There are many questions people have about the Amish. Some of those questions have evolved over the years. I mean, in 1990, when I first started studying the Amish, no one would have ever asked: do the Amish use the internet? Because there was no interest!
💰 The Amish and Taxes
But one question that has been fairly constant over the years has been: do the Amish pay taxes? Many people incorrectly say "no." That is a misconception that is hard to get rid of. So, do the Amish pay taxes? Let me answer this: Yes.
Somehow the notion that the Amish don’t pay taxes got started and just hasn’t let go in some quarters of the public. Come April 15 the Amish are heading to H & R block like everyone else. Now, it is true that the Amish often “avoid” (but not intentionally) gas taxes, which go to road improvements because they aren’t pumping gas to fill up their horses. But in many places there is a “work-around” in place. In Indiana, buggies are required to have license plates, and the fees from those go into road improvement. In other areas, the Amish voluntarily pay into local road improvement funds to help maintain the roads, which the horse's hooves and steel buggy wheels can be difficult.
📋 Social Security Contributions
Social security contributions are one area that gets maybe a bit murkier. If the Amish work for themselves they can be exempted from paying into social security. If they work for a non-Amish employer they have to pay into it like everyone else.
The Amish – as a general rule – don’t take government subsidies like unemployment (a totally different topic than taxes, but the two get lumped together often). During the administration of George W. Bush when most Americans received government stimulus checks an Old Order Mennonite bishop told me that he knew people in his church who either tore them up or sent them back to Washington. Even the Amish that do pay into Social Security via taxes rarely collect. So they are doing more than their fair share!
💸 Other Types of Taxes The Amish Regularly Pay
Sales Tax: Of course, every time they go into a farm store or a variety store, the Amish will have to pay sales taxes like everyone else.
Gas Tax: Yes, the Amish don't often need gas for cars, but they do buy gas for tractors and lawnmowers, so they would not be exempt from a gas tax like everyone else.
🦹 Are There Tax Cheats Among the Amish?
If an Amish person has a home-based business then, yes, their self-employment taxes would be on the honor system like anyone else, unless their income is 1099 income. I think the majority of Amish are honest and pay their taxes, but that doesn't mean - like in any other group - there aren't a few that might try to dodge the system. But that is the minority.
Leave a Reply