Do American Indians pay taxes?
All American Indians are subject to federal income taxes. As sovereign entities, tribal governments have the power to levy taxes on reservation lands. Some tribes do and some don’t. As a result, Indians and non-Indians may or may not pay sales taxes on goods and services purchased on the reservation depending on the tribe. However, whenever a member of an Indian tribe conducts business off the reservation, that person, like everyone else, pays both state and local taxes. State income taxes are not paid on reservation or trust lands.