Amish are a christian religious group that lives secluded from the world so it is no wonder many have asked “do Amish pay taxes”.
Amish community, as well as the Mennonites, are a very controversial topic to talk about since there isn’t much known about them publicly.
One thing you should keep in mind is that like other citizens, Amish are the citizens of the United States of America and therefore, they are also accountable for paying taxes.
Taxes are used by the government to work on the development of the country. For example, tax collected is used to build new roads, law enforcement, maintain electricity across the country, make a national investment, healthcare, and more.
These are all benefits that we all enjoy, Amish included but whether they contribute to them is another question.
Pretty much everything that the government builds for the population is made through the use of Tax.
Like everybody else, Amish do pay taxes but there are some exceptions where they don’t. Amish pay income tax, property tax,
For example, the Amish don’t pay taxes for social security. There is a lot of factors as to why Amish doesn’t pay some taxes. Note that the Amish don’t receive benefits from any government aid programs if since they don’t pay social security tax.
Read on if you want to know more about which taxes the Amish pay and which taxes they don’t pay.
What Taxes Do The Amish Pay?
Amish pay most of the taxes that normal citizens of America pay. The Amish are not tax evaders.
The Amish do not pay Social Security taxes, therefore they don’t enjoy the benefits of the Social Security program as well.
They have a religious objection to it. Since they are a religious community, they don’t pay for Social security as they think that one should provide for oneself and their family.
That is all they don’t pay. The Amish pay property taxes, sales taxes, and income taxes like all other citizens of USA. Following are the details of the taxes that the Amish pay.
Amish Pay Property Tax
In simple terms, anybody who owns land in a country actually rents it from the goverment of that country. The government imposes tax for the small piece of land that anybody owns and people have to pay a yearly tax on that land. This is called property tax.
Since Amish live on the soil of America, they are also liable to pay property tax. Just being a religious community doesn’t mean that the Amish do not have to pay property tax, they have to and they do pay it.
Amish Pay Income Tax
Income tax is paid by all the individuals living in the US(or any other country in the world). Whenever you work a job or own a business, you are liable to pay an income tax to the government.
Amish are no exception to this rule, they also pay the exact income tax that any normal US citizen pays. Most of the Amish earn through farming, laboring, and construction. Therefore they pay income tax just like everybody else does.
Amish Pay School Tax
In many states of the United States of America, everybody is required to pay the tax for the public school. This tax is used to ensure that the schools are working and students can get good education.
Even though the Amish is a reserved community and don’t send their children to public schools, they are still required to pay school tax since they live in the states.
They are not exempt from public school taxes. Most Amish communities have small private schools where they give education to the Amish children. Amish also have to pay the private school tax as well for their Amish youth. They run their own Amish schools.
What Taxes Do The Amish Not Pay?
While the Amish pay most of the taxes that every normal citizen of the United States pay, they are exempt from some of the taxes.
For example, the Amish don’t pay tax for Social Security, self-employment, FICA (Federal Insurance Contribution Acts), and FUTA (Federal Unemployment Tax Act.)
Let’s discuss the taxes that the Amish don’t pay in detail.
Amish Don’t Pay Social Security Tax
The Amish don’t pay Social Security tax since this goes against their religious beliefs.
The social security program enables one to earn benefits when they are retired, or when they become disabled due to some sort of accident.
Many people may have seen taxes such as FICA, or FUTA written on their job checks which states that they are paying a monthly small insurance to the government that enables them to earn the benefits in the future.
They don’t feel comfortable accepting these benefits because of religious views, especially the verse 5:8 of Timothy that states if anyone who doesn’t provide for their family is worse than a disbeliever.
Do note that in order to avoid social security tax, the Amish have to go through a legal process with the IRS (Internal Revenue Service).
The Amish have to be self-employment and they must also prove that they belong to a religious community. They have to sign the Social Security Tax Exemption document “Application for Exemption From Social Security and Medicare Taxes and Waiver of Benefits”, at the IRS and only then, they are able to avoid social security tax.
Keep in mind that they don’t enjoy any of the benefits earned through social security since they don’t accept it.
Amish Don’t Pay Any Insurance Tax
The Amish are a very religious community therefore they don’t accept any kind of insurance.
In fact, they think that something like insurance goes against the very basis of their religion and shows that someone is a disbeliever from their point of view.
The Amish help each other in case someone needs help for going to a hospital or some other type of monetary assistance. In short, they don’t accept any form of insurance.
If someone is facing some sort of monetary troubles, they ask at the Amish church for help and the whole community helps them. This is how they function and don’t rely on any type of health insurance tax.
Amish Have To Apply For Tax Exemption
While the Amish don’t pay social security or other insurance-based tax, do note that they have to apply for it first.
They have to proof their religious exemption of tax through legal procedures.
The Amish are a secluded community but that doesn’t mean that they are above the law, in the eyes of the government, they are normal citizens.
Therefore, in order to opt out of paying social security taxes, the Amish have to apply for it through the IRS.
The Amish must proof that they are self-employed and that they belong to religious sects. They also have to sign a Social Security Tax Exemption legal document with the IRS. After a long hefty legal procedure, the Amish are exempted from Social Security tax.
Once exempted, they don’t pay the social security tax as well as they don’t receive any benefits from it such as unemployment benefits or help with the medical bills. They don’t accept any kind of commercial insurance as well.
There are many questions related to the question “Do Amish pay taxes?”, so we’ve compiled a list of them below.
Do Mennonites And Amish Pay Taxes?
Mennonites and Amish are Christian religious groups who believe in simple living. They don’t believe in paying taxes because they feel it goes against their religion.
Amish and Mennonites do pay taxes. They are required to pay income tax, property tax, and sales tax.
Some Amish business owners have also been known to charge their customers sales tax.
However, they do not pay Social Security taxes or any medical taxes.
Do Amish File Tax Returns?
When an Amish person gets a job, they file taxes. The government collects money from them, and then the government gives it back to them in the form of Social Security benefits. Except for social security, Amish file tax returns just like everybody else does.
Why don’t Amish Pay Social Security?
The Amish don’t pay social security taxes.
They would like to, but they cannot because it goes against their religious beliefs.
The Amish believe that if they pay into the fund they will be paying for everyone else’s retirement.
Why Don’t Amish Pay Some Of The Taxes?
Amish do not pay taxes in the same way as most people.
They do not pay Social Security or Medicare taxes. The reason for this is that the Amish are self-employed and run their own businesses for the most part.
What Type Of People Are The Amish?
Amish are good people. They live simple lives. Amish are peace-loving and gentle.
The Amish families are honest, hardworking, and reliable.
The Amish live in a closed community, where the entire community is like a family. They are not part of the world and do not have any contact with it.
Their beliefs are strictly adhered to, and they have no other way of life than their own. They follow the religion very closely.
Conclusion – Do Amish Pay Taxes
We discussed in detail whether do Amish pay taxes or not.
The Amish pay all of the taxes but don’t pay social security or insurance taxes.
The Amish are a group of people who live their life in a very conservative manner.
They use electricity, but only to power motors that drive tools and machinery. They don’t have TVs, computers, or any other electronic devices. Many don’t even own a car.
The Amish believe that the Bible instructs them to live this way, so they avoid modern technology in their day-to-day lives.
When it comes to the government, they pay most of the taxes but don’t pay some of them such as social security.