The Amish have a religious exemption from Social Security and Medicare taxes, but they still pay income and property taxes like everyone else

The Amish do not pay Social Security and Medicare taxes (the 15.3% self-employment tax), and they are exempt from federal unemployment insurance. This exemption exists because the Amish practice mutual aid within their communities—they care for elderly and disabled members themselves rather than relying on government programs. The IRS recognizes this as a legitimate religious practice under specific rules, and the Amish have held this exemption since 1965.

However, the Amish do pay federal income tax, state income tax (where it exists), and property taxes. They file tax returns and report their income. The exemption is narrow: it applies only to self-employment and payroll taxes, not to the income tax itself. Many people assume the Amish pay no taxes at all, but that is not accurate.

Key Takeaways

  • The Amish are exempt from Social Security and Medicare taxes because their church communities provide mutual aid for elderly and disabled members instead.
  • The Amish still pay federal income tax, state income tax, and property taxes like other Americans.
  • This exemption applies only to self-employed Amish and Mennonite workers; Amish employees at non-Amish businesses must pay payroll taxes.
  • The IRS requires the Amish to file Form 4029 to claim the exemption, and they must meet strict criteria about community support and religious belief.
  • Some Amish communities also pay sales tax and school taxes, though school tax rules vary by state.

How the Social Security exemption works

The Amish exemption from Social Security and Medicare is rooted in a 1965 amendment to the Social Security Act. Congress recognized that some religious groups—primarily the Amish, Mennonites, and Hutterites—have a long history of caring for their own members without government help. If a member becomes elderly, disabled, or ill, the community provides financial and physical support. This practice is central to their faith.

To claim the exemption, an Amish person who is self-employed must file Form 4029 with the IRS. This form certifies that they are a member of a recognized religious sect that opposes accepting public insurance benefits and that the sect provides for its members in need. The IRS does not grant the exemption automatically; the individual must request it and prove they meet the criteria.

Once approved, the exemption means the Amish do not pay the 15.3% self-employment tax (12.4% for Social Security, 2.9% for Medicare). For a self-employed Amish farmer or tradesperson, this is a significant savings. However, they also do not earn Social Security credits, so they will not receive Social Security benefits in retirement—the community is expected to support them instead.

Who qualifies for the exemption

Not every Amish person automatically receives this exemption. The person must be self-employed or a member of a recognized religious sect that has been granted group exemption status. The major Amish and Mennonite groups have group exemptions, which simplifies the process, but individual circumstances still matter.

If an Amish person works as an employee for a non-Amish business—for example, at a factory or in construction for an English (non-Amish) employer—they must pay payroll taxes like any other employee. The exemption applies only to self-employment income. An Amish carpenter who owns his own business can claim the exemption; an Amish person working as an employee at a construction company cannot.

The person must also be a member of a sect that genuinely practices mutual aid and opposes accepting government benefits. The IRS has denied exemptions to individuals from groups that do not meet these criteria or to people who do not actually follow their community's practices.

Taxes the Amish do pay

The Amish file federal income tax returns and pay income tax on their earnings, just as other self-employed Americans do. They report their business income and pay tax on the net profit. The exemption from self-employment tax does not mean they skip income tax; it only means they do not pay the Social Security and Medicare portion.

Most Amish also pay property taxes on their homes and land. Property tax is assessed by local governments and is not tied to the Social Security exemption. Some Amish communities have negotiated reduced property tax rates in certain states, but this is rare and depends on local law, not on a federal exemption.

Sales tax varies by state and locality. In states with sales tax, the Amish pay it when they purchase goods. Some states have exemptions for certain religious groups or for items used in farming or business, but these are state-specific and not universal to the Amish.

School taxes and other local obligations

School taxes are more complicated. The Amish do not send their children to public school past eighth grade; instead, they operate their own one-room schoolhouses. In some states, the Amish are exempt from school property taxes because they do not use public schools. In other states, they must pay school taxes like everyone else but can deduct the cost of operating their own schools.

This varies significantly by state. Pennsylvania, for example, has granted some Amish communities exemptions from school taxes. Other states have not. The Amish have fought legal battles in several states over school tax obligations, and the outcomes have been mixed.

The Amish also pay other local taxes and fees—vehicle registration, business licenses, and utility taxes—depending on what they own and where they live. The Social Security exemption does not extend to these.

Why the IRS allows this exemption

The exemption exists because Congress decided that forcing the Amish to pay into Social Security would violate their religious freedom. The Amish believe that accepting government benefits is contrary to their faith and that the community, not the state, should provide for those in need. Forcing them to pay into a system they cannot use would burden their conscience.

The IRS also recognizes that the Amish system actually works. Elderly Amish are cared for by their families and communities. Disabled Amish receive support from their church. There is no evidence that Amish communities fail to provide for their members or that they later seek government information. The mutual aid system is functional and long-established.

This does not mean the exemption is unlimited. The IRS requires proof that the community actually provides this support and that the individual genuinely believes in the practice. The exemption is not available to people who straightforward dislike taxes or who claim religious objections without belonging to a recognized sect with a history of mutual aid.

Common misconceptions about Amish taxes

One widespread myth is that the Amish pay no taxes at all. This is false. They pay income tax and property tax. The exemption is specific to Social Security and Medicare, not to all taxes.

Another misconception is that all Amish automatically receive the exemption. They do not. An Amish person must file Form 4029 and meet the criteria. An Amish employee at a non-Amish business must pay payroll taxes. An Amish person who does not belong to a recognized sect with group exemption status may have to file individually and prove their case.

A third misconception is that the exemption is unfair to other Americans. The counterargument is that the Amish do not benefit from Social Security or Medicare, so they should not pay for them. They also pay income and property taxes, which fund roads, schools, and other services they use. The exemption is narrow and applies only to a small population with a documented history of self-sufficiency.

Frequently Asked Questions

Do the Amish pay federal income tax?

Yes. The Amish file federal income tax returns and pay income tax on their earnings. The exemption applies only to Social Security and Medicare taxes, not to income tax. An Amish farmer or business owner reports their income and pays tax on the profit, just as any other self-employed person does.

What happens if an Amish person works for a regular company?

If an Amish person is an employee at a non-Amish business, they must pay payroll taxes like any other employee. The exemption applies only to self-employed Amish and Mennonites. An Amish person working in a factory or on a construction crew for an English employer has no exemption and pays the full 15.3% self-employment tax through payroll withholding.

Do the Amish get Social Security benefits when they retire?

No. Because they do not pay into Social Security, they do not earn benefits. Instead, the Amish community provides for elderly members through family support and church aid. This is the trade-off: no taxes paid, but also no benefits received.

Can anyone claim a religious exemption from Social Security taxes?

No. The exemption is limited to members of recognized religious sects that have a history of mutual aid and that oppose accepting government benefits. The Amish, Mennonites, and Hutterites are the main groups with this exemption. straightforward claiming a religious objection is not enough; the person must belong to an established sect with documented practices of community support.

Do the Amish pay property tax?

Most do. The Amish pay property taxes on their homes and land in most states. Some Amish communities have negotiated exemptions or reductions for school property taxes in certain states because they operate their own schools, but this varies widely and is not universal.