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Indigenous people pay taxes: Demythologizing the Indian Act tax exemption – The Conversation

August 23, 2022

There is a common misconception among Canadians that Indigenous people do not pay any taxes. It perpetuates harmful stereotypes and hinders non-Indigenous Canadians from reconciling with the truths of Canada’s colonial history and present.

In reality, Indigenous Peoples are subject to the same tax rules as any other Canadian, unless they are eligible for tax exemption under Section 87 of the Indian Act. However, there is still considerable misunderstanding about how this exemption is applied.

The term “Indian” is an outdated, pejorative term that is no longer used to refer to Indigenous people in Canada, but it is the legal term used under the Indian Act to designate persons and “bands” to which the Act applies, which is why we are using it here.

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