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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 2013 budget was presented on February 27, 2013, 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, which at 45% gross-up is

bullet6.207% of grossed-up dividends
bullet9% of actual dividends

The federal gross-up reductions, starting in 2010, will automatically reduce the amount of the NU enhanced dividend tax credit as follows:

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.

With the 25% gross-up for 2013 and earlier years, this results in a dividend tax credit rate of:

bullet4% of grossed-up (taxable) dividends
bullet5% of actual dividends

The Federal gross-up is reduced to 18% for the 2014 and later taxation years, as per the 2013 Federal Budget.  If there are no further changes to the NU Income Tax Act, this results in a dividend tax credit rate of:

bullet3.051% of the grossed-up dividend
bullet3.60% of the taxable dividend

The above rates for 2014 have been used in calculating the NU marginal tax rates.

 

Nunavut Refundable Tax Credit

This is refundable to the taxpayer even if no income tax was paid.

bulletCost of living tax credit
bulletamount received depends on adjusted net income

See Canada Revenue Agency (CRA) forms NU479 and the Territorial Worksheet 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

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: March 10, 2014

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