Do Amish People Pay Taxes in Canada?

Ever spotted a horse and buggy clip-clopping down a rural Ontario road and wondered: do these folks even pay taxes? You're not alone. It's one of the most persistent myths about the Amish—this notion that they somehow get a free pass on their civic duties. But here's the truth that might surprise you: yes, Amish people in Canada absolutely pay taxes, and in some cases, they're paying more than the average Canadian.

The confusion is understandable, really. When you see a community that deliberately steps away from so much of modern life—no electricity from the grid, no cars, no fancy technology—it's tempting to assume they've opted out of everything, taxes included. But that assumption? Dead wrong. The reality is far more nuanced, and frankly, more interesting than the myth.

Whether you're curious about your Amish neighbours in Milverton, wondering about that new settlement in Prince Edward Island, or just fascinated by how different communities navigate Canadian tax law, let's dig into the actual facts. We'll explore which taxes the Amish pay, which ones they don't, and—perhaps most importantly—why these exemptions exist in the first place.

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Tax Obligations: Amish vs. Non-Amish Canadians

Before we dive deep into the details, let's get the big picture straight. This table breaks down exactly which taxes apply to Amish communities compared to their non-Amish neighbours. Spoiler alert: they're remarkably similar.

Important Note: The biggest misconception stems from conflating US tax law with Canadian tax law. In the United States, Amish individuals can apply for exemption from Social Security and Medicare taxes based on religious objections. This exemption does NOT exist in Canada. Canadian Amish pay CPP and all other mandatory contributions just like every other Canadian resident.

The Reality: What Amish Actually Pay in Canadian Taxes

Let's get into the nitty-gritty, shall we? Because understanding the specifics helps explain why the "Amish don't pay taxes" myth persists—and why it's fundamentally wrong.

Federal and Provincial Income Taxes: No Special Treatment

Here's something that might shock you: when April 30th rolls around, Amish families in Ontario are doing exactly what you're doing—filing their tax returns. The CRA doesn't care whether you drove to the accountant's office in a Tesla or a horse-drawn buggy. Income is income, and it gets taxed accordingly.

Most Amish earn their living through farming, carpentry, furniture-making, or running small businesses. That income gets reported on a T1 General return, same as everyone else. They calculate their taxable income, claim applicable deductions (yes, they know about the Basic Personal Amount), and pay federal tax at the standard progressive rates—15% on the first $57,375, climbing to 33% on income over $253,414.

Then comes provincial tax. For the majority of Canadian Amish living in Ontario, that means an additional 5.05% to 13.16% depending on their income bracket. The families who've recently moved to Prince Edward Island? They're navigating PEI's tax system, which ranges from 9.8% to 16.7%. Different province, different rates—but no exemptions for being Amish.

Real-World Example: An Amish carpenter in Milverton, Ontario earning $65,000 annually would pay approximately $10,800 in combined federal and provincial income tax, plus $3,550 in CPP, and $1,066 in EI. Their net after-tax income? Around $49,584—exactly the same as their non-Amish neighbour with identical earnings.

Property Taxes: Paying Twice for Education

This one really gets me. Not only do Amish families pay property taxes like everyone else, but they're essentially funding education twice over. How? Well, property taxes in Ontario fund public schools—schools their children will never attend. The Amish run their own private parochial schools, built and maintained entirely through community funds.

So when an Amish farmer pays property tax on his 100-acre farm near Lucknow, a chunk of that money goes toward the local public school system. Then, on top of that, his community voluntarily contributes to build and operate their own one-room schoolhouses. No government grants, no subsidies—just community members pooling resources to educate their children according to their values.

Some Amish families struggle significantly with property taxes, especially in areas where land values have skyrocketed. The tax assessment doesn't consider that many Amish farms aren't commercial operations generating huge profits—they're subsistence farms meant to provide for extended families. Yet the tax bill arrives all the same, calculated at the same rate as any agricultural property in the township.

There was even a situation in 2023 where an Amish settlement in Huron County faced a property tax issue when MPAC (Municipal Property Assessment Corporation) decided their school properties should be classified as commercial rather than exempt. The local council stepped in to help communicate with MPAC, but it highlights an important point: the Amish aren't automatically given exemptions. They navigate the same complex property tax system as everyone else.

Sales Taxes: HST on Every Purchase

Every time an Amish family walks into a hardware store in Waterloo to buy nails, fabric, or farming supplies, they're paying the 13% HST, same as you. When they hire a non-Amish driver to transport them to a medical appointment? HST applies to that service too.

But here's where it gets interesting: Amish businesses—and there are many successful ones—are required to register for HST/GST once they hit the $30,000 threshold. That Amish furniture maker with the roadside shop selling gorgeous handcrafted tables? He's collecting 13% tax on every sale and remitting it to the CRA quarterly, just like Ikea does (albeit on a slightly smaller scale).

Now, it's true that Amish communities buy fewer consumer goods overall than the average Canadian household. They're not purchasing the latest smartphones, subscribing to streaming services, or buying factory-made furniture. Their self-sufficient lifestyle naturally means lower sales tax payments. But that's different from being exempt—it's just the natural result of consuming less.

CPP and EI: The Canadian Difference

This is where Canadian Amish differ dramatically from their American cousins, and it's the source of much confusion. In the United States, Amish individuals can apply for—and typically receive—exemption from Social Security and Medicare taxes based on religious objections to government insurance programs. It's written right into US tax code under Section 1402(g).

Canada? Nope. No such exemption exists here.

Every employed Amish person in Canada contributes 5.95% of their income (up to $71,300) to CPP, plus an additional 4% on income between $71,300 and $81,200 (the CPP2 contribution). If they're employed by someone else, that employer matches their contribution. Self-employed Amish individuals—and many are—pay both the employee and employer portions, just like any self-employed Canadian.

Employment Insurance works the same way. Amish employees pay 1.64% of insurable earnings up to $65,700, and their employers contribute 1.4 times that amount. The irony? Most Amish would never dream of applying for EI benefits, even if they qualified. Their communities take care of their own during times of unemployment, illness, or hardship. But they still pay into the system because Canadian law requires it.

There's a certain contradiction here, admittedly. The Amish pay into government programs they'll likely never use, which seems to violate their principle of community-based mutual aid. But unlike their American counterparts, they haven't successfully negotiated an exemption with the Canadian government. Whether they've even tried is unclear—the Amish aren't exactly known for lobbying Parliament, eh?

Capital Gains and Business Taxes

When an Amish farmer in Norwich decides to sell a portion of his land to help his son start a new farm in PEI, that sale triggers capital gains tax. If he's realized more than $250,000 in gains, 66.67% of the excess becomes taxable income at his marginal rate. There's no religious exemption, no special consideration for Plain communities.

Same goes for business income. That thriving Amish sawmill operation near Chesley? It's a business generating taxable income. Whether structured as a sole proprietorship, partnership, or some form of corporation, it's subject to Canadian business taxation. The owner files the appropriate returns, pays the applicable taxes, and continues operating.

Amish accountants exist in larger communities, handling the tax affairs for multiple families and businesses. In smaller settlements, they often hire non-Amish accountants. But either way, the work gets done, the forms get filed, and the taxes get paid.

Wait, Are There ANY Tax Exemptions?

Alright, so if Canadian Amish pay pretty much all the same taxes as everyone else, where does the myth come from? Well, there are a few specific situations—mostly historical or US-based—that have created confusion.

The US Social Security Exemption (Not Applicable in Canada)

This is the big one. In 1965, the US Congress carved out a specific exemption for Amish communities from Social Security and Medicare taxes. The reasoning? These programs fundamentally conflict with Amish religious beliefs about self-reliance and community care. Accepting government benefits for retirement or healthcare violates their understanding of Christian mutual aid.

When Americans see Amish not paying Social Security tax, it reinforces the misconception that "Amish don't pay taxes." From there, the myth spreads, crosses borders, and suddenly Canadians are assuming their local Amish communities have the same exemptions. They don't.

The Canadian government has never created comparable exemptions for CPP or other mandatory social programs. Whether this represents an oversight, a policy decision, or simply that Canadian Amish haven't pushed for such accommodations remains unclear. But the bottom line is simple: in Canada, you pay CPP. Period. End of story.

Worker's Compensation (Varies by Province)

Some US states have granted Amish communities exemptions from worker's compensation insurance requirements for similar religious reasons. In Canada, this varies by province and situation. Generally, if an Amish business employs non-Amish workers, they must carry WSIB coverage (in Ontario) or the equivalent provincial program. Within-community arrangements might be handled differently, but this isn't really a "tax" exemption—it's an insurance regulation.

Healthcare and OHIP

Here's an interesting nuance specific to Canada. Amish families do register with provincial healthcare systems—in Ontario, that means getting an OHIP number—but they typically don't carry a physical health card. Instead, they have a letter from the healthcare authorities confirming their registration.

When they use medical services, Amish patients often ask for an itemized bill showing what the service costs, even though OHIP covers it. Why? Because they maintain their own community-based health fund where members contribute to help cover major medical expenses. They want to know the value of services received so their community can make appropriate donations back to healthcare facilities.

This isn't a tax exemption—they're not avoiding paying for healthcare. In fact, they're contributing through their provincial tax payments AND through direct community funds. It's just a different approach to understanding and appreciating the cost of medical care.

Fuel Taxes: An Indirect Payment

Do Amish pay fuel taxes? Well, they don't pay driver's license fees (most don't have licenses) or vehicle registration. But they do pay fuel taxes indirectly in several ways:

• Diesel and gasoline for generators and equipment: Most Amish farms use diesel generators to power equipment since they're off the electrical grid. Every litre of fuel includes federal and provincial fuel tax.
• Hired drivers: When Amish families hire non-Amish neighbours to drive them to medical appointments, markets, or distant locations, that driver is paying fuel taxes, which get built into the fee charged.
• Commercial transportation: Amish businesses that ship products are paying for transportation that includes fuel taxes in the logistics costs.

So while they're not personally filling up a minivan at the gas station, they're still contributing to fuel tax revenue through their economic activities.

Understanding Amish Tax Contributions: Visual Breakdown

[Infographic would be placed here showing the following data visualized as a comparison chart]

Annual Tax Burden Comparison: $65,000 Income in Ontario

Non-Amish Canadian

• Federal Income Tax: $7,950
• Provincial Income Tax (ON): $2,850
• CPP Contribution: $3,550
• EI Premium: $1,066
• Property Tax (avg): $3,800
• Total Tax Burden: $19,216
• Net Income: $45,784

Amish Canadian

• Federal Income Tax: $7,950 ✓ Same
• Provincial Income Tax (ON): $2,850 ✓ Same
• CPP Contribution: $3,550 ✓ Same
• EI Premium: $1,066 ✓ Same
• Property Tax (avg): $3,800 ✓ Same
• Community School Fund: $1,200 + Additional
• Total Contributions: $20,416
• Net Income: $44,584

Key Insight: Not only do Amish Canadians pay the same taxes as their non-Amish neighbours, they often contribute more overall due to funding their own educational system on top of public school taxes. They're not free-riders on the system—in many ways, they're supporting it more than most.

Tax Revenue from Canadian Amish Communities (Estimated)

With over 6,000 Amish residents in Canada (primarily Ontario), and estimating average household income around $55,000-$70,000, Canadian Amish communities collectively contribute approximately:

• $8-12 million annually in federal and provincial income taxes
• $3-4 million annually in CPP contributions
• $1-1.5 million annually in property taxes
• $500,000-$800,000 annually in sales taxes (conservative estimate given lower consumption)
• Total estimated contribution: $12.5-18.3 million per year

These are conservative estimates that don't account for business income taxes, capital gains taxes, or fuel taxes paid indirectly. The actual contribution is likely higher.

Frequently Asked Questions: Amish and Taxes in Canada

Do Amish people in Canada pay income tax?

Yes, absolutely. Amish individuals and families in Canada pay both federal and provincial income tax on all earnings, whether from employment, self-employment, farming, or business operations. They file T1 General tax returns annually and are subject to the same tax brackets and rates as all other Canadian residents. There are no religious exemptions from income tax in Canada.

Are Canadian Amish exempt from CPP (Canada Pension Plan)?

No. Unlike their American counterparts who can be exempt from Social Security taxes, Canadian Amish have no exemption from CPP contributions. Every employed or self-employed Amish person in Canada pays the mandatory 5.95% CPP contribution (plus CPP2 on higher earnings) just like any other Canadian worker. This is one of the key differences between US and Canadian tax treatment of Amish communities.

Do Amish pay property taxes in Ontario?

Yes, Amish families pay full property taxes on their homes, farms, and business properties in Ontario and all other Canadian provinces. In fact, they often face a double burden: they pay property taxes that fund public schools (which they don't use), and separately fund their own private Amish schools through community contributions. Some Amish families struggle with property taxes, especially in areas with high land values, as tax assessments don't account for whether the farm is generating commercial income.

Why do people think the Amish don't pay taxes?

This misconception stems mainly from confusion with US tax law, where Amish can be exempt from Social Security and Medicare taxes based on religious objections. When people see Amish communities living separately from mainstream society—without cars, electricity, or modern technology—it's easy to assume they've opted out of all civic obligations including taxes. Additionally, because Amish communities are self-sufficient and rarely use government benefits like EI or welfare, some assume they don't contribute to these systems. The reality is quite different: they pay taxes but choose not to use many government services.

Do Amish businesses collect and pay HST/GST?

Yes. Amish-owned businesses in Canada must register for HST/GST once their annual revenue exceeds $30,000, and they're required to collect tax on taxable goods and services sold to customers. This includes furniture shops, carpentry businesses, farm produce stands, and any other commercial operations. The collected tax must be remitted to the CRA on a regular schedule. Amish businesses also pay HST on their business purchases and can claim input tax credits just like any other Canadian business.

How many Amish live in Canada and where are they located?

As of 2025, Canada's Amish population exceeds 6,000 people living in approximately 20 different communities. The vast majority reside in Ontario, with the largest settlement near Milverton (founded 1824, over 1,360 people). Other significant Ontario communities include Lucknow (800 people), Norwich (700 people), and Aylmer (1,000 people). Recent settlements have also been established in Prince Edward Island (starting 2016) and New Brunswick (2015). For over 200 years, Ontario was the only Canadian province with Amish communities, but rising land prices have driven some families to seek more affordable farmland in Maritime provinces.

Do Amish pay into Employment Insurance (EI)?

Yes. All employed Amish workers in Canada pay EI premiums at the rate of 1.64% on insurable earnings up to $65,700 (1.31% in Quebec due to QPIP). Amish employers also pay the employer portion of EI premiums for their workers. While Amish communities traditionally care for unemployed members through community support rather than government programs, there is no exemption from EI contributions in Canadian law. They pay into the system even though culturally, they would be unlikely to apply for benefits.

What's the difference between US and Canadian tax treatment of Amish?

The key difference is that US Amish can apply for exemption from Social Security and Medicare taxes under Section 1402(g) of the Internal Revenue Code, based on religious objections to government insurance programs. This exemption does NOT exist in Canada. Canadian Amish must pay CPP, EI, and all other mandatory contributions with no religious exemptions available. In all other respects—income tax, property tax, sales tax—the obligations are similar in both countries. This distinction causes significant confusion when Canadians assume their Amish neighbours have the same tax exemptions as American Amish communities.

Do Amish file their own tax returns or hire accountants?

It varies by community and complexity. In larger Canadian Amish settlements like Milverton or Aylmer, you'll find Amish accountants and bookkeepers who handle taxes for multiple families within their community. These individuals have the necessary training and knowledge while respecting community values. Smaller communities or those with more complex business arrangements often hire non-Amish accountants to prepare and file their tax returns. Either way, the Amish take their tax obligations seriously and ensure compliance with CRA requirements, typically filing by the April 30 deadline (or June 15 for self-employed individuals).

Can Amish claim the same tax credits and deductions as other Canadians?

Yes. Amish taxpayers can claim all applicable federal and provincial tax credits and deductions that they qualify for, including the Basic Personal Amount, Canada Employment Amount, childcare expenses, medical expenses, charitable donations, and business expenses for self-employed individuals. Many Amish families benefit significantly from the Canada Child Benefit, given their typically larger family sizes. They can also contribute to and deduct RRSP contributions (though cultural attitudes toward such investments vary by community). The CRA treats Amish taxpayers exactly like any other Canadian residents for purposes of credits and deductions.

The Bigger Picture: Amish Contributions to Canadian Communities

Look, taxes are just numbers on a spreadsheet until you consider what they represent—a community's contribution to the collective good. And when you examine Amish communities through that lens, a fascinating picture emerges.

Yes, they pay their taxes. We've established that thoroughly. But here's what makes it remarkable: they pay into systems they rarely use, while simultaneously building parallel support structures within their own communities. Property taxes fund public schools, but Amish children attend private schools built and maintained entirely through community contributions. CPP provides retirement income, yet Amish communities care for their elderly within extended families on the family farm. EI offers unemployment support, but an Amish person facing financial hardship would turn to their church district for help, not Service Canada.

In rural Ontario townships with Amish populations, municipal officials often note that these residents contribute tax revenue without corresponding demands for services. They don't need public transit. They maintain their own roads where possible. They handle disputes through church leadership rather than clogging up the courts. The local fire department might respond to a barn fire in an Amish community, but they'll arrive to find dozens of neighbours already fighting

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