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Territories -> Yukon

Yukon Income Tax

Yukon/Federal tax brackets and marginal tax rates

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

Canadian Tax 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.

Yukon COVID-19 Information and Support

COVID-19 Resources - federal and provincial/territorial

Yukon 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.

As per the Yukon 2020 Budget, Yukon's basic personal amount will mirror changes made to the federal basic personal amount.

Yukon Dividend Tax Credit

Yukon Dividend Tax Credit for Eligible Dividends

YT Income Tax Act s. 6(39)

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 dividend tax credit is revised automatically now if there is a change in the federal or Yukon general corporate income tax rate, highest personal income tax (PIT) rate, or gross-up percentage.  The following table shows the resulting rates.  The 2015 rate changed slightly due to the increase in the highest PIT rate.  The rate for 2018 and later years is reduced because the Yukon 2017 Budget reduced the general corporate income tax rate from 15% to 12%.

     SK Dividend Tax Credit Rate for Eligible Dividends
Year Gross-up
Rate
% of Grossed-up
Dividend
% of Actual
Dividend
2018+ 38% 12.02% 16.59%
2015-17 38% 15.00% 20.70%
2012-14 38% 15.08% 20.81%
2011 41% 15.08% 21.26%
2010 44% 10.83% 15.60%
2009 45% 11.00% 15.95%

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 Yukon tables of marginal tax rates include the marginal tax 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 eligible dividend tax credit.  See the Eligible Dividend Tax Credit article for details.

Yukon Dividend Tax Credit for Non-eligible Dividends

YT Income Tax Act s. 6(39)

The Yukon Income Tax Act was revised in the fall of 2010, for tax years 2011 and later.  The dividend tax credit for non-eligible, or non-eligible (small business) dividends changes automatically now if there is a change in the federal or Yukon corporate income tax rate, highest personal income tax rate, or gross-up percentage.

The Yukon 2015 Budget Bill 86 made a change to the calculation of the non-eligible dividend tax credit calculation, in relation to the creation of a new tax bracket with a threshold equal to the small business limit, with a tax rate equal to the general corporate tax rate, which is paid by small businesses on taxable income above the small business limit.  The 2017 Budget set the tax rate for the highest tax threshold at 15% instead of leaving it dependent on the general corporate tax rate.  The 2017 Budget also reduced the small business tax rate to 2% from 3%, effective July 1, 2017.  This changes the 2018 dividend tax credit rate.

The Yukon 2020 Budget reduces the small business tax rate for 2021 to zero.  This automatically changes the 2021 non-eligible dividend tax credit rate to 0.67% of the grossed-up (taxable) dividend.

Yukon Dividend Tax Credit Rate for Non-Eligible Dividends
Year Gross-up
Rate
%of Federal
Gross-up
% of Grossed-up
Dividend
% of Actual
Dividend
2021+ 15% 5.10% 0.67% 0.77%
2019-20 15% 17.62% 2.30% 2.64%
2018 16% 16.42% 2.26% 2.63%
2016-17 17% 21.63% 3.14% 3.68%
2015 18% 20.81% 3.17% 3.75%
2014 18% 26.42% 4.03% 4.76%
2011-13 25% 22.55% 4.51% 5.64%
2006-10 25% 22.24% 4.45% 5.56%

Yukon Low-income Family Tax Credit

The Yukon 2015 Budget repealed this tax credit, effective for 2015 and later taxation years.  The Yukon Child Tax Benefit is increased for the 2015 and later taxation years.

bulletwas available for low income individuals or families
bulletif married or living common-law, must be claimed by spouse with higher net income
bulletmaximum credit was 80% of Yukon tax
bulletincome for the calculation of this credit did 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

YT Children's arts tax credit

Yukon Government Links

Department of Finance

Legislation

Legislative Assembly - Progress of Bills

Income Tax

Health Care in the Yukon

Health and Social Services

Health Care Coverage - includes registration information

Pharmacare

Canada Revenue Agency (CRA) Links

YT Personal income tax and benefit package

YT Corporation income tax

Government benefits, programs and services

Yukon Budgets

Yukon 2021 Budget - March 4, 2021

There were no new tax measures announced in the budget, but the Fiscal and Economic Outlook indicated that there were January 1, 2021 increases in tax rates for:

bullettobacco - by one cent per cigarette and one cent per gram of loose tobacco
bulletinsurance premiums

Yukon 2020 Budget - March 5, 2020

bullet Small business corporate income tax rate to be reduced to zero effective January 1, 2021.
bullet Insurance premium tax will increase to 4% effective January 1, 2021.
bullet Small Business Investment Tax Credit program will be expanded in 2020 to allow medium-sized businesses to apply, and it will be renamed the Business Investment Tax Credit.
bullet Yukon's basic personal amount (BPA), spousal and eligible dependant amounts will mirror changes made to the federal basic personal amount.

See Bill No. 8, Budget Measures Implementation Act, 2020 and subsequent Amendments - Assent March 16, 2020.

Yukon 2019 Budget - March 7, 2019

No tax changes were announced.  Above link is to Yukon Budget website.

Yukon 2018 Budget - March 1, 2018

No tax changes were announced.  Above link is to Yukon Budget website.

Yukon 2017 Budget - April 27, 2017

- on Yukon website.  See also Bill 3, Budget Measures Implementation Act, 2017 (pdf).

    - General corporate tax rate reduced from 15% to 12%, effective July 1, 2017.

    - The manufacturing and processing profits deduction rate is reduced from 12.5% to 9.5% as of July 1, 2017.

    - The small business manufacturing and processing profits deduction rate is reduced from 1.5% to 0.5% as of July 1, 2017.

    - The highest personal income tax rate is set at 15% instead of being linked to the corporate income tax rate.

    - Small business corporate tax reduced from 3% to 2%, effective July 1, 2017.

    - Tax rate on cigarettes and loose tobacco will increase from 21 cents per cigarette or gram to 25 cents on July 1, 2017, rising to 30 cents on April 1, 2018.  The tax will increase by the consumer price index each January 1 starting in 2019.

Revised: September 14, 2021

 

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