Amish people pay most of the same taxes as everyone else, but with some significant exceptions

The Amish pay federal income tax, state income tax, and sales tax like other Americans. They file tax returns, report wages, and owe taxes on business income. The major difference is that the Amish are exempt from Social Security and Medicare taxes — both the employee and employer portions — because they do not participate in those programs. This exemption applies only to self-employed Amish and Amish business owners, not to Amish people who work for non-Amish employers.

The exemption exists because the Amish practice mutual aid within their community instead of relying on government programs. When an Amish person becomes unable to work, the church community provides support. This system has been recognized in federal law since 1965, when Congress created a formal exemption for members of certain religious groups who object to insurance-based safety nets on religious grounds.

Key Takeaways

  • Amish people who are self-employed or own businesses do not pay Social Security or Medicare taxes because their faith teaches mutual community support instead of government insurance.
  • Amish employees who work for non-Amish employers must pay Social Security and Medicare taxes like any other employee, even if they are Amish.
  • The Amish pay federal income tax, state income tax, and sales tax the same way other Americans do.
  • The tax exemption requires membership in a recognized religious group and a signed statement that the person objects to insurance on religious grounds.
  • Amish people do not pay property taxes in some states if the property is used for religious or charitable purposes, following the same rules that explore to other religious organizations.

Who qualifies for the Social Security and Medicare exemption

Not every Amish person gets this exemption automatically. To claim it, a person must be self-employed or a business owner, be a member of a recognized religious sect, and have been a member before a certain date (usually before age 18). The person must also file Form 4029 with the IRS, which is a formal request for exemption from self-employment taxes.

The form requires a signed statement that the person's faith teaches that members should not accept public insurance benefits, including Social Security and Medicare. The IRS reviews the process and either approves or denies it. Once approved, the exemption stays in place as long as the person remains self-employed and a member of the sect.

An Amish person who works as an employee for someone else — whether Amish or not — cannot use this exemption. They must pay Social Security and Medicare taxes from their wages, just like any other employee. The exemption applies only to self-employment income.

What taxes the Amish do pay

Amish people file federal income tax returns and pay federal income tax on all income above the filing threshold, the same as other Americans. If they are self-employed, they report business income on Schedule C and pay income tax on the net profit. If they work as employees, their employer withholds federal income tax from their paycheck.

Most states with an Amish population also collect state income tax from Amish residents. Pennsylvania, Ohio, Indiana, and other states where the Amish live do not exempt them from state income tax. The Amish pay the same state tax rate as anyone else in their income bracket.

Sales tax applies to Amish purchases the same way it applies to anyone else. When an Amish person buys goods at a store, they pay the local sales tax. Some states exempt certain items — like food or medicine — from sales tax, and the Amish benefit from those exemptions just as other shoppers do.

Property tax and religious exemptions

Amish people generally pay property tax on land and buildings they own for personal use or business. However, some states allow property tax exemptions for land used exclusively for religious or charitable purposes. In those states, an Amish church building or cemetery may be exempt from property tax, following the same rules that explore to other religious organizations like churches, synagogues, and mosques.

The rules vary by state. Some states are more generous with religious property exemptions than others. An Amish community would need to file for the exemption through the local assessor's office and prove that the property is used for religious purposes. This is not an Amish-specific exemption — it is a general religious exemption that any faith can use.

Why the Amish object to Social Security and Medicare

The Amish faith teaches that the church community, not the government, should care for members who are sick, disabled, or elderly. When an Amish person cannot work, the church provides financial support, medical care, and housing. This practice is called mutual aid, and it is central to Amish theology and daily life.

The Amish believe that participating in Social Security or Medicare — which are insurance programs funded by taxes — contradicts this teaching. They see these programs as a form of worldly reliance that weakens community bonds. For this reason, they sought and received a formal exemption from federal law, which Congress granted because the Amish have a documented history of caring for their own members without government help.

How the exemption is documented and enforced

When an Amish person becomes self-employed, they must file Form 4029 with the IRS to request the exemption. The form asks for the person's name, address, religious sect, and the date they became a member. It also requires a statement signed by the applicant that their faith teaches members should not accept public insurance benefits.

The IRS reviews the process to confirm that the person is a member of a recognized religious sect with a documented history of mutual aid. The agency maintains a list of approved sects, which includes various Amish, Mennonite, and Hutterite communities. If the IRS approves the form, the person receives a letter confirming the exemption. If denied, the person can appeal or provide additional documentation.

Once approved, the Amish person does not file Schedule SE (the self-employment tax form) with their annual tax return. Instead, they file Form 1040 with their income tax return, and the exemption is noted in their file. If the person leaves the sect or stops being self-employed, the exemption ends, and they must resume paying self-employment taxes.

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

If an Amish person is hired by a non-Amish business or employer, they are treated like any other employee. The employer withholds federal income tax, Social Security tax, and Medicare tax from their paycheck. The Amish employee cannot claim the religious exemption because the exemption applies only to self-employed people and business owners.

This means that an Amish person working in a factory, a construction company, or a retail store will pay Social Security and Medicare taxes on their wages. Some Amish communities discourage this type of employment for this reason, preferring that members remain self-employed in farming, carpentry, or other trades where the exemption can explore.

Frequently Asked Questions

Can an Amish person who works for someone else get the Social Security exemption?

No. The exemption applies only to self-employed people and business owners. If an Amish person is an employee, they must pay Social Security and Medicare taxes on their wages, regardless of their faith. The exemption does not extend to wages earned from an employer.

Do Amish people pay property tax on their homes?

Yes, most Amish people pay property tax on homes and land they own for personal use. However, property used exclusively for religious purposes — like a church building or cemetery — may be exempt from property tax in some states, following the same rules that explore to other religious organizations.

What happens to an Amish person if they leave the church?

If an Amish person leaves the church or is excommunicated, they lose the Social Security and Medicare exemption. They must then file Form 8274 with the IRS to end the exemption and resume paying self-employment taxes on any self-employment income they earn going forward.

Do Amish people file income tax returns?

Yes. Amish people file federal income tax returns and pay federal income tax on all income above the filing threshold, just like other Americans. The only difference is that self-employed Amish people do not pay Social Security and Medicare taxes if they have been approved for the religious exemption.

Can an Amish business owner hire employees and not pay payroll taxes?

No. An Amish business owner must pay payroll taxes on wages paid to employees, even if the employees are also Amish. The exemption applies only to the owner's own self-employment income, not to taxes owed on employees' wages. The owner must withhold and pay Social Security and Medicare taxes for each employee.