2025 Nunavut Tax Brackets: Territorial & Federal Rates

Updated

Find out what tax bracket you are in as well as your marginal and average tax rate for the 2024 and 2025 tax years in Nunavut. Nunavut has the lowest territorial/provincial income tax rates in Canada with a top rate of just 11.5%, compared to 21% in Nova Scotia or 25.75% in Quebec.

Nunavut 2025 territorial tax brackets

Taxable Income Tax Rate
First $53,268 4.0%
Over $53,268 up to $106,537 7.0%
Over $106,537 up to $173,205 9.0%
Over $173,205 11.5%

Nunavut’s basic personal amount for 2025 is approximately $17,925, which is the highest in Canada — meaning more income is effectively tax-free at the territorial level.

Nunavut 2024 territorial tax brackets

Taxable Income Tax Rate
First $53,268 4.0%
Over $53,268 up to $106,537 7.0%
Over $106,537 up to $173,205 9.0%
Over $173,205 11.5%

Federal tax brackets 2025

These are the federal tax rates that apply to all Nunavut residents in addition to territorial taxes:

Taxable Income Tax Rate
First $57,375 15.00%
Over $57,375 up to $114,750 20.50%
Over $114,750 up to $177,882 26.00%
Over $177,882 up to $253,414 29.00%
Over $253,414 33.00%

Federal tax brackets 2024

Taxable Income Tax Rate
$55,867 or less 15.00%
$55,867 to $111,733 20.50%
$111,733 to $173,205 26.00%
$173,205 to $246,752 29.00%
More than $246,752 33.00%

Combined marginal tax rates in Nunavut (2025)

Taxable Income Combined Marginal Rate
First $53,268 19.00%
$53,269 - $57,375 22.00%
$57,376 - $106,537 27.50%
$106,538 - $114,750 29.00%
$114,751 - $173,205 35.00%
$173,206 - $177,882 40.50%
$177,883 - $253,414 40.50%
Over $253,414 44.50%

Nunavut’s top combined rate of 44.50% is the lowest in Canada, nearly 10 percentage points below Nova Scotia (54%) and Newfoundland (54.80%). This makes Nunavut the most tax-friendly jurisdiction for high earners.

Northern Residents Deduction

One of the most significant tax advantages for Nunavut residents is the Northern Residents Deduction (NRD). As a prescribed northern zone, Nunavut residents can claim:

  • Residency deduction: Up to $22/day ($8,030/year) for a single person or $11/day if a common-law partner also claims
  • Travel deduction: Deduction for travel benefits related to medical or personal trips to southern Canada

For a Nunavut resident claiming the full residency deduction, this effectively reduces taxable income by over $8,000 per year — a significant tax savings on top of Nunavut’s already-low rates.

Example tax calculation: $80,000 income in Nunavut

Here is an approximate breakdown for a single individual earning $80,000 in Nunavut:

Territorial tax:

  • First $53,268 × 4.0% = $2,131
  • Next $26,732 ($53,269-$80,000) × 7.0% = $1,871
  • Total territorial ≈ $4,002 (before credits)

Federal tax:

  • First $57,375 × 15.00% = $8,606
  • Next $22,625 ($57,376-$80,000) × 20.50% = $4,638
  • Total federal ≈ $13,244 (before credits)

After basic personal credits and the Northern Residents Deduction, effective total income tax on $80,000 is approximately $12,000-$14,000 — substantially lower than most provinces due to the combination of low rates and the NRD.

How Nunavut compares to other provinces

Province/Territory Top Combined Rate Lowest Rate
Nunavut 44.50% 19.00%
Alberta 48.00% 25.00%
NWT 47.05% 20.90%
Ontario 53.53% 20.05%
British Columbia 53.50% 20.06%
Nova Scotia 54.00% 23.79%
Newfoundland 54.80% 23.70%

Nunavut has the lowest top combined marginal rate and the lowest starting rate of any Canadian province or territory.

Nunavut tax context

Beyond low income tax rates, Nunavut offers additional tax advantages:

  • No territorial sales tax: Only 5% GST applies — see the Nunavut sales tax calculator
  • High basic personal amount: ~$17,925 — the highest in Canada
  • Northern Residents Deduction: Up to $8,030/year in additional deductions
  • Cost of living credits: Various territorial programs help offset the higher cost of living

However, the cost of living in Nunavut is significantly higher than southern Canada due to shipping costs, limited local production, and extreme climate. See the average income in Nunavut for context.

Frequently asked questions

What are the Nunavut tax brackets for 2025?

Nunavut has four brackets: 4.0% on the first $53,268, 7.0% to $106,537, 9.0% to $173,205, and 11.5% over $173,205.

What is the top marginal tax rate in Nunavut?

The top combined rate is 44.50% — the lowest in Canada.

Can Nunavut residents claim the Northern Residents Deduction?

Yes. All Nunavut residents qualify for the NRD, which provides up to $8,030/year in deductions for the residency component alone.

Are Nunavut tax brackets indexed to inflation?

Nunavut’s territorial brackets are indexed to inflation, which means the thresholds adjust annually.

Tax brackets across Canada