Taxation on reserves refers to the complex jurisdictional framework where reserve lands under the Indian Act are exempt from provincial and municipal property taxation. This federal jurisdiction means municipalities cannot collect property taxes on reserve lands even when providing services to reserves. The exemption recognizes Indigenous rights and federal responsibility for reserves, but creates challenges when reserves are surrounded by or adjacent to municipal areas. Some First Nations have established their own property taxation systems under federal legislation, taxing properties on reserve lands. Service agreements between municipalities and First Nations may address service delivery and cost-sharing in lieu of taxation. The taxation framework is one aspect of complex jurisdictional relationships between municipalities and First Nations.