Territories -> Northwest Territories
Northwest Territories Tax
- tax brackets and applicable Northwest Territories rates, plus combined federal/NT marginal tax rates for eligible and non-eligible Canadian dividends, capital gains and other income (interest, foreign dividends, employment, self-employment, etc).
- Detailed tax calculator which includes most deductions and tax credits, can be used to check your tax return or to do some tax planning for the next tax year.
- The Basic Tax Calculator works for all provinces and territories, and requires very little input. You input the amount of income from Canadian eligible and non-eligible dividends, capital gains, and employment/other income. This will produce a table of taxes payable for the current and past 5 years, for all provinces and territories, as well as your marginal tax rate for each type of income.
NT Income Tax Act s. 2.32(b)
Starting with the 2011 taxation year, the NT eligible dividend tax credit for dividends is 11.5% of the taxable dividend amount. Previously, the dividend tax credit was 6.67/18ths of the Federal gross-up amount.
The NT eligible dividend tax credit is as follows:
NT Income Tax Act s. 2.32(a)
The Northwest Territories dividend tax credit rate for non-eligible dividends (also know as regular dividends, or small business dividends) is defined as 6% of the grossed-up (taxable) dividend.
The Federal 2017 Fall Economic Statement announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be reduced to 16% for 2018, and to 15% for 2019 and later years.
The current and past Northwest Territories rates for non-eligible dividends are shown in the following table. The 2018 and later rates will be in effect unless legislative changes are made by NT.
See the Northwest Territories table of marginal tax rates for the marginal tax rates for eligible and non-eligible dividends and other income.
These are refundable to the taxpayer even if no income tax was paid.
Cost of living tax credit
- amount received depends on adjusted net income
- not just for low income individuals
Cost of living supplement
- for taxpayers 18 years of age & older
- supplements for taxpayer & spouse
- less cost of living tax credit for taxpayer & spouse
- can be claimed by either spouse
See Canada Revenue Agency (CRA) forms NT479 and the Territorial Worksheet from the Northwest Territories General Income Tax and Benefit Package page for detailed calculations.
Tax Tip: File a tax return even if you have no income, to get the refundable tax credits.
COVID-19 Resources - federal and provincial/territorial
See Budget 2021 on the NWT website. Tax measures proposed:
Bill 16, An Act to Amend the Income Tax Act, which received Royal Assent on March 31, 2021, reduces the Small business corporate income tax rate to 2% effective Jan 1, 2021.
Northwest Territories 2020 Budget - February 25, 2020
See 2020-2021 Budget Address and Papers on the NWT website. No new taxes were introduced. Details of carbon tax rate increases are announced in the Tax Measures section of the Budget Address and Papers (pdf).
Northwest Territories 2019 Budget - February 6, 2019
The only tax change announced in the NT 2019 Budget on February 6, 2019 relates to the carbon tax that will be in effect starting July 1, 2019 . See 2019-2020 Budget Highlights on the NT website, and their main budget page.
Northwest Territories 2018 Budget - February 8, 2018
There were no tax changes announced in the NT 2018 Budget.
Northwest Territories 2017 Budget
There were no new taxes announced in the NT 2017 Budget on February 1, 2017, but there were increases announced to tobacco taxes. Also, the following income tax changes were made, as indicated by Bill 17 (pdf):
The 2017 Budget provides an additional $750,000 in support for the NT Child Benefit.
For more information see the Northwest Territories government Budget information.
NT Government Links
Health Care in Northwest Territories
Canada Revenue Agency (CRA) Links
Revised: April 27, 2021
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