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Nunavut

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Territories -> Nunavut

Nunavut Budgets - NU Department of Finance

Information for all budget years can be accessed from the above link.

The Nunavut 2016-17 budget was presented on February 25, 2016, with no income tax changes announced.

Nunavut Income Tax

Nunavut/Federal tax brackets and marginal tax rates

Canadian Tax Calculator

Nunavut Dividend Tax Credit

Nunavut Enhanced Dividend Tax Credit for Eligible Dividends

NU Income Tax Act, 2000 s. 2.32

The dividend tax credit for dividends eligible for the enhanced dividend tax credit is 20% of the Federal gross-up amount.

The federal gross-up reductions which started in 2010 automatically reduced the amount of the NU enhanced dividend tax credit as follows:

Nunavut Enhanced Dividend Tax Credit

Year 2009 2010 2011 2012+
Gross-up % 45% 44% 41% 38%
enhanced dividend tax credit as a % of
grossed-up dividends 6.21% 6.11% 5.82% 5.51%
actual dividends 9.0% 8.8% 8.2% 7.6%

The Federal 2008 Budget reduced the gross-up rate and the dividend tax credit rate for dividends eligible for the enhanced dividend tax credit.  See the Enhanced Dividend Tax Credit article for details.

Nunavut Dividend Tax Credit for Non-eligible Dividends

NU Income Tax Act s. 2.32

The Nunavut dividend tax credit rate for non-eligible, or small business dividends is defined as 20% of the Federal gross-up.

The Federal 2016 Budget announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be not be revised further after 2016, and the Federal tax credit rate for these dividends would remain at 2016 rates.

The rates for non-eligible dividends, if the NU tax credit rate remains at 20% of the federal gross-up, are reflected in the following table.

   NU Dividend Tax Credit Rate for Non-Eligible Dividends

Year Gross-up
Rate
%of Federal
Gross-up
% of Grossed-up
Dividend
% of Actual
Dividend
2016+ 17% 20% 2.91% 3.4%
2014/2015 18% 20% 3.05% 3.6%
2013 25% 20% 4.00% 5.0%

The Nunavut table of marginal tax rates shows the marginal tax rates for eligible and non-eligible dividends and other income.

Nunavut Refundable Cost of Living Tax Credit

This is refundable to the taxpayer even if no income tax was paid.  The basic amount of the tax credit is 2% of net income, to a maximum of $1,200 per person.  A single parent with net income over $60,000 is eligible for a supplement of 2% of the excess of net income over $60,000, to a maximum of $255.12.

See Canada Revenue Agency (CRA) forms NU479 from the  Nunavut General Income Tax and Benefit Package page for detailed calculation.

Tax tip:  File a tax return even if you have no income, to get the refundable tax credits.

 

NU Government Links

Income Tax Act

Legislation - Consolidated Statutes and Legislation

Department of Finance

Health Care in Nunavut

Health and Social Services

Canada Revenue Agency (CRA) Links

NU Personal income tax and benefit package

NU Corporation income tax

 

Government benefits, programs and services.

 

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Revised: April 20, 2016

 

 

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