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 return.
- 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 enhanced dividend tax credit for eligible 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 enhanced dividend tax credit is as follows:
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.
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.
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.
Northwest Territories 2018 Budget
There were no tax changes announced in the NT 2018 Budget on February 8, 2018. See Budget and Main Estimates.
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: May 23, 2018
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