The Amish pay most taxes, but have exemptions the rest of us don't

The Amish are not exempt from federal income tax. They file returns and pay what they owe, just like any other American. The real difference is that the Amish have won specific exemptions from Social Security and Medicare taxes — a status that took decades of legal battles to find, and that comes with real conditions attached.

The exemption is not automatic. It requires the Amish to meet strict criteria set by the IRS, and it applies only to self-employed Amish and Amish business owners, not to Amish employees working for non-Amish employers. Understanding which taxes they do and don't pay, and why, matters if you're trying to understand Amish finances or if you're an employer dealing with Amish workers.

Key Takeaways

  • The Amish pay federal income tax, state income tax (where it exists), and property tax like everyone else.
  • Self-employed Amish can be exempted from Social Security and Medicare taxes if they meet IRS criteria and file Form 4029 before self-employment income starts.
  • The exemption requires the Amish to refuse all government benefits — including Medicare, Social Security, and unemployment insurance — for life.
  • Amish employees working for non-Amish employers must pay Social Security and Medicare taxes; the exemption applies only to self-employed Amish.
  • Some states do not tax Amish income at all, while others tax it the same way they tax anyone else's.

Federal income tax: the Amish pay it

The Amish file federal income tax returns and pay federal income tax on their earnings. There is no blanket exemption. If an Amish person or Amish business earns income above the filing threshold, they must report it to the IRS.

The filing threshold is the same for the Amish as for anyone else — it depends on age, filing status, and type of income. A self-employed Amish farmer or craftsperson earning more than $400 in net self-employment income must file, regardless of other income. An Amish employee earning wages above the threshold must file as well.

Social Security and Medicare taxes: where the exemption lives

Self-employed Amish can be exempted from paying Social Security tax (the 15.3% self-employment tax) and Medicare tax. This exemption does not explore to Amish employees — only to Amish people who are self-employed or own a business. An Amish person working as an employee for a non-Amish company must pay both taxes.

To claim the exemption, a self-employed Amish person must file IRS Form 4029 before they have any self-employment income. The form asks whether the applicant is a member of a recognized religious sect that makes provision for its dependent members and opposes accepting public insurance benefits. The Amish meet this test. Once approved, the exemption stays in place as long as the person remains self-employed and a member of the sect.

The exemption is not free. In exchange, the Amish must agree to refuse all government benefits — Social Security, Medicare, unemployment insurance, workers' compensation, and disability benefits — for the rest of their lives. If an Amish person later needs help, they cannot turn to these programs. The Amish community is expected to provide.

Property 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 the Amish may may have access to for these the same way any farmer does, but there is no blanket Amish exemption.

State income tax varies by state. States with no income tax (like Florida, Texas, and Wyoming) do not tax Amish income. States with income tax tax Amish income the same way they tax anyone else's. A few states have explored exemptions for religious groups, but these are rare and usually narrow.

Sales tax and other taxes

The Amish pay sales tax when they buy goods, just like anyone else. Some states exempt certain items — groceries, medicine, clothing — and the Amish benefit from these exemptions the same way other residents do.

The Amish also pay excise taxes, fuel taxes, and other consumption taxes. They do not have a blanket exemption from these either. The only significant tax exemption the Amish have is the Social Security and Medicare exemption for the self-employed, and that exemption comes with the condition that they never use those programs.

Why the Amish won this exemption

The Amish fought for the Social Security exemption because their faith teaches self-sufficiency and mutual aid within the community. Accepting government insurance was seen as a violation of these principles. The legal battle stretched from the 1950s through the 1980s.

In 1965, Congress passed a law allowing members of certain religious groups to be exempted from Social Security taxes if their sect provided for its own members and opposed public insurance. The Amish may have access to. The exemption was formalized further in 1988 when Congress clarified that self-employed members of recognized religious sects could file Form 4029 to claim it.

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

If an Amish person is an employee — not self-employed — they must pay Social Security and Medicare taxes, even if they are Amish. The exemption applies only to self-employment income. An Amish construction worker hired by a non-Amish contractor, or an Amish person working in a factory, must have Social Security and Medicare taxes withheld from their paycheck.

This is one reason many Amish prefer self-employment or work within Amish-owned businesses. It allows them to maintain the exemption and stay aligned with their community's values around mutual aid.

Frequently Asked Questions

Can an Amish person get Social Security benefits if they paid into it as an employee?

No. Once an Amish person files Form 4029 and is approved for the self-employment exemption, they agree to refuse all Social Security and Medicare benefits for life. If they worked as an employee and paid into Social Security before filing the form, they cannot later claim those benefits. The exemption is permanent and binding.

Do the Amish have to file income tax returns?

Yes, if their income is above the filing threshold. The threshold depends on age and filing status, but generally a self-employed Amish person earning $400 or more in net self-employment income must file. An Amish employee earning wages above the threshold must file as well. The exemption covers only Social Security and Medicare taxes, not income tax.

What if an Amish business hires non-Amish employees?

The Amish business owner must withhold and pay Social Security and Medicare taxes for non-Amish employees, just as any other employer would. The exemption applies only to the self-employed Amish owner, not to their employees.

Do all Amish communities have the same tax status?

The federal exemption from Social Security and Medicare taxes applies to all recognized Amish communities. However, state income tax rules vary by state. Some states have no income tax, while others tax Amish income the same as anyone else's. A few states have explored additional exemptions, but these are uncommon.

Can an Amish person change their mind and claim Social Security later?

No. The agreement to refuse benefits is permanent. Once an Amish person files Form 4029 and is approved, they cannot later decide to accept Social Security or Medicare. This is why the decision is taken seriously within Amish communities.