An enrolled member of a Utah Native American tribe who lives and works on the reservation where enrolled may be exempt from Utah income tax.
A “reservation” must be within the currently recognized reservation boundaries set by the federal government. This includes land removed from the Uintah and Ouray Reservation under Hagen v. Utah (510 U.S. 399 (1994)).
Include your qualifying income in your Federal Adjusted Gross Income and deduct it on TC-40A, Part 2, using code 77. Also enter the enrollment/census number and a nation/tribe code (see TC-40 instructions).
The following table shows qualified income earned by tribal and non-tribal members:
| Resides on Reservation? | Employed on Reservation? | May Claim Deduction? |
|---|---|---|
| Yes | Yes | Yes, on income earned on the reservation where enrolled. |
| No | Yes | No |
| Yes | No | Not on income earned on the reservation.* |
| Yes | No (Military income earned off reservation) | Yes on military income earned off the reservation. |
| No | No | No |
| Yes, but a non-tribal member | Yes | No |
| No | Yes, but non-Native American | No |
* If you are required to work both on and off the reservation, please contact the Utah State Tax Commission, Taxpayer Services Division at (801) 297-7705 (1-800-662-4335, ext. 7705 outside Salt Lake City), to determine if the income qualifies for this deduction.
If you are a Native American living on a reservation, your passive income (interest, dividends, etc.) is not taxable. However, if you live off of the reservation, your passive income of is taxable.
