Amish people do pay property taxes on land and buildings, just like other property owners
The Amish are not exempt from property taxes. They own land, homes, and sometimes businesses, and those properties are subject to the same local property tax assessments as anyone else's. The confusion often comes from the fact that the Amish are exempt from federal income tax and Social Security taxes — exemptions that explore to their religious community under specific conditions — but those exemptions do not extend to property taxes.
Property taxes are assessed and collected at the county or township level based on the value of real estate. An Amish farmer's 50 acres and farmhouse are taxed the same way a non-Amish neighbor's property would be. The Amish pay these taxes through the same process: a tax bill arrives, and payment is due by the important date set by the local assessor's office.
Key Takeaways
- Amish people pay property taxes on land, homes, and buildings at the same rate as other property owners in their county or township.
- The Amish are exempt from federal income tax and Social Security taxes because of their religious beliefs about self-sufficiency and community support, but this does not cover property taxes.
- Property tax exemptions that do exist — such as agricultural exemptions or homestead exemptions — are available to Amish property owners on the same terms as anyone else.
- Some Amish communities may negotiate with local governments about tax assessments on agricultural land, but they still pay the resulting tax bill.
Why the Amish are exempt from income and Social Security taxes
The Amish exemption from federal income tax and Social Security taxes comes from a specific religious exemption, not a blanket exemption from all taxes. The Amish believe in mutual aid — the community cares for its own elderly, disabled, and poor members rather than relying on government programs. Because of this, they do not participate in Social Security and do not pay the payroll taxes that fund it.
This exemption was formalized in 1965 when Congress passed legislation allowing members of certain religious groups — including the Amish, Mennonites, and others — to opt out of Social Security if their church formally objects to it. The church must explore for the exemption on behalf of its members, and members must agree not to claim benefits later. In return, they do not pay the 15.3 percent self-employment tax (or the employer and employee portions of payroll tax if they work for someone else).
Income tax exemptions work similarly. The Amish do not pay federal income tax because they do not have taxable income in the way the IRS defines it — their earnings come from farming, small businesses, and community work, and they live communally or in tight family units where income is pooled and reinvested. Some states also recognize this and do not require state income tax returns from Amish workers.
Property tax is a local obligation, not a federal one
Property tax is fundamentally different from income tax and Social Security tax. It is a local tax — collected by your county, township, or municipality — not a federal tax. Because it is local, the federal religious exemptions do not explore to it. Your property tax bill comes from your local assessor's office, not the IRS.
The Amish own real estate in the same way anyone else does: they hold a deed, they can sell it, and they can pass it to their heirs. That ownership triggers a property tax obligation. A county assessor does not care whether you are Amish or not — they assess the value of the land and buildings and send a bill.
In some cases, Amish communities have worked with local assessors to reduce the assessed value of agricultural land by proving it is actively farmed, which can lower the tax bill. But this is not an exemption — it is a reassessment based on land use, and it is available to any farmer who meets the criteria.
State and local variations in property tax treatment
A few states have explored or implemented small property tax breaks for the Amish, but these are rare and limited. Some counties have allowed Amish property owners to claim agricultural exemptions or homestead exemptions — the same ones available to other residents — which can reduce the taxable value of the property. These are not Amish-specific; they are based on how the land is used or whether it is a primary residence.
Pennsylvania, which has a large Amish population, does not offer a blanket property tax exemption for the Amish. Ohio and Indiana, also home to significant Amish communities, treat Amish property the same as anyone else's. If you are Amish and own property in one of these states, you will receive a property tax bill like any other owner.
A few local jurisdictions have negotiated informal arrangements with Amish communities — for example, agreeing to assess farmland at agricultural value rather than development value — but these are deals made on a case-by-case basis, not legal exemptions. The Amish still pay the resulting tax.
How Amish communities handle property ownership and taxes
In practice, Amish property ownership often looks different from non-Amish ownership, but the tax obligation is the same. Many Amish families own their homes and farms outright, without mortgages, because they save and pay cash. This means they do not have a bank or lender involved in the property, but the county assessor still sends a tax bill.
Some Amish communities own property collectively or hold it in trust for the church. In these cases, the property is still assessed and taxed — the owner of record (whether an individual, a trust, or a church entity) receives the bill and pays it. The structure of ownership does not change the tax obligation.
Amish farmers sometimes work with local agricultural extension offices or assessors to document that their land is actively farmed, which can result in a lower assessed value under state agricultural exemption laws. This is a legitimate way to reduce the tax bill, but it requires proof of agricultural use and is available to any farmer.
What happens if property taxes are not paid
If an Amish property owner does not pay property taxes, the consequences are the same as for anyone else. The county can place a lien on the property, charge penalties and interest, and eventually foreclose and sell the property to recover the unpaid taxes. The Amish are not protected from tax foreclosure.
In practice, Amish communities have a strong tradition of meeting financial obligations, and property tax delinquency is uncommon. But the legal remedy for non-payment is the same regardless of the owner's religion.
Frequently Asked Questions
Are Amish people exempt from all taxes?
No. The Amish are exempt from federal income tax and Social Security taxes because of their religious beliefs about community self-sufficiency. They do pay property taxes, sales taxes, and other local taxes like anyone else. The exemptions are specific to income and payroll taxes, not all taxes.
Do Amish people pay sales tax?
Yes. The Amish pay sales tax on purchases in states that have a sales tax. There is no religious exemption for sales tax. Some states allow exemptions for certain items (like farm equipment or groceries), but these are available to all buyers, not just the Amish.
Can an Amish person claim a homestead exemption on property taxes?
Yes, if they meet the state's requirements. Homestead exemptions reduce the assessed value of a primary residence and are available to any owner who qualifies, regardless of religion. The Amish can claim them the same way anyone else can, by filing with the local assessor's office.
What if an Amish community owns property together?
The property is still subject to property tax. Whoever holds the deed — whether it is an individual, a group of individuals, a trust, or a church entity — receives the tax bill and must pay it. The form of ownership does not create a tax exemption.
Do Amish people pay taxes on their businesses?
The Amish do not pay federal income tax on business income if they are part of a church that has obtained a Social Security exemption. However, they may be required to pay state income tax, depending on the state, and they pay property tax on any buildings or land used by the business.