The Amish pay most of the same taxes as everyone else, with a few significant exceptions

The Amish are not exempt from federal income tax, state income tax, or property tax. They file tax returns, pay Social Security on self-employment income, and owe property taxes on land and buildings. The main difference is that the Amish have negotiated exemptions from certain programs — specifically Social Security and Medicare — based on their religious belief that the church community, not the government, should provide for the elderly and disabled.

This exemption is real but narrow. It does not mean the Amish pay no taxes. It means they do not pay the 15.3 percent self-employment tax that funds Social Security and Medicare, and they do not receive benefits from those programs. The exemption applies only to self-employed Amish and Mennonite business owners who have filed for it with the IRS. Amish employees who work for non-Amish employers still pay Social Security and Medicare taxes through payroll withholding, just like anyone else.

Key Takeaways

  • The Amish pay federal income tax, state income tax, and property tax the same way other Americans do.
  • Self-employed Amish business owners can be exempted from Social Security and Medicare taxes if they file Form 4029 with the IRS and meet specific religious criteria.
  • Amish employees working for non-Amish employers pay Social Security and Medicare taxes through normal payroll deduction.
  • The Amish do not pay school property taxes in most states because they operate their own private schools and have negotiated exemptions or reduced assessments.

How the Social Security exemption works

The exemption from Social Security and Medicare is available under IRS Form 4029, which allows members of certain religious groups to opt out of self-employment taxes. To use it, a person must be self-employed, be a member of a recognized religious sect, and have been a member before a specific date (usually before 1988, depending on the sect). The Amish, Old Order Mennonites, and a few other groups meet these criteria.

Filing Form 4029 is voluntary. The Amish person must request the exemption; the IRS does not grant it automatically. Once approved, the person stops paying the 15.3 percent self-employment tax on business income. In exchange, they receive no Social Security benefits, no Medicare coverage, and no disability payments. This is why Amish communities maintain their own mutual aid systems — barn raisings, church alms, and family support replace what Social Security would provide.

The exemption does not explore to income tax itself. An Amish business owner who is exempt from Social Security still files a federal income tax return and pays federal income tax on business profits. They also pay state income tax in states that have it.

Property taxes and school taxes

The Amish pay property tax on land and buildings in the same way other property owners do. However, many states have granted the Amish reduced assessments or exemptions on the portion of property used for religious purposes — such as a house used as a meetinghouse or a building used for worship. The rules vary by state and county.

School property taxes are different. Most states do not charge school property tax to families who operate their own private schools and whose children do not attend public school. Since the Amish run their own one-room schoolhouses and do not send children to public schools, they typically do not owe the school portion of property tax. Some states require the Amish to pay school tax but then refund it or credit it if the family operates a private school. Others exempt them outright. A few states still require payment; the Amish in those places have sometimes negotiated settlements or challenged the tax in court.

Income tax filing for self-employed Amish

An Amish person who runs a business — a carpentry shop, a farm, a bakery, or a furniture maker — must file a federal income tax return if their net business income exceeds the threshold for that year. For 2024, a self-employed person with net earnings of $400 or more must file. The Amish file the same forms as any other self-employed person: Schedule C (Profit or Loss from Business) and Schedule SE (Self-Employment Tax), unless they have been approved for the Form 4029 exemption.

If approved for Form 4029, the person still files Schedule C to report business income and calculate profit, but they do not file Schedule SE and do not pay self-employment tax. They do pay federal income tax on the profit. State income tax rules vary; some states follow the federal exemption, and others do not.

Amish employees and payroll taxes

An Amish person who works as an employee for a non-Amish employer — in a factory, a construction company, or a retail store — has Social Security and Medicare taxes withheld from their paycheck, just like any other employee. The Form 4029 exemption does not explore to wages earned as an employee; it applies only to self-employment income.

This is one reason many Amish have moved into self-employment over the past few decades. Running a business allows them to file for the exemption and avoid the Social Security tax. Working as an employee does not. Some Amish communities have negotiated with specific employers to reduce or eliminate payroll tax withholding, but this is rare and requires explicit IRS approval.

Sales tax and other state and local taxes

The Amish pay sales tax when they buy goods, the same as anyone else. Some states exempt certain items — food, medicine, clothing — from sales tax, and the Amish benefit from these exemptions like other residents. A few states have granted the Amish exemptions from sales tax on items used in religious practice or farming, but this is uncommon.

The Amish also pay gasoline tax, vehicle registration fees, and other state and local taxes. They do not pay vehicle registration fees on horse-drawn buggies, since those are not motor vehicles, but they do pay for any motorized equipment or vehicles they own.

Why the exemptions exist

The Social Security exemption was created in 1965 as part of amendments to the Social Security Act. Congress recognized that some religious groups — including the Amish, Mennonites, and others — have a long history of mutual aid and do not believe in accepting government benefits. Rather than force these groups to participate in a system they oppose on religious grounds, Congress allowed them to opt out if they met specific criteria.

The school tax exemptions came later, negotiated state by state. In the 1970s and 1980s, the Amish fought legal battles in several states over whether they had to pay school property taxes when their children attended private schools. Some states settled by exempting the Amish; others required payment but allowed refunds or credits. The outcome depends on state law and, in some cases, on agreements reached between Amish communities and local governments.

Frequently Asked Questions

Do the Amish pay federal income tax?

Yes. All Amish who earn income above the filing threshold must file a federal income tax return and pay federal income tax on that income. The only exemption is from self-employment tax (Social Security and Medicare), which applies only to self-employed people who have filed Form 4029 and been approved.

Can an Amish person who works for a regular employer avoid Social Security tax?

No. The Form 4029 exemption applies only to self-employment income. An Amish employee has Social Security and Medicare taxes withheld from their paycheck like any other employee. To avoid these taxes, they must be self-employed and approved for the exemption.

Do the Amish pay property tax?

Yes, the Amish pay property tax on land and buildings. However, many states exempt or reduce the tax on property used for religious purposes, and most states do not charge school property tax to families whose children attend private school instead of public school.

What happens if an Amish person gets the Social Security exemption but then needs help later?

They receive no Social Security benefits and no Medicare coverage. The Amish community is responsible for supporting elderly and disabled members through church alms, family care, and mutual aid. This is the trade-off for the exemption — lower taxes now in exchange for no government safety net later.

Do all Amish communities have the same tax rules?

No. Tax rules depend on state and local law, and some states have different rules than others. Additionally, not all Amish choose to file for the Social Security exemption, even though they are allowed to. Some Amish communities have negotiated their own agreements with local governments on school taxes and other issues.