Amish communities tend to be private and avoid anything government-related. Still, they respect and abide by appropriate tax laws in their communities. Depending on the state and community in which they live, there may be tax exemptions and changes. Let’s try to answer the question: Do the Amish pay taxes?
Amish communities often do their taxes, while others hire outside accountants. Amish accountants and bookkeepers may even be found in larger Amish communities. Let’s explore Amish taxes in more detail.
Do the Amish pay taxes?
Yes, the Amish pay taxes. These include sales tax, property tax, and income tax. They pay state, local, and federal income taxes. However, they do not pay taxes on the benefits they do not enjoy. These include social security and employment taxes. Also, check out Beem to get a quick and accurate estimate of your federal and state taxes and get the maximum refund.
Which Taxes Do the Amish Pay?
While Amish communities are exempt from some taxes, they pay some taxes that apply to themselves and their communities. In addition to property taxes, sales taxes, and income taxes for local public schools they rarely attend, the Amish pay state and sales taxes. While the Amish pay income taxes, they do not pay taxes for social programs like welfare, unemployment, and social security.
There are federal and state income taxes for Amish communities. The amount depends on how much an individual earns in a year. It is common for Amish individuals and communities to make their living by performing manual labor, such as farming and selling homemade goods. Business owners among Amish families and individuals contribute to their communities’ economies and provide support.
Amish communities have a lot of property taxes due to the amount of land owned by average Amish families. Farming is one of the Amish communities’ primary sources of income, so there are more property taxes than in the middle community.
Due to the size of their land, it is a common problem for many Amish families to pay their property taxes. Taxes fund farming land and public services, such as schools and libraries.
There is a sales tax on all Amish products that affects all communities. As a result of their communities being self-sufficient and self-providing, many Amish only pay a little in sales taxes. Amish communities usually don’t purchase goods from major retailers or retail establishments. Amish communities pay all applicable taxes when they visit establishments or stores to buy goods or services.
Are the Amish Exempt from Any Taxes?
Amish people can be exempt from paying FICA, FUTA, and Self-Employment tax due to certain aspects and beliefs of their lifestyle. According to their religious beliefs, the Amish do not have to pay certain taxes, regardless of whether they are mentioned in the law.
Amish individuals do not pay social security tax even when employed by non-Amish employers. Their communities provide everything they need, including healthcare. While Amish individuals do not pay social security tax, adults in the community receive an Amish social security number.
There may be members of the community who are Amish voters. Some even have IDs, though they only have a little use. Amish communities tend to keep politics out, but it is rare for them to enforce rules that prevent people from voting.
Many Amish communities don’t have to pay the gas tax because they use few machines and vehicles. Although Amish communities use horse-drawn buggies as a primary mode of transportation, some businesses use machinery to operate. Still, they often find ways to use old machines that don’t use gasoline.
It is also known as the “sin” tax, which applies to items and products that are considered morally hazardous by the Amish. The Amish don’t allow liquor or any tobacco product in their communities as a result of their religious beliefs; therefore, goods and services such as liquor, cigarettes, and gambling fall under this tax.
So, do the Amish pay taxes? The Amish pay income, sales, and real estate taxes. In contrast, self-employed Amish, as well as those employed by non-Amish, do not pay Social Security taxes. Therefore, they do not receive Social Security benefits and unemployment benefits.
There is no doubt that the Amish pay their fair share of taxes. In some cases, they even pay more than the average American. Sometimes, the money they give does not benefit them, but they feel it is more important to do their duty and make a difference.
If you need more clarification about the process, consult a tax professional or seek assistance like Beem provides online.