RL34220
Federal Income Taxation of Indian Tribes and Members
October 26, 2007
Download Locations
Summary
Generally, Indian tribes are exempt from federal income taxation. This exemption extends to income earned by federally chartered -- but not state-chartered -- tribal corporations. On the other hand, individual tribal members are not exempt from federal income taxation. However, there are two Indian-specific tax exemptions available for individual tribal members: (1) income derived directly from restricted lands and (2) income derived from treaty fishing-rights activity. Finally, while the income of Indian tribes may be exempt from tax, Indian tribes are still generally subject to withholding and employment tax obligations.
