Indian Act
Indigenous RightsFederal legislation that governs many aspects of First Nations life in Canada, including band governance, reserve lands, and tax exemptions. Originally a tool of control, it still defines key rights like Section 87 tax exemptions and Section 89 property protections that affect your finances directly.
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Section 87
The section of the Indian Act that exempts the personal property of a Status Indian situated on a reserve from taxation. In practice, this can apply to employment income, investment income, and purchases — but only when specific conditions (the connecting factors test) are met. It does not mean all income is automatically tax-free.
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Section 89 (property seizure protection)
The section of the Indian Act that protects the real and personal property of a Status Indian situated on a reserve from seizure by non-Indigenous creditors. This is why standard mortgages do not work on-reserve — the lender cannot foreclose. It protects you, but it also limits access to certain financial products.
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Status Indian
A person registered under the Indian Act. Status determines eligibility for Section 87 tax exemptions, NIHB health coverage, and other federal programs. Status is not the same as band membership — they are separate but related.