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Native American wage exemptions are for members of recognized tribes to exempt their income from state taxes. States which allow this deduction include California, Montana and Arizona.
For example, California does not tax your income if you
Are an enrolled member of a federally recognized California Indian tribe, and live in any California Indian country, and earn reservation source income from any California Indian country in which you live and are an enrolled tribal member or
Are an enrolled member of a federally recognized California Indian tribe, and live in your affiliated tribe's California Indian country, and receive reservation source income from the same California Indian country in which you live and are an enrolled tribal member.
For more information, follow this link: CA Taxation of Native Americans
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Here's an updated link. At this link, click the topics on the left side for more details.
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