Use this calculator to find the sales tax on purchases in the Northwest Territories. The NWT charges only the 5% federal GST with no territorial or provincial sales tax, making it one of the lowest sales tax jurisdictions in Canada alongside Alberta, Yukon, and Nunavut.
You can also enter the total amount after tax to reverse-calculate the pre-tax price.
How sales tax works in the Northwest Territories
The Northwest Territories does not charge a territorial sales tax. The only sales tax that applies is the federal Goods and Services Tax (GST) at 5%.
| Component | Rate |
|---|---|
| Federal GST | 5% |
| Territorial sales tax | 0% |
| Total sales tax | 5% |
This is significantly lower than provinces with HST (up to 15% in Atlantic Canada) or provinces that charge GST + PST separately (up to 12% in BC and Manitoba).
Quick GST calculation examples
Here are common purchase amounts with the 5% NWT GST applied:
| Purchase Price | GST (5%) | Total Cost |
|---|---|---|
| $50 | $2.50 | $52.50 |
| $100 | $5.00 | $105.00 |
| $500 | $25.00 | $525.00 |
| $1,000 | $50.00 | $1,050.00 |
| $5,000 | $250.00 | $5,250.00 |
| $25,000 | $1,250.00 | $26,250.00 |
| $50,000 | $2,500.00 | $52,500.00 |
Formula: Total = Purchase Price × 1.05
To find the pre-tax amount from a total: Pre-tax = Total ÷ 1.05
What is exempt from GST in the NWT?
Even the 5% GST does not apply to everything. Some items are zero-rated (0% GST) or exempt:
Zero-rated items (0% GST):
- Basic groceries (milk, bread, vegetables, meat, etc.)
- Prescription drugs
- Most medical devices
- Agricultural products
Exempt items (no GST charged):
- Most health and dental services
- Educational services (tuition)
- Childcare services
- Residential rent
- Most financial services
GST on major purchases in the NWT
The 5% GST still adds up on large purchases:
| Purchase | Example Price | GST | Total |
|---|---|---|---|
| New vehicle | $40,000 | $2,000 | $42,000 |
| Home renovation | $25,000 | $1,250 | $26,250 |
| Furniture set | $3,000 | $150 | $3,150 |
| Laptop | $1,500 | $75 | $1,575 |
New homes: GST applies to new home purchases in the NWT. Buyers may qualify for the federal GST New Housing Rebate (up to $6,300) which reduces the effective tax on new builds priced under $450,000.
How the NWT compares to other provinces
| Province/Territory | GST | PST | HST | Total Rate |
|---|---|---|---|---|
| Northwest Territories | 5% | 0% | — | 5% |
| Alberta | 5% | 0% | — | 5% |
| Yukon | 5% | 0% | — | 5% |
| Nunavut | 5% | 0% | — | 5% |
| British Columbia | 5% | 7% | — | 12% |
| Manitoba | 5% | 7% | — | 12% |
| Ontario | — | — | 13% | 13% |
| Quebec | 5% | 9.975% | — | 14.975% |
| New Brunswick | — | — | 15% | 15% |
| Nova Scotia | — | — | 15% | 15% |
| Newfoundland | — | — | 15% | 15% |
| PEI | — | — | 15% | 15% |
The NWT ties with Alberta, Yukon, and Nunavut for the lowest sales tax in Canada. Compared to Atlantic provinces at 15%, NWT residents save 10% on every taxable purchase.
GST credit for NWT residents
NWT residents can offset GST costs through the GST/HST credit — a quarterly payment from the CRA for low and moderate-income individuals and families:
- Single person: Up to $519/year
- Married/common-law couple: Up to $680/year
- Per child under 19: Additional $179/year
The credit is automatic when you file your tax return. The Northern Residents Deduction also provides additional tax relief for NWT residents.
NWT tax context
Beyond sales tax, NWT residents benefit from a relatively moderate overall tax burden:
- Territorial income tax: The NWT has territorial tax brackets with rates from 5.90% to 14.05%
- No payroll tax: Unlike some provinces, the NWT does not charge a payroll tax
- Northern Residents Deduction: Significant tax savings for residents of prescribed northern zones
For income planning, see the NWT hourly to salary calculator and the average income in the NWT.
Frequently asked questions
What is the sales tax in the Northwest Territories?
The NWT charges only the 5% federal GST. There is no territorial or provincial sales tax.
Does the NWT have HST?
No. The NWT does not use the Harmonized Sales Tax system. Only the federal 5% GST applies.
What items are exempt from GST in the NWT?
Basic groceries, prescription drugs, most medical devices, residential rent, health services, and educational services are zero-rated or exempt from GST.
Why is there no territorial sales tax in the NWT?
The NWT, along with Alberta, Yukon, and Nunavut, has chosen not to implement a territorial/provincial sales tax. This keeps the cost of goods lower for residents who already face higher prices due to northern shipping and supply chain costs.
Related guides
- NWT tax brackets
- NWT land transfer tax calculator
- Average income in the NWT
- Canada sales tax by province
- RRSP contribution limit guide
- TFSA contribution limit guide
