The Amish have a religious exemption from Social Security and Medicare taxes

The Amish don't pay Social Security or Medicare taxes because federal law grants them a religious exemption. This exemption exists because the Amish faith teaches that members should rely on their community for support in old age and hardship, not on government programs. The law recognizes this as a sincere religious belief and allows Amish employers and self-employed Amish workers to opt out of these two specific taxes.

However, the Amish still pay income tax, property tax, and sales tax like everyone else. The exemption is narrow and applies only to Social Security (FICA) and Medicare withholding. Many people assume the Amish pay no taxes at all, but that's not accurate. They straightforward don't contribute to federal social insurance programs because their faith community provides that safety net instead.

Key Takeaways

  • The Amish receive a federal religious exemption from Social Security and Medicare taxes only, not from income tax or property tax.
  • This exemption exists because Amish doctrine teaches that the community, not the government, should support members in old age and crisis.
  • To claim the exemption, Amish workers must file Form 4029 with the IRS and meet specific religious belief requirements.
  • The Amish still pay federal income tax, state income tax, property tax, and sales tax at the same rates as other Americans.
  • Amish employers who hire non-Amish workers must still pay Social Security and Medicare taxes on those employees' wages.

How the religious exemption works under federal law

The exemption comes from Section 1402(g) of the Internal Revenue Code, which allows members of certain religious groups to be excluded from self-employment tax. A parallel rule covers employees through Section 3127. To use this exemption, an Amish person must file Form 4029 (process for Exemption From Self-Employment Tax for Use by Members of Certain Religious Groups) with the IRS.

The IRS does not grant the exemption automatically. The applicant must prove that their religious sect teaches its members not to accept public insurance benefits and that the sect makes reasonable provision for its dependent members. The Amish meet both tests: their faith explicitly forbids accepting government aid, and their community has a centuries-old system of mutual aid that covers medical bills, disability, and elder care.

Once approved, an Amish self-employed person or employer stops withholding Social Security and Medicare taxes from their own income or their employees' paychecks. They also don't pay the employer's share of these taxes. This is the only federal tax from which they are exempt.

What taxes the Amish do pay

Amish individuals and businesses pay federal income tax on their earnings, just like other Americans. They file tax returns, report their income, and owe tax at the same rates. The only difference is that their income is not subject to the 15.3% Social Security and Medicare withholding that applies to most workers.

The Amish also pay property tax on land and buildings they own. They pay sales tax when they buy goods in states that have it. Many states also collect state income tax from Amish residents, though a few states have no income tax. In states where Amish live—Pennsylvania, Ohio, Indiana, and others—they pay these state taxes at the standard rate.

Amish-owned businesses that hire non-Amish employees must pay Social Security and Medicare taxes on those workers' wages, even though the Amish owner is exempt. This is an important distinction: the exemption applies to the Amish person's own labor, not to everyone in their business.

Why the Amish faith rejects government insurance programs

Amish theology teaches Gelassenheit, a German word meaning submission to God's will and to the community. This principle extends to how members handle hardship and aging. The Amish believe that accepting government benefits like Social Security signals a lack of faith in God and in the community's ability to care for its own. Instead, they practice mutual aid: when an Amish person faces a medical crisis, disability, or old age, the church community pools resources to pay the bills.

This system has worked for centuries. Amish communities maintain informal insurance through barn raisings, shared medical costs, and elder care within extended families. When an Amish farmer is injured and cannot work, neighbors harvest his crops. When an elderly Amish person can no longer live independently, adult children or the community provide housing and care. The Amish argue—and the law agrees—that this system is robust enough that government insurance is unnecessary.

The exemption also reflects a deeper principle: the Amish believe in separation from worldly institutions. Participating in Social Security would entangle them in a government program, which conflicts with their understanding of how a faithful community should operate. The tax exemption is therefore not just a financial benefit; it is a protection of religious practice.

Other religious groups with similar exemptions

The Amish are not alone in this exemption. Mennonites, Hutterites, and members of some other Anabaptist churches also may have access to, as do certain other groups with similar theological commitments to community self-sufficiency. The law does not name specific religions; instead, it sets criteria that any group can meet.

To may have access to, a religious sect must teach that members should not accept public insurance benefits and must demonstrate that the sect provides for its members' welfare. The IRS has approved exemptions for groups beyond the Amish, though the Amish are by far the largest and most well-known users of this provision. Some smaller Christian communities and other faith groups have also received approval.

What happens if an Amish person wants to opt back in

An Amish person who has claimed the exemption can choose to stop using it and start paying Social Security and Medicare taxes. However, this is rare and carries social consequences within the community. Opting back in signals that the person no longer trusts the community's mutual aid system or no longer holds the religious beliefs that justify the exemption.

If an Amish person leaves the faith and joins the broader economy, they may need to file amended returns and begin paying these taxes going forward. They cannot retroactively claim Social Security credits for years they were exempt, so leaving the Amish community late in life can mean having little or no Social Security benefit when they reach retirement age.

Common misconceptions about Amish taxes

One widespread myth is that the Amish pay no taxes at all. This is false. They pay income tax, property tax, and sales tax. The exemption is specific to Social Security and Medicare only. Another misconception is that the exemption is automatic or that all Amish people use it. In reality, the exemption must be requested through Form 4029, and not every Amish person or business files for it, though most do.

A third misconception is that the Amish are somehow cheating the system or receiving special treatment. The law treats the exemption as a legitimate accommodation of sincere religious belief, similar to how the law accommodates other religious practices. The IRS has determined that the Amish community's mutual aid system is a valid alternative to government insurance, so the exemption is legally sound.

Frequently Asked Questions

Do Amish people get Social Security benefits when they retire?

No. Because they don't pay into Social Security, they don't receive benefits from it. Instead, Amish retirees rely on family support, community aid, and savings. Adult children typically provide housing and care for aging parents, and the church community helps cover medical costs.

Can an Amish business hire a non-Amish employee and avoid paying payroll taxes?

No. An Amish employer must pay Social Security and Medicare taxes on non-Amish employees' wages. The exemption applies only to the Amish owner's own labor or to Amish employees who have also filed for the exemption.

What if an Amish person becomes disabled and can't work?

The Amish community provides support through mutual aid. Family members, neighbors, and the church help cover living expenses and medical costs. There is no government disability insurance, so the community's informal system is the only safety net available.

Do Amish people pay property tax on their farms?

Yes. Amish landowners pay property tax at the same rate as other property owners in their county or state. Some states offer agricultural tax breaks that Amish farmers can use, but these are available to all farmers, not just the Amish.

Can someone who is not Amish claim this tax exemption?

Only if they are a member of a religious sect that meets the IRS criteria: the sect must teach that members should not accept public insurance benefits, and the sect must provide for its members' welfare. The exemption is not available to individuals based on personal religious belief alone.