I am Indigenous and I need help with my income tax. What do I need to know?

Last reviewed September 2024 by the Clicklaw editors

Indigenous people have unique tax considerations relating to property and income. According to the Indian Act, personal property on reserve is tax-free (exempt from taxation). (See section 87.) To check if your location applies, go to the web page “Determine whether you live on Indigenous government lands.”

If your mailing address or PO Box is not on Indigenous government lands, use your residential address instead.

You may not have to pay income tax on your employment income if it’s earned on a reserve. This applies you’re an Indigenous person registered with the federal government under the Indian Act and you’ve applied for a status card. Please note, registration under the act and applying for a status card are two separate things. You must be registered to apply for the status card, but you can do both at the same time.

Whether or not you have to pay income tax has to do mainly with where you work, although other factors are considered. The resources under “Helpful information” below explain how the Canada Revenue Agency (CRA) decides whether your income is tax exempt.

Indigenous businesses are exempt from tax if the income-earning portion of activity happens on a reserve. Business owners with this exemption don’t have to make Canada Pension Plan (CPP) contributions, but they can opt in to CPP if they want.

Free tax clinics

The Community Volunteer Income Tax Program is a partnership between the CRA and various community organizations and volunteers. They provide free help for simple tax situations (described under “Eligibility criteria”), and this includes help for Indigenous people. To find a free tax clinic near you, go to the link at the bottom of the page.

Helpful information

  • Taxes and Benefits for Indigenous Peoples (Government of Canada): This resource has a section called “Get help to do your tax returns,” with tips to make it easier to file a tax return and to get benefits and credits. It also explains tax-exempt income under the Indian Act.
  • Taxes and Tax Credits (Government of BC): This page provides personal and general tax information, including information for First Nations.

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