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Territories -> Nunavut

Nunavut Tax

Nunavut/Federal tax brackets and marginal tax rates

    - tax brackets and applicable Nunavut rates, plus combined federal/Nunavut marginal tax rates for eligible and non-eligible Canadian dividends, capital gains and other income (interest, foreign dividends, employment, self-employment, etc).

Canadian Income Tax & RRSP Savings Calculator

    - 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.

Basic Canadian Tax Calculator

    - 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.

Nunavut COVID-19 Information and Support

COVID-19 Resources - federal and provincial/territorial

Government benefits, programs and services

Nunavut Budgets - NU Department of Finance

The Nunavut 2021-22 budget was presented on February 22, 2021, with no tax changes announced.

The Nunavut 2020-21 budget was presented on February 26, 2020, with no tax changes announced.

Bill 56, Liquor Tax Act, was subsequently tabled, which proposes a tax on liquor products sold and consumed in Nunavut.  See the Nunavut information on Liquor Tax. As of February 24, 2021, this bill had not yet been passed.

The Nunavut 2019-20 budget was presented on February 20, 2019, with no income tax changes announced.  However, the following tax changes were subsequently tabled in Bill 26, An Act to Amend the Income Tax Act:

    - Refundable cost of living tax credit increased.

    - Basic personal amount and spousal amount increased to $16,000 for 2019.

    - Corporate tax rate for small businesses reduced from 4% to 3% effective July 1, 2019.

Nunavut Dividend Tax Credit

Nunavut Dividend Tax Credit for Eligible Dividends

NU Income Tax Act, 2000 s. 2.32

The dividend tax credit for dividends eligible for the eligible 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 eligible dividend tax credit as follows:

Nunavut Eligible Dividend Tax Credit
Year 2009 2010 2011 2012+
Gross-up % 45% 44% 41% 38%
eligible 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 eligible dividends.  See the Eligible 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 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 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
2019+ 15% 20% 2.61% 3.0%
2018 16% 20% 2.76% 3.2%
2016/2017 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 Volunteer Firefighters' Tax Credit

A tax credit of $570 for 2016 ($578 for 2017) can be deducted from Nunavut income tax otherwise payable on Form NU428 of the tax return.  This is a non-refundable tax credit.  The amount is indexed each year for inflation.  See Line 51 - Volunteer firefighters' tax credit on the Canada Revenue Agency (CRA) website for more information.  See also the federal volunteer firefighter or search and rescue tax credit.

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 $1,500 (2018 and earlier $1,200) per person.

A single parent with net income over $75,000 (2018 and earlier $60,000) is eligible for a supplement of 2% of the excess of net income over $75,000 (2018 and earlier $60,000), to a maximum of $255.12.

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

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

Health Care in Nunavut

Health and Social Services

NU Government Links

Legislative Assembly - Bills

Legislation - Consolidated Statutes and Legislation

Statutes of Nunavut - Annual Volumes - Bills that have been passed.

Department of Finance

Canada Revenue Agency (CRA) Links

NU General Income Tax and Benefit Package

NU Territorial Corporation Tax

Revised: July 21, 2021

 

 

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