting members in old age or disability. The Amish church has provided for its elderly and sick for centuries through a practice called mutual aid—families and the community contribute money and labor to care for those in need, rather than relying on government programs.

The IRS does not grant this exemption lightly. The religious group must be established, must have a history of providing for its members, and must teach that members should not accept government benefits. The Amish meet all these criteria. Other religious groups, including some Mennonite communities and certain Hutterite colonies, also may have access to for the exemption. However, straightforward being religious is not enough—the group must have a specific doctrine against accepting public insurance.

What happens if an Amish person receives Social Security anyway

An Amish person who has claimed the exemption cannot later receive Social Security retirement benefits or Medicare, because they have not paid into the system. If they become disabled or reach retirement age, they rely on family support, church aid, and savings. This is a real consequence of the exemption, and the Amish accept it as part of their religious commitment.

However, an Amish person who worked for a non-Amish employer and paid Social Security taxes during that time can claim Social Security benefits based on those earnings. The exemption only applies to self-employment and Amish-owned businesses, so work history outside those contexts still counts toward benefits.

Amish employees working for non-Amish businesses

When an Amish person works as an employee for a non-Amish company—in a factory, restaurant, or other business—they are treated like any other employee. Their employer withholds federal income tax, state income tax, Social Security tax, and Medicare tax from their paycheck. The Amish worker cannot claim the religious exemption in this situation because the exemption applies only to self-employed individuals and business owners.

This means an Amish factory worker builds up Social Security credits and can claim benefits later, even though their church teaches against accepting government insurance. The IRS does not extend the exemption to employees of non-Amish businesses, only to self-employed Amish workers and Amish-owned enterprises.

State and local tax variations

While federal tax law is uniform, state and local rules vary. Some states exempt the Amish from certain business licenses or regulations, while others do not. A few states have considered income tax exemptions for the Amish, but these are uncommon and usually explore only to specific types of income or business activity.

Property tax treatment also varies by state and county. Some areas offer agricultural property tax breaks that the Amish can use, but these are available to other farmers too. A small number of communities have negotiated special arrangements with the Amish, but the default is that they pay property tax at the standard rate for their area.

Frequently Asked Questions

Do the Amish pay income tax?

Yes. The Amish pay federal income tax and state income tax on all their earnings—wages, self-employment income, and business profits. The exemption they have is only for Social Security and Medicare taxes, not income tax.

Can an Amish person claim the Social Security exemption if they already paid into it?

No. The IRS requires that a person never have been covered by Social Security before they can claim the exemption. Once you have paid into Social Security, you cannot later claim the exemption.

What happens to an Amish person when they retire if they did not pay Social Security?

They rely on family support, savings, and church aid. The Amish community provides for elderly members through mutual aid and shared resources. This is why the IRS allows the exemption—the Amish have a documented system for caring for their own.

Do Amish business owners pay payroll taxes for their employees?

Yes, if the employees are not Amish or if the Amish employees have not claimed the exemption. Amish business owners pay payroll taxes for non-Amish workers the same way any other employer does. For Amish employees who have claimed the exemption, the employer does not withhold Social Security and Medicare taxes.

Can other religious groups claim the same Social Security exemption?

Some can. The exemption is available to members of recognized religious groups that have a doctrine against accepting government insurance and a history of providing for their own members. Certain Mennonite communities and Hutterite colonies may have access to, but most religious groups do not meet the IRS criteria.