All the Numbers

Income tax in Nunavut

From the All the Numbers wiki · Tax

A resident's territorial tax is worked out on the NU428 and the NU479, attached to the federal return. Residents also get the federal northern residents deduction.

The rules (2026)

Four brackets: 4% up to $55,801, 7% to $111,602, 9% to $181,439 and 11.5% above.[1] Credits are taken at 4%.

  • Basic personal amount: $19,659.[2]
  • Spouse or eligible dependant: $19,659 less the dependant's net income.[3]
  • Age amount: $12,550 at 65 or over, less 15% of net income above $46,432.[4]
  • Pension amount: $2,000, the federal amount.[5] CPP and EI are credited as federally.[6]
  • Young children: $1,200 a year for each child under 6 at some time in the year; in a couple, the parent with the lower income claims it.[7]
  • Dividends: 5.5072% (eligible) and 2.6087% (other) of the grossed-up dividend.[8][9]
  • Minimum tax: 45% of the federal additional tax.[10] Foreign tax is credited on the T2036.[11]

There is no surtax, health premium or low-income reduction.

The cost of living tax credit

2% of net income, up to $1,500 once income passes $75,000. A single parent adds 2% of income over $60,000, up to $255.12. Whatever is more than the tax is paid out.[12]

The payroll tax

Every employee pays 2% of their gross pay to the territory, withheld by the employer. It is not an income tax and nothing credits it.[13] The plan counts it with the territorial tax.

After 2026

The brackets and most credit amounts are indexed like the federal ones. The young child amount and the cost of living credit are fixed in dollars:[14] they grow with the plan's rate by default and stay put under the law as written. See tax brackets after 2026.

What it does not do

The volunteer firefighter and search and rescue credit and the payroll tax rules for someone who normally works outside the territory are not modelled. See also Nunavut benefits.

See also

  • Northern residents deduction · Living in the territories all year takes $11 a day, and as much again for the home, off taxable income.
  • Nunavut benefits · Nunavut pays a child benefit with the CCB for each child under 18, reduced as family income rises.
  • Tax brackets after 2026 are projected, not published · Every year after 2026 is taxed with the 2026 brackets, personal amounts, credits and CPP/EI ceilings grown at the plan's inflation rate. That is how CRA indexes them, but the real figures are announced each fall and will differ.

References

  1. ↑CRA T4127 (January 2026), Table 8.1 Nunavut: 4% to $55,801; 7% to $111,602; 9% to $181,439; 11.5% above · Nunavut personal income tax brackets and rates · See the source · effective 2026-01-01
  2. ↑CRA TD1NU 2026, line 1: basic personal amount ($19,659) · Nunavut basic personal amount · $19,659 · effective 2026-01-01
  3. ↑CRA TD1NU 2026, line 6: "Enter the difference between the amount at line 1 and the estimated net income of your spouse or common-law partner"; NU428 lines 11–16: base amount less the spouse's or eligible dependant's net income · Nunavut spouse or eligible dependant amount: the basic personal amount less the dependant's net income · $19,659 · effective 2026-01-01
  4. ↑CRA TD1NU 2026, line 2: "If you will be 65 or older on December 31, 2026, and your net income from all sources will be $46,432 or less, enter $12,550. You may enter a partial amount if your net income for the year will be between $46,432 and $130,099" · Nunavut age amount (65 or older at year end), less 15% of net income over the threshold · See the source · effective 2026-01-01
  5. ↑Income Tax Act (Nu) s.2.21(1): "B is equal to B as determined in accordance with subsection 118(3) of the federal Act"; NU428 line 27 "(maximum $2,000)" · Nunavut pension income amount: the federal amount · $2,000 · effective 2019-01-01
  6. ↑CRA NU428 (2025), line 20: "CPP or QPP contributions: Amount from line 30800 of your return"; line 22: "Employment insurance premiums: Amount from line 31200 of your return", both in the amount credited at the lowest rate · NU428 carries base CPP contributions and EI premiums as credits at the lowest Nunavut rate · effective 2026-01-01
  7. ↑Income Tax Act (Nu) s.2.211(1): "there may be deducted, in respect of each qualified dependent, an amount determined by the formula A x B where … B is … (b) for the 2007 and subsequent taxation years, $1,200"; s.2.211(2): the eligible individual has no cohabiting spouse or one "whose income for the year is greater"; a qualified dependent "(a) is less than six years of age at any time during the taxation year, (b) is residing with the eligible individual on the last day of the taxation year … (d) is not a person in respect of whom an amount has been deducted … under subsection 2.15(3)"; NU428 line 18 "Number of children × $1,200" · Nunavut amount for young children: this much a year for each child under 6 at any time in the year; with a spouse, the lower-income parent claims it · $1,200 · effective 2007-01-01
  8. ↑Income Tax Act (Nu) s.2.32(1): "Section 121 of the federal Act applies for the purposes of this Act, except that the amounts referred to in that section are multiplied by 20% instead of by the fractions referred to in that section" — 20% of the 38% gross-up · Nunavut dividend credit on eligible dividends, as a share of the grossed-up dividend · 5.51% · effective 2019-01-01
  9. ↑Income Tax Act (Nu) s.2.32(1): the amounts in section 121 of the federal Act "multiplied by 20%" — 20% of the 15% gross-up · Nunavut dividend credit on other than eligible dividends, as a share of the grossed-up dividend · 2.61% · effective 2019-01-01
  10. ↑Income Tax Act (Nu) s.2.1: "“specific percentage”, for a taxation year, means 45%"; NU428 (2025) lines 58 and 61: "× 45%" · Nunavut minimum tax: this share of the federal additional tax, and of the federal carryover · 45% · effective 2004-01-01
  11. ↑Income Tax Act (Nu) s.3(1) (deduction on account of foreign tax paid) · Nunavut foreign tax credit (T2036): foreign non-business tax beyond the federal credit, up to the foreign share of territorial tax · effective 2026-01-01
  12. ↑Income Tax Act (Nu) s.4.1(1.2): "(a) 2% of the individual's net income, if the individual's net income does not exceed $75,000; or (b) $1,500, where the individual's net income exceeds $75,000"; s.4.1(1.3): "a single parent may deduct from tax otherwise payable under this Act an amount equal to 2% of the portion of the individual's net income that exceeds $60,000 to a maximum of $255.12"; NU479 (2025): "(maximum $1,500)", "(maximum $255.12)" · Nunavut cost of living tax credit (NU479): a share of net income up to a cap, and a supplement for a single parent with higher income; refundable · See the source · effective 2007-01-01
  13. ↑Government of Nunavut, Guide to Payroll Tax Withholding and Reporting (2025): "Employers are required to withhold 2% of gross remuneration paid from each employee at the time the employee is paid" · Nunavut payroll tax: a share of an employee's gross pay, withheld by the employer; not an income tax and not credited against one · 2% · effective 1999-04-01
  14. ↑Income Tax Act (Nu) ss.2.211(1) and 4.1(1.2)–(1.3) state their amounts in dollars with no annual adjustment · Nunavut amounts fixed in dollars: the young child amount and the cost of living credit · effective 2007-01-01