Amish people pay most taxes, but not all

The Amish do pay federal income tax, state income tax, and property tax like other Americans. They file tax returns, report wages, and owe the same rates as anyone else in their income bracket. The difference is narrower than many people think: the Amish are exempt from Social Security and Medicare taxes (FICA), and most Amish do not pay into unemployment insurance because they are self-employed or work within their community.

The exemption from Social Security and Medicare is not automatic. The Amish must request it from the IRS by filing Form 4029, which requires proof that their church teaches against accepting government benefits. Once approved, they stop paying the 15.3 percent combined FICA tax on self-employment income. This exemption applies only to people who are members of a recognized Anabaptist sect — primarily the Amish, Mennonites, and Hutterites — and who have never received Social Security benefits.

Amish communities also negotiate with local governments on property taxes in some cases. A few counties have reached agreements that lower the tax rate for Amish farmland in exchange for conservation practices or community service. These are local arrangements, not federal law, and they vary widely by location.

Key Takeaways

  • The Amish pay federal income tax, state income tax, and property tax at the same rates as other Americans.
  • They are exempt from Social Security and Medicare taxes if they file Form 4029 with the IRS and belong to a recognized Anabaptist church that forbids accepting government benefits.
  • Once approved for FICA exemption, the Amish do not pay into these programs and cannot later claim Social Security or Medicare benefits.
  • Some local governments have negotiated lower property tax rates for Amish farmland, but this is not a blanket exemption and depends on where they live.
  • The Amish still owe sales tax, excise tax, and other consumption taxes like any other resident.

How the Social Security exemption works

To be exempt from Social Security and Medicare taxes, an Amish person must be a member of a church that teaches against accepting government benefits and must file Form 4029 with the IRS. The form asks for the name and address of the church, the date the person joined, and a statement that the church opposes accepting benefits. The IRS reviews the request and either approves or denies it.

Approval is not may provide. The IRS has denied exemptions to people who belong to churches that do not have a clear, documented history of refusing government aid. Once the exemption is granted, it stays in effect for life unless the person later receives Social Security or Medicare benefits, which cancels the exemption permanently.

The trade-off is significant: Amish people who are exempt from FICA do not build up Social Security credits and cannot claim retirement, disability, or survivor benefits later. They also cannot use Medicare. This works because Amish communities traditionally care for elderly and disabled members through family and church support rather than government programs.

Income tax and self-employment tax

The Amish pay federal income tax on wages and self-employment income just like anyone else. If an Amish person works for a non-Amish employer, their employer withholds federal income tax from their paycheck. If they are self-employed — which most Amish are, running farms, carpentry businesses, or craft shops — they file Schedule C with their tax return and pay self-employment tax on net income.

The self-employment tax rate is 15.3 percent (12.4 percent for Social Security, 2.9 percent for Medicare). Amish people who have been approved for FICA exemption do not pay this tax. Those who have not filed for exemption, or whose exemption was denied, pay the full rate like other self-employed people.

State income tax varies by state. Amish in states with no income tax (such as Florida, Texas, or Wyoming) do not owe state income tax. Amish in states with income tax (such as Pennsylvania, Ohio, or Indiana, where many Amish live) pay the same rate as other residents.

Property tax and local agreements

The Amish pay property tax on land and buildings at the rate set by their county or township. There is no federal exemption for Amish property. However, some local governments have created special arrangements. In Lancaster County, Pennsylvania, for example, some Amish farmland is taxed at a lower rate in exchange for participation in farmland preservation programs. These deals are negotiated between individual communities and local assessors, not mandated by law.

A few counties have also allowed Amish to pay a flat fee or reduced rate instead of the standard property tax, recognizing that Amish land is often farmed intensively and generates less commercial value than suburban development. These arrangements are rare and depend entirely on local policy. An Amish family moving to a new county cannot assume they will receive the same treatment.

Amish also pay taxes on any commercial buildings or rental properties they own. A carpentry shop or a bed-and-breakfast run by an Amish family is taxed like any other business property in the area.

Sales tax and other consumption taxes

The Amish pay sales tax on purchases like everyone else. When an Amish person buys groceries, clothing, or supplies at a store, they pay the state and local sales tax rate. Some states exempt certain items (like food or medicine) from sales tax, and the Amish benefit from these exemptions the same way other shoppers do.

The Amish also pay excise taxes on fuel, alcohol, and tobacco if they purchase these items. They pay vehicle registration fees and driver's license fees (though many Amish do not drive cars and therefore do not pay these fees). They pay utility taxes and phone taxes if they use these services.

One area where the Amish sometimes differ is in how they report cash income. Because many Amish businesses operate on a cash basis and keep minimal records, there is a higher rate of underreporting income in some communities. This is not a legal exemption — it is tax evasion — and the IRS has conducted audits and enforcement actions against Amish businesses for this reason.

Why the Amish sought exemption from Social Security

The Amish requested exemption from Social Security in the 1950s because their faith teaches self-sufficiency and community mutual aid rather than reliance on government programs. Accepting Social Security would mean accepting a government benefit, which conflicts with Anabaptist theology. The Amish also believe that paying into a system they will not use is wasteful.

Congress granted the exemption in 1965 as part of amendments to the Social Security Act. The law recognized that certain religious groups have a long history of caring for their own members and do not need government support. The exemption was extended to self-employed people in 1988. Today, roughly 90 percent of Amish people have filed for and received FICA exemption.

The exemption is not unique to the Amish. Mennonites, Hutterites, and some other Anabaptist groups also may have access to. A few other religious groups, such as certain Quaker communities, have sought similar exemptions, though the rules are strict and most requests are denied.

What happens if an Amish person needs government benefits

If an Amish person becomes disabled or reaches retirement age and has not built up Social Security credits, they cannot claim Social Security benefits. They also cannot use Medicare. This is by design: the Amish choose the exemption knowing they will not have access to these programs.

In practice, Amish communities support elderly and disabled members through family care, church information, and community fundraising. If an Amish person faces a medical emergency or catastrophic expense, the community often holds a benefit auction or fundraiser. This system works because Amish communities are tight-knit and because the Amish typically have large families and extended family networks.

If an Amish person leaves the church or moves away from their community, they may find themselves without Social Security credits and without community support. This is one reason why leaving the Amish church is a difficult decision with long-term financial consequences.

Frequently Asked Questions

Do the Amish have to file tax returns?

Yes. Amish people who earn income above the filing threshold must file a federal tax return, just like other Americans. The threshold depends on age and filing status but is typically around $13,000 for a single person. State income tax returns are required in states that have income tax and where the Amish person's income exceeds the state threshold.

Can an Amish person get Social Security if they change their mind later?

No. Once an Amish person receives FICA exemption and stops paying into Social Security, they cannot later decide to pay in and claim benefits. The exemption is permanent. If they leave the Amish church and want to start paying Social Security tax, they can do so going forward, but they will not receive credit for the years they were exempt.

Do Amish businesses pay business income tax?

Yes. An Amish carpentry shop, farm, or other business must report income and pay federal income tax on profits. The business owner files Schedule C (self-employment) or a business tax return depending on how the business is structured. They also pay self-employment tax unless they have FICA exemption.

Are Amish exempt from property tax?

No, not federally. The Amish pay property tax on land and buildings at the rate set by their local government. Some counties have negotiated lower rates for Amish farmland as part of conservation programs, but this is a local arrangement, not a blanket exemption.

What if an Amish person works for a non-Amish employer?

If an Amish person is employed by a non-Amish company, their employer withholds federal income tax from their paycheck. The employer also withholds Social Security and Medicare tax unless the employee has filed Form 4029 and received FICA exemption. Even with exemption, the employee must provide proof to their employer, usually by filing Form W-4 with a note about the exemption.