Tribal Members

Minnesota residents who are required to file a federal income tax return must file a Minnesota return even if all or part of their income is exempt from state tax.

For Minnesota income tax purposes, you are a resident of Minnesota if you reside on an Indian reservation in Minnesota. 

For more information, including credits you may be eligible for such as the Working Family Credit, see Individual Income Tax for Tribal Members.

If you're a Minnesota homeowner or renter, you may qualify for a Property Tax Refund. The refund provides property tax relief depending on your income and property taxes.

You can qualify even if all of the income earned on your Tribe's reservation is exempt from Minnesota income tax. However, there are some unique situations that can affect eligibility and refunds.

Household Income

Household income includes all taxable and nontaxable income from all sources.

Household income includes all reservation-based income regardless of whether it is subject to state or federal income tax

Types of Reservation Land

You must live on land that is assessed property taxes in order to qualify for a property tax refund. Indian Reservations generally consist of two types of land — trust land and fee land. Only residents living on fee land are eligible for the property tax refund as long as they meet the other requirements. 

How do I apply?

If you rent or own, submit form M1PR, Homestead Credit Refund (for Homeowners) and Renter’s Property Tax Refund by August 15. Homeowners may file online. For more information, visit Filing for a Property Tax Refund.

You can also call 651-296-3781 or 1-800-652-9094 to have forms sent to you.

American Indians are exempt from Minnesota income tax withholding if:

• They are an enrolled member of an American Indian Tribe
• They live on the reservation where they are an enrolled member
• They receive wages for working on the reservation where they live and are enrolled.

This exemption applies to wages paid by all private sector employers as well as state, local, federal, or Tribal government employers. It does not apply to wages received for working off the reservation.

Complete Form W-4MN

Each year, employees must complete Form W-4MN, Minnesota Employee Withholding Allowances/Exemption Certificate, to prevent Minnesota income tax from being withheld from their pay. 

To complete the form: 

1. Enter your name, address, Social Security Number, and marital status.
2. Select and complete Section 2 and Box D.
3. Sign the form.
4. Give the completed form to your employer.

Employers must keep the form on file in case the Minnesota Department of Revenue asks for a copy.

These court cases involve Minnesota Tribes, tax laws, and when Tribal or reservation income and property may be taxed. 

Fond du Lac Band of Lake Superior Chippewa v. Myron Frans (Eighth Circuit Court, 2011)
The Eighth Circuit Court held that pension income paid to band members is taxable if it was paid for services performed off the reservation.

Jefferson v. Commissioner of Revenue (Minnesota Supreme Court, 2001)
The Minnesota Supreme Court held that gaming distributions paid to enrolled Tribal members living off the reservation are subject to state income tax.

Cass County v. Leech Lake Band of Chippewa Indians (U.S. Supreme Court, 1998)
The U.S. Supreme Court held that property taxes may be imposed upon land that was made available by Congress for sale to non-Indians by the Federal Government and subsequently repurchased by the Tribe.

Brun v. Commissioner of Revenue (Minnesota Supreme Court, 1996)
The Minnesota Supreme Court held that enrolled Tribal members are exempt from state taxation on wages earned for working on the reservation only if they lived there while performing the services.

Bryan v. Itasca County, Minnesota (Minnesota Supreme Court, 1976)
The Minnesota State Supreme Court held that Public Law 280, a federal law, did not grant states the authority to impose taxes on Indians or Indian property on Indian reservation land.
 

Minnesota Indian Affairs Council

Tribal State Relations Training

Map of Indian Reservations in Minnesota (PDF)