All the Numbers

Income tax in Yukon

From the All the Numbers wiki · Tax

A Yukon resident's territorial tax is worked out on the YT428, attached to the federal return. Yukon residents also get the federal northern residents deduction.

The rules (2026)

Five brackets: 6.4% up to $58,523, 9% to $117,045, 10.9% to $181,440, 12.8% to $500,000 and 15% above.[1] The first three edges are the federal ones; the last is fixed.

  • Credits: the federal amounts (basic, spouse or eligible dependant, age, pension, Canada employment, CPP and EI), taken at 6.4%. The basic amount shrinks at high incomes exactly as the federal one does.[2]
  • Dividends: 12.022% (eligible) and 0.6665% (other) of the grossed-up dividend.[3][4]
  • Minimum tax: 43.9% of the federal additional tax.[5] Foreign tax is credited on the T2036.[6]

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

After 2026

The credit amounts and the first three edges move with the federal ones. The $500,000 edge is fixed: it grows with the plan's rate by default, and stays put if the plan is set to the law as written. See tax brackets after 2026.

What it does not do

The Child Fitness Tax Credit (it needs receipts), the First Nations income tax credit and the business investment and political contribution credits are not modelled. See also Yukon 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.
  • 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.
  • Yukon benefits · Yukon pays a child benefit with the CCB for each child under 18, reduced as family income rises.

References

  1. ↑Income Tax Act (YT) s.6(2): "the amount that would be determined under subsection 117(2) of the federal Act … if (a) the percentages referred to in paragraphs 117(2)(a) to (e) of the federal Act were replaced with (i) 6.40% … (ii) 9.00% … (iii) 10.90% … (iv) 12.80% … and (v) 15.00% … and (b) the dollar amount in paragraph 117(2)(e) and the corresponding dollar amount in paragraph 117(2)(d) were each replaced with the maximum business limit in subsection 125(2) of the federal Act" ($500,000); CRA T4127 (January 2026), Table 8.1 Yukon: 6.4% to $58,523; 9% to $117,045; 10.9% to $181,440; 12.8% to $500,000; 15% above · Yukon personal income tax brackets and rates: the first three edges are the federal ones, the fourth a fixed $500,000 · See the source · effective 2026-01-01
  2. ↑Income Tax Act (YT) s.6(9), (12), (15)–(16): the amounts in paragraphs 118(1)(a)–(d) of the federal Act, the basic amount with its federal reduction for income over the fourth-bracket threshold; s.6(26): 118(3); s.6(29): 118(2), 118(10), 118.3; s.6(36): 118.7; each at the "appropriate percentage" of 6.4%; T4127 (January 2026): "BPAYT = BPAF" · Yukon credits are the federal credit amounts (basic, spouse, eligible dependant, age, pension, Canada employment, CPP and EI) at the lowest Yukon rate · effective 2026-01-01
  3. ↑Income Tax Act (YT) s.6(39): a formula from the Yukon general corporate rate of 12% (s.10(1)(b)), the top personal rate of 15%, the federal gross-up and the federal net corporate rate; Worksheet YT428 (2025), line 12: "12.02%" · Yukon dividend credit on eligible dividends, as a share of the grossed-up dividend · 12.02% · effective 2026-01-01
  4. ↑Income Tax Act (YT) s.6(39): the same formula with the Yukon small business rate of 0% (s.10(1)(a)); Worksheet YT428 (2025), line 10: "0.67%" · Yukon dividend credit on other than eligible dividends, as a share of the grossed-up dividend · 0.67% · effective 2026-01-01
  5. ↑Income Tax Act (YT) s.6(50): "A/B × C" where A is the 9% Yukon rate, B the federal rate under 127.51 (20.5%) and C the federal additional tax; s.6(38): the carryover by the same quotient · Yukon minimum tax: this share of the federal additional tax, and of the federal carryover · 43.9% · effective 2024-01-01
  6. ↑Income Tax Act (YT) s.6(54): "there may be deducted in computing the individual's tax payable under this Part for the year the lesser of (a) the amount, if any, by which any non-business income tax paid by the individual for the year to the government of a country other than Canada exceeds … the amount deductible under subsection 126(1)" · Yukon foreign tax credit (T2036): foreign non-business tax beyond the federal credit, up to the foreign share of Yukon tax · effective 2026-01-01