Yukon has a relatively moderate tax structure with five territorial brackets ranging from 6.40% to 15.00%. Combined with federal rates, the top marginal rate of 48.00% is significantly lower than provinces like Nova Scotia (54.00%) or Newfoundland (54.80%). Yukon residents also benefit from the Northern Residents Deduction.
Yukon 2025 territorial tax brackets
| Taxable Income | Tax Rate |
|---|---|
| First $57,375 | 6.40% |
| $57,375 to $114,750 | 9.00% |
| $114,750 to $177,882 | 10.90% |
| $177,882 to $500,000 | 12.80% |
| Over $500,000 | 15.00% |
The basic personal amount in Yukon for 2025 is $16,129, meaning the first $16,129 of income is effectively tax-free at the territorial level.
Yukon 2024 territorial tax brackets
| Taxable Income | Tax Rate |
|---|---|
| First $55,867 | 6.40% |
| $55,867 to $111,733 | 9.00% |
| $111,733 to $173,205 | 10.90% |
| $173,205 to $500,000 | 12.80% |
| Over $500,000 | 15.00% |
The bracket thresholds increased for 2025 due to inflation indexing, while the tax rates remain the same.
Federal tax brackets 2025
| Taxable Income | Tax Rate |
|---|---|
| First $57,375 | 15.00% |
| $57,375 to $114,750 | 20.50% |
| $114,750 to $158,468 | 26.00% |
| $158,468 to $220,000 | 29.00% |
| Over $220,000 | 33.00% |
Federal tax brackets 2024
| Taxable Income | Tax Rate |
|---|---|
| First $55,867 | 15.00% |
| $55,867 to $111,733 | 20.50% |
| $111,733 to $154,906 | 26.00% |
| $154,906 to $220,000 | 29.00% |
| Over $220,000 | 33.00% |
Combined federal and Yukon marginal tax rates (2025)
| Taxable Income | Federal Rate | Yukon Rate | Combined Rate |
|---|---|---|---|
| First $57,375 | 15.00% | 6.40% | 21.40% |
| $57,375 to $114,750 | 20.50% | 9.00% | 29.50% |
| $114,750 to $158,468 | 26.00% | 10.90% | 36.90% |
| $158,468 to $177,882 | 29.00% | 10.90% | 39.90% |
| $177,882 to $220,000 | 29.00% | 12.80% | 41.80% |
| $220,000 to $500,000 | 33.00% | 12.80% | 45.80% |
| Over $500,000 | 33.00% | 15.00% | 48.00% |
The top combined rate of 48.00% is relatively low compared to most provinces — only Nunavut (44.50%) is lower.
Example: Tax on $80,000 income in Yukon (2025)
Yukon territorial tax:
- $57,375 × 6.40% = $3,672
- ($80,000 - $57,375) × 9.00% = $2,036
- Total territorial tax: $5,708
Federal tax:
- $57,375 × 15.00% = $8,606
- ($80,000 - $57,375) × 20.50% = $4,638
- Total federal tax: $13,244
Combined tax on $80,000: approximately $18,952 (before credits)
After the basic personal amounts and other credits, the effective tax would be lower. This is comparable to Alberta and lower than Ontario at the same income level.
Northern Residents Deduction
All Yukon residents can claim the Northern Residents Deduction (NRD), which includes:
- Residency deduction — up to $22 per day ($8,030 per year) for living in a prescribed northern zone
- Travel deduction — for up to two trips per year to the nearest designated city (usually Vancouver or Edmonton)
The residency deduction directly reduces taxable income. For someone in the 29.50% combined bracket, the full $8,030 deduction saves approximately $2,369 in tax per year. See the Nunavut tax brackets for how this same deduction applies in another northern territory.
How Yukon compares to other provinces
| Province/Territory | Top Combined Rate | Lowest Rate |
|---|---|---|
| Nunavut | 44.50% | 19.00% |
| Yukon | 48.00% | 21.40% |
| Alberta | 48.00% | 25.00% |
| Ontario | 53.53% | 20.05% |
| British Columbia | 53.50% | 20.06% |
| Quebec | 53.31% | 26.53% |
| Nova Scotia | 54.00% | 23.79% |
| Newfoundland | 54.80% | 23.70% |
Yukon tax credits and deductions
In addition to the Northern Residents Deduction, Yukon residents can claim:
- Basic personal amount — $16,129 (2025) tax-free at the territorial level
- Children’s fitness credit — Yukon offers a territorial fitness credit for children’s activities
- RRSP contributions — reduce taxable income; see the RRSP contribution limit guide
- TFSA — investment growth is tax-free; see the TFSA contribution limit guide
Frequently asked questions
What are the Yukon tax brackets for 2025?
Yukon has five brackets: 6.40% on the first $57,375, 9.00% to $114,750, 10.90% to $177,882, 12.80% to $500,000, and 15.00% on income over $500,000.
What is the top combined tax rate in Yukon?
The top combined federal and Yukon rate is 48.00% on income over $500,000.
Do Yukon residents get the Northern Residents Deduction?
Yes. Yukon residents can claim up to $22 per day ($8,030 per year) to reduce taxable income.
Related guides
- Yukon mortgage rates
- Yukon land transfer tax calculator
- Nunavut tax brackets
- RRSP contribution limit guide
- TFSA contribution limit guide
- Income percentile calculator
