TaxTips.ca - Yukon Income Tax

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Territories -> Yukon

Yukon Income Tax

Yukon/Federal tax brackets and marginal tax rates

Canadian Tax Calculator

Non-refundable personal tax credits

For information on the amounts for most non- refundable tax credits available to Yukon residents, see the non-refundable personal tax credits tables.

Yukon dividend tax credit

Eligible dividends

YT Income Tax Act s. 6(39)

The dividend tax credit for dividends eligible for the enhanced dividend tax credit used to be 35.444% of the Federal gross-up amount, which at 45% gross-up was

	11% of grossed-up dividends
	15.95% of actual dividends

Due to the changes in the federal gross-up % starting in 2010, amendments were made to the Yukon Income Tax Act, revising the calculation of the dividend tax credit starting in 2011. The following table shows the resulting rates.

Year	2009	2010	2011	2012
Gross-up %	45%	44%	41%	38%
enhanced dividend tax credit as a % of
grossed-up dividends	11%	10.83%	15.08%	15.08%
actual dividends	15.95%	15.60%	21.26%	20.81%

The above rates are based on the federal and Yukon corporate tax rates for large corporations, as well as the gross-up percentage in effect on January 1 of the tax year. The 2012 rates are calculated using the expected federal corporate tax rate of 15% for 2012.

The Yukon tables of marginal tax rates have been revised to reflect the new dividend tax credit rates for both eligible and non-eligible dividends.

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.

Non-eligible dividends

YT Income Tax Act s. 6(39)

The Yukon dividend tax credit rate for non-eligible, or small business dividends (25% gross-up) was previously defined as 22.24% of the 25% Federal gross-up. This is:

	4.448% of grossed-up dividends
	5.56% of actual dividends

The Yukon Income Tax Act was revised in the fall of 2010, resulting in a non-eligible dividend tax credit rate, for 2011 and later years, of 4.51% of taxable (grossed-up) dividends, which is 5.64% of the actual dividend.

YT low-income family tax credit

	available for low income individuals or families
	if married or living common-law, must be claimed by spouse with higher net income
	maximum credit is 80% of Yukon tax
	income for the calculation of this credit will not include the federal Universal Child Care Benefit of $100 per month

See Canada Revenue Agency ( CRA) form YT428 from the YT General Income Tax and Benefit Package page for detailed calculation.

YT Child fitness tax credit

Yukon Government Links:

Budget website

Legislation

Income Tax

Health Care in the Yukon

Health and Social Services

Health care insurance registration - health care card

Pharmacare

Canada Revenue Agency (CRA) Links

YT Personal income tax and benefit package

YT Corporation income tax

Government benefits, programs and services.

Revised: October 28, 2011

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