Nunavut Income Tax Calculator
2025 & 2026

Nunavut Income Tax Calculator

Understanding Nunavut Income Tax: Tax Brackets, Credits, Deductions & Benefits

How the Nunavut Income Tax System Works

Like every province and territory in Canada, Nunavut also works on a progressive system. This means your income is divided into tax brackets, each with a different rate. Each portion of your income is taxed at the applicable rate. Moving into a higher tax bracket does not mean that your entire income is taxed at that higher rate. Your total income tax consists of two parts: federal and provincial income tax. Your final tax payable will be the combined amount of tax, after applying eligible deductions and tax credits.

2025 Nunavut Territorial Tax Brackets

Taxable Income	Tax Rate
$0 – $54,707	4%
$54,707 – $109,413	7%
$109,413 – $177,881	9%
Over $177,881	11.5%

2026 Nunavut Territorial Tax Brackets

Taxable Income	Tax Rate
$0 – $55,801	4%
$55,801 – $111,602	7%
$111,602 – $181,439	9%
Over $181,439	11.5%

Federal Tax Rates 2025 & 2026

The federal tax system applies to all Canadians regardless of territory of residence. These rates are progressive, meaning higher income portions are taxed at higher rates.

2025 Taxable Income	2025 Rate	2026 Taxable Income	2026 Rate
Up to $57,375	14.5%	Up to $58,523	14%
$57,375 – $114,750	20.5%	$58,523 – $117,045	20.5%
$114,750 – $177,882	26%	$117,045 – $181,440	26%
$177,882 – $253,414	29%	$181,440 – $258,482	29%
Over $253,414	33%	Over $258,482	33%

Note: In addition to these territorial rates, federal income tax applies based on the federal tax brackets, with rates ranging from 15% to 33%, depending on your taxable income.

Nunavut Basic Personal Amount (BPA)

The Basic Personal Amount is a non-refundable tax credit that allows qualified taxpayers to earn a certain amount of income before paying income tax. Nunavut Basic Personal Amount is $19,274 in 2025, and in 2026 it is $19,659. Compared to the federal Basic Personal Amount, it is slightly higher.

The federal basic personal amount is indexed annually and may vary depending on your income level. Most taxpayers with moderate incomes qualify for the full federal basic personal amount. Rather than reducing your taxable income, the BPA reduces the amount of tax you owe by applying the lowest tax rate to the eligible amount. BPA helps reduce your overall tax owed before any other credits or deductions are applied.

Important Nunavut Tax Credits and Deductions

Based on the eligibility criteria, residents of Nunavut may qualify for several valuable tax credits and deductions that can significantly reduce their tax liability.

Northern Residents Deduction

The Northern Residents Deduction is one of the largest tax benefits available to eligible Nunavut residents. To qualify for this, you are required to live in a prescribed northern zone for at least six consecutive months. The NRD may include a residency deduction based on the CRA's prescribed daily residency amount. It may cover an additional residency amount when applicable and eligible travel deductions for certain employment or personal travel expenses, subject to CRA rules. Because the deduction depends on your individual circumstances, many taxpayers use a Nunavut income tax calculator to estimate its impact.

Nunavut Cost of Living Tax Credit

The Nunavut Cost of Living Tax Credit is also a type of refundable territorial credit. It was started to help offset the higher cost of living in northern communities. Depending on your eligibility, the COL tax credit may provide benefits to individuals, spouses or common-law partners, and eligible children. Credit amounts and income thresholds may change periodically. It is suggested to always refer to the current tax year's rules.

Volunteer (Firefighter, Search & Rescue) Tax Credits

Eligible volunteers (firefighters, search & rescue) who meet the required service hours may qualify for this non-refundable tax credit. If you qualify for these credits, CRA rules determine which credit can be claimed.

Nunavut Political Contribution Tax Credit

Residents who make eligible contributions to candidates running in Nunavut territorial elections may qualify for a non-refundable territorial tax credit based on the amount donated.

Government Benefits Available to Nunavut Residents

In addition to tax credits, Nunavut residents may qualify for several government benefit programs administered by the Canada Revenue Agency (CRA) and the Government of Nunavut.

Benefit Program	Description
Nunavut Child Benefit (NUCB)	Monthly tax-free payment for eligible children under 18.
Territorial Workers' Supplement	Additional benefit for eligible low- and moderate-income working families.
Canada Child Benefit (CCB)	Federal tax-free monthly payment available to eligible families across Canada.

Nunavut Provincial Child Benefit

The Nunavut Child Benefit is a non-taxable monthly payment administered by the CRA on behalf of the Government of Nunavut.

• Families who are raising a child or children under 18 may be eligible.
• Additional support can be available through the Territorial Workers' Supplement.
• Income-tested benefits based on adjusted family net income.
• Benefit amounts are indexed periodically and may change each year.

How to Calculate Your Take-Home Net Income Pay in Nunavut

A Nunavut income tax calculator follows several steps to calculate your after-tax income.

Step 1: Calculate Your Gross Income

Include all taxable sources of income, such as employment income, self-employment income, bonuses/tips, taxable benefits, and investment income.

Step 2: Apply Eligible Pre-Tax Deductions

Subtract eligible deductions, like RRSP & FHSA contributions, Union or professional dues, and other eligible deductions. This determines your taxable income.

Step 3: Calculate Federal Income Tax

Apply the applicable federal tax brackets and reduce your tax payable using eligible federal non-refundable tax credits.

Step 4: Calculate Nunavut Territorial Tax

Apply the Nunavut territorial tax brackets and subtract eligible territorial tax credits such as BPA (Basic Personal Amount), Cost of Living Tax Credit, and other applicable territorial credits.

Step 5: Deduct Payroll Contributions

Your final take-home pay also includes mandatory payroll deductions, such as CPP, CPP2, and EI premiums.

Take Home or Net Income Formula

Net Income = Gross Income − Pre-Tax Deductions − Federal Income Tax − Territorial Income Tax − CPP − CPP2 − EI Premium

Marginal Tax Rate vs. Effective Tax Rate

Understanding these two tax terminologies helps us explain why your average tax rate is usually lower than your highest tax bracket.

What is Marginal Tax Rate?

Your marginal tax rate is the combined federal and territorial tax rate applied to your next dollar of taxable income. Only the portion of your income that falls within a higher tax bracket is taxed at that higher rate.

What is Effective Tax Rate?

Your effective tax rate is the average percentage of your total income paid in taxes. Because income is taxed progressively and non-refundable tax credits reduce your tax payable, your effective tax rate is generally much lower than your marginal tax rate.

General Tips to Reduce Your Nunavut Income Tax

You may be able to decrease your tax bill by:

• Increasing your RRSP contributions can reduce taxes.
• Contributing to a First Home Savings Account (FHSA).
• Claiming the Eligible Northern Residents Deductions.
• Claiming all available Territorial and Federal tax credits.
• Keeping records of deductible travel and employment expenses.
• Filing your income tax return on time to receive eligible government benefits.

CPP & EI Contributions 2025-2026

Canada Pension Plan (CPP) and Employment Insurance (EI) premiums are mandatory deductions from your employment income. These contributions fund retirement benefits and employment insurance programs.

• CPP Base (2025): 5.95% on earnings between $3,500 and $71,300. Maximum: $4,034.10
• CPP Base (2026): 5.95% on earnings between $3,500 and $74,600. Maximum: $4,230.45
• CPP2 (2025): 4% on income between $71,300 and $81,200. Maximum: $396
• CPP2 (2026): 4% on income between $74,600 and $85,000. Maximum: $416
• EI (2025): 1.64% on employment income up to $65,700. Maximum: $1,077.48
• EI (2026): 1.63% on employment income up to $68,900. Maximum: $1,123.07

Go to Nunavut Tax Calculator

Frequently Asked Questions