411 U.S. 164 (1973)
McClanahan v. State Tax Commission of Arizona is a pivotal U.S.
Can a state impose a tax on the income of a Native American that is earned on a tribal reservation?
Absent explicit cession of jurisdiction from Congress, states generally cannot impose taxes on Native Americans' income derived from activities conducted on tribal lands.
The Supreme Court held that Arizona could not tax the income of McClanahan because her income was earned on the Navajo Reservation, a sovereign tribal land.
The ruling in McClanahan v. State Tax Commission is essential for understanding the delicate balance between state authority and tribal sovereignty. For law students, this case highlights how the interplay of federal and state power affects the administration of justice within the United States' diverse legal framework, particularly emphasizing the importance of recognizing federal primacy in regulating Native American affairs. It serves as a foundation for analyzing similar conflicts between states and Native American tribes and demonstrates the legal mechanisms through which the U.S. recognizes and preserves tribal sovereignty.