Métis people do not qualify for a tax exemption in Canada based on their Indigenous identity. The relief most Canadians associate with Indigenous status comes from Section 87 of the Indian Act, and that provision reaches only registered Status Indians whose personal property sits on a reserve. Because Métis are not “Indians” as the Indian Act defines the term, they pay federal and provincial income tax, GST/HST, and property tax under the same rules as any other Canadian resident.1Canada Revenue Agency. Information on the Tax Exemption Under Section 87 of the Indian Act
Why Section 87 Does Not Reach Métis
Section 87 of the Indian Act exempts the personal property of an Indian or a band situated on a reserve from taxation, including employment income earned on a reserve and GST/HST on goods purchased or delivered there.2Department of Justice Canada. Indian Act RSC 1985 c I-5 – Section 87
The gate is the definition. Under the Indian Act, an “Indian” is a person who is registered or entitled to be registered under the Act. Métis people do not meet that definition and cannot register.1Canada Revenue Agency. Information on the Tax Exemption Under Section 87 of the Indian Act The Act governs a specific legal relationship between the Crown and First Nations bands on reserves. Métis communities developed outside that reserve system, and the legislation has never been extended to include them.
What the Daniels Decision Actually Changed
The 2016 Supreme Court of Canada decision in Daniels v. Canada creates a lot of confusion here. The court unanimously declared that Métis and non-status Indians are “Indians” under subsection 91(24) of the Constitution Act, 1867, which gives the federal government authority to pass laws affecting them.1Canada Revenue Agency. Information on the Tax Exemption Under Section 87 of the Indian Act
That sounds like it should open the door to Section 87. It doesn’t. Section 91(24) is about which level of government can legislate, not about what benefits flow from that legislation. The CRA has addressed this directly: the Daniels decision “did not change who is an ‘Indian’ in the Indian Act” and “does not change the group of individuals currently eligible for the tax exemption.”1Canada Revenue Agency. Information on the Tax Exemption Under Section 87 of the Indian Act Ottawa may now create programs and legislation for Métis people, but the ruling did not require it to do so, and it did not attach Métis people to the existing Indian Act tax framework.
GST and HST at the Point of Sale
Status Indians generally do not pay GST/HST on property bought on a reserve or delivered to a reserve, or on services performed entirely on a reserve, provided they present a valid status card or Temporary Confirmation of Registration Document. The CRA states plainly that “Inuit and Métis people are not eligible for this exemption.”3Canada Revenue Agency. GST/HST and First Nations Peoples
The federal GST rate is five percent, and several provinces combine it with provincial sales tax into a single Harmonized Sales Tax at higher combined rates.4PwC Worldwide Tax Summaries. Canada – Corporate – Other Taxes Métis individuals pay both on all taxable purchases, regardless of where the transaction happens. A Métis citizenship card is not a substitute for a status card at the till.
Business and Investment Income
Métis entrepreneurs and investors are subject to the same federal and provincial tax rules as any other Canadian. There are no corporate tax reductions, capital gains exemptions, or small business deductions tied to Métis identity. The CRA has confirmed that individuals who do not meet the Indian Act definition are “subject to the same tax rules as other Canadian residents,” and that covers business profits and investment returns.1Canada Revenue Agency. Information on the Tax Exemption Under Section 87 of the Indian Act
This is where the Daniels ruling occasionally generates false hope. Some Métis business owners have assumed the decision entitles them to claim Section 87 exemptions on reserve-situated income. It does not. If you have been filing on that basis, correct your returns before the CRA flags the discrepancy on review.
Deductions Métis Filers Can Actually Claim
No tax break is tied to Métis identity, but several deductions and credits are available based on where you live or what you do. They are open to any Canadian who meets the criteria, and they are worth flagging because many Métis communities sit in regions where they apply.
Northern Residents Deductions
If you live in a prescribed northern zone (Zone A) or intermediate zone (Zone B) for at least six consecutive months, you can claim a residency deduction and, in some cases, a travel deduction. For the 2025 tax year, the basic residency amount is $11.00 per day in Zone A and $5.50 per day in Zone B. If you are the only person in your dwelling claiming the basic amount, you can also claim an additional residency amount at the same daily rate.5Canada.ca. Line 25500 – Northern Residents Deductions The calculation goes on Form T2222, with the result entered on line 25500 of your return.6Canada Revenue Agency. T2222 Northern Residents Deductions
For someone in Zone A claiming both the basic and additional amounts, that comes to $22.00 per day, or roughly $8,030 across a full year. Many Métis communities in northern Alberta, Saskatchewan, Manitoba, Ontario, and the territories fall within these prescribed zones.
Scholarships and Education Grants
Several Métis Nation affiliates offer post-secondary education funding. The tax treatment of these awards follows the ordinary rules for any Canadian scholarship. If you are enrolled as a full-time qualifying student at a post-secondary institution, scholarships and bursaries for that enrollment are generally fully exempt from tax. Part-time students can exempt amounts up to their tuition and program-related material costs, plus a basic $500 exemption. If you are not a qualifying student, only the first $500 is exempt.7Canada Revenue Agency. Taxable Scholarships, Fellowships, Bursaries, and Artists’ Project Grants
The rules apply whether the funding comes from a Métis Nation affiliate, a university, or a private foundation. The source does not change how the award is taxed.
A Note on Alberta’s Métis Settlements
Alberta’s eight Métis Settlements operate under the Metis Settlements Act, which creates a governance structure including Settlement Corporations, the Metis Settlements General Council, and a provincial appeal tribunal.8Government of Alberta. Metis Settlements Act These settlements can pass bylaws governing local matters on their land base, including how fees and levies for community services are collected.
Those arrangements come from negotiated agreements with the province, not from a general right flowing from Métis identity, and they only affect residents of the settlement lands. If you live on a Métis Settlement, your local fee structure may differ from a neighboring municipality, but your federal and provincial income tax obligations are unchanged. Outside the eight settlements, standard provincial and municipal rules apply in full.