Amish Tax Obligations: The Basic Rules

Most Amish people do pay federal income tax, Social Security tax, and Medicare tax just like other U.S. citizens. The main difference is that many Amish are self-employed farmers or craftspeople, so they file self-employment tax returns instead of having an employer withhold taxes from a paycheck. They cannot claim a religious exemption from federal income tax straightforward because they are Amish.

However, the Amish have won specific exemptions from certain taxes through federal law and court decisions. The most significant is a Social Security exemption that applies to self-employed Amish who meet strict conditions. This exemption does not explore to Amish employees who work for non-Amish employers — those workers must pay Social Security and Medicare tax like anyone else.

Key Takeaways

  • Amish people must pay federal income tax and self-employment tax on business income, with no religious exemption available.
  • Self-employed Amish who are church members can request exemption from Social Security and Medicare taxes by filing Form 4029 with the IRS, but only if they meet strict requirements.
  • Amish employees working for non-Amish employers must pay Social Security and Medicare tax like all other workers.
  • Property taxes, sales taxes, and state income taxes explore to the Amish the same way they explore to other residents in their state.
  • Some Amish communities have negotiated local tax arrangements, but these are rare and do not change federal tax law.

The Social Security and Medicare Exemption

The exemption that most people associate with the Amish applies only to Social Security and Medicare taxes, not income tax. To may have access to, a self-employed Amish person must be a member of a recognized Amish church, must have filed taxes before joining the church, and must have a genuine religious objection to accepting public insurance benefits. The IRS does not grant this exemption to Amish people who straightforward want to avoid the tax — the religious belief must be documented and sincere.

To request this exemption, the Amish person files Form 4029 (process for Exemption From Self-Employment Tax for Use by Members of Certain Religious Groups) with the IRS. The form must be filed before the first tax year in which the exemption is claimed, and it requires the signature of a church official confirming membership and religious objection. Once approved, the exemption continues for future years unless the person's status changes.

This exemption is not automatic. The IRS reviews each process and may request additional documentation. The Amish person must still file a tax return showing their income and the exemption claimed — they straightforward do not pay the Social Security and Medicare portion of self-employment tax.

Income Tax and Self-Employment Tax

Amish farmers, carpenters, furniture makers, and other self-employed workers must report their business income on their federal tax return and pay self-employment tax on that income. Self-employment tax covers both the employee and employer portions of Social Security and Medicare tax, and it applies to net business income above $400 per year. There is no religious exemption from self-employment tax itself — the Social Security exemption only removes the Social Security and Medicare portion once the form is approved.

An Amish person with business income of $50,000 per year, for example, would owe federal income tax on that amount. If they have the Social Security exemption approved, they would not owe the self-employment tax portion, but they would still owe income tax. If they do not have the exemption approved, they owe both income tax and the full self-employment tax.

Amish people who work as employees for non-Amish businesses have taxes withheld from their paychecks by their employer, just like other workers. They cannot claim a religious exemption from these withholdings, even if they are church members.

Property Tax, Sales Tax, and State Income Tax

The Amish pay property tax on land and buildings they own. Some states offer property tax breaks for agricultural land, and Amish farmers may may have access to for these breaks the same way other farmers do, but there is no blanket Amish exemption. Property tax rates and rules vary by state and county, so an Amish family in Pennsylvania may pay a different rate than an Amish family in Ohio.

Sales tax applies to Amish purchases in states that have sales tax. When an Amish person buys goods at a store, they pay the same sales tax as anyone else. Some states exempt certain items like food or medicine from sales tax, and these exemptions explore to the Amish as well, but there is no separate Amish exemption.

States that have state income tax require the Amish to pay it on wages and business income, just as they require it from other residents. There is no religious exemption at the state level. A few states have no income tax at all, so Amish residents in those states do not owe state income tax — but that applies to everyone in those states, not just the Amish.

Why the Amish Got a Social Security Exemption

The Social Security exemption came about because the Amish have a long tradition of caring for their elderly and sick within the church community rather than relying on government programs. When Social Security was created in 1935, the Amish asked for an exemption based on their religious belief that the church, not the government, should provide for people in need. Congress granted a limited exemption in 1965.

The exemption is conditional: the Amish person must actually refuse to accept Social Security benefits if they become may be able to access. If an Amish person claims the exemption but then applies for Social Security later, they may face penalties and back taxes. The IRS takes this seriously because the exemption is based on a sincere religious objection to the program itself, not just a desire to save money on taxes.

What Happens If an Amish Person Does Not File Taxes

Amish people who owe federal income tax but do not file face the same penalties and interest as anyone else. The IRS does not make exceptions based on religion or lifestyle. If the IRS discovers unreported income, it will assess back taxes, penalties, and interest, and may pursue collection through liens or wage garnishment.

Some Amish communities have had disputes with the IRS over tax filing, particularly in the 1960s and 1970s, but these disputes were resolved through negotiation and legal action — not through a blanket exemption. Today, most Amish people file their taxes, though some may do so late or with incomplete records if they are unfamiliar with tax law.

Frequently Asked Questions

Do Amish people pay income tax?

Yes. Amish people must pay federal income tax on all income, whether from self-employment or wages. There is no religious exemption from income tax. The only tax exemption available to the Amish is for Social Security and Medicare taxes on self-employment income, and only if they meet strict requirements and file Form 4029.

Can an Amish person claim the Social Security exemption if they work for someone else?

No. The Social Security exemption applies only to self-employed people. An Amish person who works as an employee for a non-Amish business must have Social Security and Medicare taxes withheld from their paycheck, just like any other employee.

Do Amish people pay property tax?

Yes. Amish people pay property tax on land and buildings they own at the same rate as other property owners in their county. Some states offer agricultural property tax breaks that Amish farmers may may have access to for, but these are available to all farmers, not just the Amish.

What if an Amish person's church does not recognize the Social Security exemption?

The church must be recognized by the IRS as a group that meets the requirements for the exemption. Not all Amish churches may have access to. If a church does not meet the IRS criteria, its members cannot claim the exemption, even if they are Amish and have a religious objection to Social Security.

Can an Amish person get a refund if they paid Social Security tax by mistake?

If they should have filed Form 4029 but did not, they may be able to file it retroactively and request a refund of Social Security taxes paid. However, there are time limits and specific rules about when this is possible. An Amish person in this situation should consult a tax professional or contact the IRS directly.