Living and working in the North? Our Yukon Income Tax Calculator is specifically calibrated for the unique tax landscape of the territory. Unlike the provinces, Yukon’s tax brackets are closely mirrored after the federal system, providing a simplified but progressive structure. Whether you are in Whitehorse, Dawson City, or a remote exploration camp, this tool ensures you account for the Yukon First Nations Tax Sharing agreements and territorial-specific credits.
Yukon uses a five-bracket system that is indexed annually to inflation. One of the most significant advantages for Yukoners is the Yukon Child Benefit and the Business Investment Tax Credit, which are designed to support families and local economic growth. Our calculator follows the same methodology as the Canada Revenue Agency (CRA) to ensure your estimates for the 2025 and 2026 tax years are as accurate as possible.
Yukon Territorial Tax Rates 2025 & 2026
Yukon’s territorial tax brackets are among the most competitive in Northern Canada. For 2025 and 2026, the rates are structured to ensure that low-to-middle income earners keep more of their paycheque. Below are the territorial brackets and rates:
2025 Yukon Territorial Tax Brackets
Taxable Income
Tax Rate
$0 – $57,375
6.4%
$57,375 – $114,750
9.0%
$114,750 – $177,882
10.9%
$177,882 – $500,000
12.8%
Over $500,000
15.0%
2026 Yukon Territorial Tax Brackets
Taxable Income
Tax Rate
$0 – $58,523
6.4%
$58,523 – $117,045
9.0%
$117,045 – $181,440
10.9%
$181,440 – $500,000
12.8%
Over $500,000
15.0%
Yukon Child Benefit & Affordability Measures
To assist with the higher cost of living in the North, the Yukon government provides several refundable credits. For the 2025-26 benefit year, the Yukon Child Benefit provides a maximum of $937 per child annually for families with modest incomes. For the year starting July 2026, this is projected to increase to $966 per child.
Key Yukon Affordability Credits:
Yukon Child Benefit: Refundable monthly payment for children under 18.
Social Assistance Increases: Linked to the Whitehorse Consumer Price Index.
Electricity Bill Assistance: Government subsidies to offset high northern energy costs.
Fertility & Surrogacy Credit: A new refundable credit of up to $10,000 starting in 2025.
Federal Tax Rates 2025 & 2026
The federal tax component is calculated on your total income before territorial credits are applied. Note that the lowest federal tax rate has been reduced to 14.5% for 2025 and 14.0% for 2026.
2025 Taxable Income
2025 Rate
2026 Taxable Income
2026 Rate
Up to $57,375
14.5%
Up to $58,523
14.0%
$57,375 – $114,750
20.5%
$58,523 – $117,045
20.5%
Over $253,414
33.0%
Over $258,482
33.0%
Yukon Basic Personal Amount
The Basic Personal Amount (BPA) is the amount of income you can earn before you start paying income tax. For 2025, the Yukon BPA is $16,129, and for 2026, it is $16,452. This matches the federal basic amount, providing significant relief for those with lower annual incomes.
Yukon First Nations Tax Sharing
Yukon has unique self-government agreements with many First Nations. If you reside on the Settlement Land of a self-governing Yukon First Nation, a portion of your income tax is shared with that First Nation government. This does not increase the amount of tax you pay; rather, it changes who receives the tax revenue. Our calculator ensures your tax is allocated correctly based on your residency status.
How to Use the Yukon Tax Calculator
Select Your Residency: Indicate if you live on First Nation Settlement Land.
Enter Employment Income: Include Northern Living Allowance and bonuses.
Deduct Northern Residents Deduction: Ensure you claim the "Zone A" travel and housing deductions.
RRSP & FHSA: Enter contributions to reduce your taxable base.
Investment Income: Report dividends and capital gains for tailored calculations.
Why Use Our Yukon Tax Tool
Northern Residents Deduction: Built-in support for Zone A (Yukon) housing and travel claims.
First Nations Integration: Accurate residency-based tax allocation.
Real-Time Updates: Reflects the latest 2025-26 Budget highlights.
Marginal Tax Insights: Understand exactly how much tax you pay on your last dollar earned.
All of Yukon is considered Zone A. Residents can claim a basic residency deduction of $11.00 per day (for 2025/2026) to offset the high cost of living in the North.
No. The total tax you pay remains the same. However, through tax-sharing agreements, 95% of the territorial portion of your tax is transferred to the First Nation government where you reside.
This is a 25% tax credit for Yukoners who invest in eligible local small businesses, with a maximum claim of $25,000 per year.
⚠️This tool is for information purpose only. We do not guarantee any claim. It is made based on data publicaly available on official website of concerned department.
Last Updated: March 2026 | Official determination by Service Canada required.
