The Amish pay taxes, which might surprise many people. The simple answer to “do Amish pay taxes” is yes – they must pay state and federal income taxes, sales taxes, and real estate taxes just like any other American citizen.
The Amish live apart from modern society but still meet most tax requirements. They pay property taxes and even contribute to public school taxes, though they rarely send their children to these schools. They are exempt from paying Social Security taxes because they see Social Security as a form of insurance and don’t accept its benefits. This exemption also covers other federal social programs like Medicare, Medicaid, unemployment, and welfare. On top of that, Amish people who work for themselves don’t pay Social Security tax. Their deeply held religious beliefs stop them from taking benefits from these insurance programs. These tax principles stay mostly the same across Pennsylvania, New York, and other states where Amish communities live, though some local details might differ.
What taxes do the Amish pay?
The Amish community’s tax obligations often surprise many Americans. Their lifestyle might be different from mainstream society, but they shoulder substantial tax responsibilities.
Income tax and sales tax obligations
The Amish diligently follow federal and state income tax laws. They report earnings from farming, carpentry, and other trades, just like other citizens, and pay based on their income brackets. Religious beliefs limit their use of modern technology, so most Amish keep handwritten ledgers of their financial transactions. Non-Amish accountants help them deal with complex tax regulations by converting these physical records into standard IRS forms.
The Amish prefer paper forms over electronic submissions when filing taxes. They get these forms from local libraries or ask the IRS to mail them directly. They also like to pay their taxes in cash, which fits with their choice to stay away from modern financial systems.
The Amish follow the same sales tax rules as everyone else. Their businesses collect and pay sales tax on goods and services. They pay applicable sales taxes when buying things outside their communities. The same sales tax rules apply to all items bought or sold, no matter what the buyer’s religious beliefs might be.
Do Amish pay property taxes?
Yes, the Amish pay property taxes on their land, homes, and other real estate. Many Amish families own large farms, so these property taxes can be quite hefty. These payments help fund local services, roads, and public utilities that serve the whole community.
The Amish pay public school taxes even though their children usually go to private Amish schools. This means they support services they rarely use. States like Missouri and Iowa even tax their livestock, machinery, and buggies.
Land taxes can be tough on some Amish families, especially those who aren’t commercial farmers. Tax assessments don’t look at how profitable the land is or what it’s used for. Still, they meet these obligations as part of being good citizens.
Do Amish pay taxes in Pennsylvania and New York?
Amish communities in Pennsylvania and New York follow the same basic tax rules as other states. They pay income, sales, and property taxes in both places. Local and state regulations might change how these rules work.
New York’s tax departments sometimes create hurdles for Amish taxpayers who want to file paper returns instead of electronic ones. This happens even though everyone knows the Amish are “willfully compliant” with their taxes.
Pennsylvania has one of America’s largest Amish populations. Here, they pay all standard state and local taxes. This covers income and property taxes, plus sales taxes on their handmade furniture, quilts, and other items they sell to tourists and locals.
Some states have special rules. Indiana’s Amish pay road taxes and fees for each buggy they own. Ohio collects road taxes from its Amish residents too. These differences show that while basic tax principles stay the same, specific rules can vary by location.
Which taxes are the Amish exempt from?
The Amish community has earned special tax exemptions that align with their religious beliefs. These exemptions mainly relate to insurance and social programs. Their community believes in taking care of themselves without government help.
Social Security and Medicare (FICA)
The Federal Insurance Contributions Act (FICA) collects taxes from employers and employees to fund Social Security and Medicare. Unlike most Americans who must pay these taxes, the Amish get exemptions because of their religious opposition to insurance programs. These exemptions apply to:
- Members of religious sects that are 1950 old
- People who follow beliefs that reject private or public insurance benefits
- Those who haven’t received Social Security or Medicare benefits
The Amish must give up their rights to all Social Security Act benefits to get this exemption, including hospital insurance. They rely on their community to help elderly, disabled, and sick members.
Federal Unemployment Tax (FUTA)
The Amish can also get exemptions from the Federal Unemployment Tax Act (FUTA). This follows their belief against government insurance programs. FUTA taxes usually support unemployment benefits, which goes against the Amish belief in community self-reliance.
Amish people who get FUTA exemptions agree never to take unemployment benefits. Their community steps in to help members who face unemployment or money problems.
Self-employment tax for the self-employed
Most Amish people work for themselves in farming, crafts, or trades. Congress created a special rule in IRC § 1402(g) that lets them skip self-employment taxes. This matters a lot since many Amish run their own businesses or farms.
Amish people need to file IRS Form 4029 to get these exemptions. The form asks them to prove that:
- They belong to a recognized religious group
- Their group takes good care of its dependent members
- They’ve never gotten Social Security benefits
People who got benefits before must pay them back to get the exemption. The exemption only works for money earned after the IRS approves it.
Keep in mind that these exemptions have limits. The Amish still pay federal income taxes. The exemptions only work in certain jobs:
- Self-employed work
- Partnerships with others who have the exemption
- Jobs with employers who have the exemption
Amish people working for non-Amish employers must pay Social Security and Medicare taxes. Amish employers who hire non-Amish workers need to handle these taxes for those employees.
Why are the Amish exempt from certain taxes?
Religious convictions deeply shape the foundation of Amish tax exemptions. These exemptions create a balanced system where communities give up certain government benefits to avoid related tax obligations.
Religious beliefs about insurance and self-reliance
The Amish strongly oppose insurance programs because they conflict with their religious principles. They call Social Security a form of insurance (officially named the Federal Old Age, Survivors, and Disability Insurance Program). Their exemption from Social Security and Medicare taxes comes from their steadfast dedication to self-sufficiency and community care without government help.
This position aligns with the Amish belief in staying separate from worldly systems. They believe joining government insurance programs would create unwanted dependencies outside their religious community. Congress passed IRC §§ 1402(g) and 3127 to free qualifying religious individuals from these tax obligations.
Biblical basis for rejecting government aid
Scripture guides the Amish’s stance on government assistance. The Bible tells them to care for their church members with special needs and elderly. Commercial or government insurance would go against their belief that God provides care through their church community.
The Amish believe it’s “sinful not to provide for their own elderly and needy” based on their scriptural understanding. Their faith teaches them that government benefits would weaken their religious duty to support each other as a community.
Community-based support systems
The Amish created strong support networks instead of relying on Social Security and other federal programs. Their community system has:
- Church funds for medical expenses and elder care
- Shared resources within communities for healthcare costs
- Support for members during unemployment or money problems
- Family and community care for elderly members
This mutual aid lets the Amish skip government benefits confidently because their community provides needed support. Their system proved so effective that it helped justify their Social Security exemption, granted in 1965 after years of conflict with the Internal Revenue Service.
The exemption balances religious freedom with government requirements carefully. The Religious Freedom Restoration Act requires Amish individuals to formally give up their rights to receive program benefits. Their tax exemptions show recognition of an alternative system based on religious principles rather than special treatment.
How do Amish apply for tax exemptions?
The Amish must guide through a formal application process under the Religious Freedom Restoration Act to secure tax exemptions. These exemptions are not automatic – they just need specific documentation and strict compliance with guidelines.
IRS Form 4029 and certification process
IRS Form 4029 serves as the life-blood of the Amish tax exemption process. The official title reads “Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits.” Applicants submit this form to the Social Security Administration at the listed address. The Social Security office first checks if the religious sect meets requirements. The IRS then approves or denies the application.
The timing of exemption varies. Self-employed applicants see their approved exemption take effect right away and it continues for future years when they meet requirements. Employers and employees start their exemption on day one of the quarter after filing Form 4029.
Conditions for approval
Amish applicants must meet several key conditions to qualify for tax exemptions:
- Membership in a recognized religious sect that’s been around since December 31, 1950
- Sincere adherence to sect teachings against accepting private or public insurance benefits
- Membership in a religious community that supports its dependent members adequately
- A formal waiver of all Social Security and Medicare benefit rights
- Certification that wages or self-employment income won’t generate benefits for anyone
What happens if benefits were previously received
Previous Social Security benefits create extra challenges for applicants. The IRS rules state you can’t get an exemption if you or anyone else received benefits based on your wages or self-employment income.
A solution exists – applicants might still get approval by paying back any received benefits. Approved exemptions only cover earnings after the IRS gives the green light. The exemption stays valid only while the person meets all requirements.
Amish individuals must write to the Internal Revenue Service if they leave their religious community or stop following its teachings, which ends their exemption.
Do the Amish vote or participate in government?
The Amish have a unique relationship with government participation that goes beyond their tax situation. Their religious principles shape how they interact with civic matters.
Amish views on civic duty and voting
Biblical teachings guide the Amish to respect and pray for governing authorities. Their approach to government stems from the principle “Obey God rather than men” (Acts 5:29) when civic requirements clash with their religious beliefs. Most Amish communities allow voting, but you won’t find them holding public office or taking part in political activism. This comes from their “two-kingdom” theology—they believe in a clear distinction between God’s kingdom and man’s kingdom, with God’s kingdom taking priority. The Amish value the separation of church and state. They rarely join government committees or commissions but will talk to local officials when needed.
Low voter turnout and reasons behind it
Amish voter participation stays well below national averages. Research shows that:
- Less than 10% of eligible Amish adults cast their votes
- About 3,000 Amish voted in Lancaster County, Pennsylvania (home to one of America’s largest Amish communities) in 2020
- The 2004 presidential election saw the highest Amish voter turnout at roughly 13%
Their theological stance on government separation explains this limited participation. Many Amish also worry that voting might go against their pacifist beliefs by supporting candidates who could use military force. Younger businessmen from progressive Amish settlements who have interests in community affairs make up most of those who vote.
Separation of church and state in practice
The Amish take a literal view of church and state separation. They prefer not to receive government subsidies. Local issues that affect their way of life, especially those about religious freedom protections, tend to increase their political involvement. The Amish created a national steering committee to work with legislators on community issues. This came as a response to growing conflicts about education, healthcare, zoning, and identification requirements.
Conclusion
Many people think the Amish don’t pay taxes, but this isn’t true. They pay federal and state income taxes, property taxes, and sales taxes just like other Americans, even though they live separately from modern society. Their religious beliefs, not an attempt to dodge civic duties, are the reason they don’t pay Social Security, Medicare, and unemployment taxes.
The Amish and government maintain a delicate balance between religious freedom and civic responsibility. Amish individuals file IRS Form 4029 to give up their rights to benefits from programs they choose not to fund. This system recognizes their detailed community support networks that work instead of government assistance programs.
Religious values shape the Amish community’s tax practices and exemptions. Their interpretation of scripture puts emphasis on being self-sufficient and taking care of their community. This creates a support system that helps elderly, disabled, and struggling members. Their tax exemptions aren’t special treatment – they simply acknowledge a working alternative system.
Amish communities of all sizes stick to the same tax principles, with small variations between states. Amish citizens in Pennsylvania, New York, and other states show steadfast dedication to paying required taxes. They only seek exemptions when specific programs clash with their religious beliefs.
The Amish way of handling taxes shows how religious communities can keep their identity while being responsible citizens. They choose which government systems to participate in based on their religious conscience, not convenience. This is a great example of how faith, community, and citizenship work together in America.
FAQs
1. Do the Amish pay income and property taxes?
Yes, the Amish pay federal and state income taxes, as well as property taxes on their land, homes, and other real estate holdings. They also pay sales taxes on goods and services like other citizens.
2. What taxes are the Amish exempt from?
The Amish are exempt from Social Security and Medicare taxes (FICA), Federal Unemployment Tax (FUTA), and self-employment taxes for those who are self-employed. These exemptions are based on their religious beliefs against accepting government assistance.
3. How do the Amish apply for tax exemptions?
Amish individuals apply for tax exemptions by filing IRS Form 4029. This form requires them to certify their membership in a recognized religious group, waive rights to Social Security and Medicare benefits, and confirm they’ve never received such benefits.
4. Do the Amish participate in voting or government activities?
While voting is generally permitted in Amish communities, participation is typically low. Most Amish emphasize separation from worldly affairs and rarely hold public office or engage in political activism. Their involvement usually increases only when local issues directly impact their way of life.
5. How do the Amish support their community without government assistance?
The Amish have developed comprehensive community-based support systems as alternatives to government programs. These include church funds for medical expenses and elder care, pooled resources for healthcare costs, and family and community care for elderly members.