Do American Indians and Alaska Natives pay taxes?

Answer

Yes. They pay the same taxes as other citizens with the following exceptions:

  • Federal income taxes are not levied on income from trust lands held for them by the U.S.
  • State income taxes are not paid on income earned on a federal Indian reservation.
  • State sales taxes are not paid by Indians on transactions made on a federal Indian reservation.
  • Local property taxes are not paid on reservation or trust land.