When you can be tax exempt Native Americans

If you meet one of the following, we may not tax your income.

Enrolled tribal member

If you’re an enrolled member of a federally recognized California Indian tribe and:

Active duty military

If you’re an active duty U.S. military service member and:

  • You receive military pay
  • Stationed in California
  • Have orders to live outside Indian country

Retired military

If you’re a retired military service member and:

  • You receive military pension
  • You reside on your tribe’s reservation

Per capita income

Some California Indian tribes distribute gaming income to tribal members. This is per capita income.

You do not pay tax on per capita income if:

  • You're enrolled in a federally recognized California Indian tribe
  • You live in your tribe’s California Indian country
  • The income is from the same California Indian country where you live and are an enrolled member

Nonresident tribal members

You are not taxed on this income if:

  • You live outside California
  • Receive per capita income from California sources

Taxation of per capita income is based on where you live. The federal government taxes per capita income no matter where you reside.

Summary of exemption requirements
Earned income (wages) Received income (per capita)
You must be an enrolled member of a federally recognized California Indian tribe. You must be an enrolled member of a federally recognized California Indian tribe.
You must reside within any California Indian country. You must reside in your tribe's California Indian country.
You must earn reservation source income from within California Indian country. You must receive reservation source income from the same California Indian country in which you live and are an enrolled member.