Nunavut Income Tax Calculator 2026

Nunavut Income Tax: 2026 Overview

Nunavut has the lowest provincial or territorial income-tax rates in Canada. The four-bracket system applies rates of 4%, 7%, 9% and 11.5%, with the top rate kicking in at roughly $181,439. Combined with the federal top rate of 33%, residents face a maximum combined marginal rate of 44.5% — the lowest of any Canadian jurisdiction. While Nunavut's income-tax burden looks favourable on paper, the territory's extreme cost of living (food, fuel, shipping and housing prices that can be 2x to 4x southern averages) largely offsets the headline savings for residents of Iqaluit, Rankin Inlet, Cambridge Bay and elsewhere in the territory.

The basic personal amount (BPA) for 2026 is $19,659, well above the federal BPA and the third-highest of any Canadian jurisdiction, after Alberta ($22,769) and Saskatchewan ($20,381). Nunavut offers a refundable Cost of Living Tax Credit and a Cost of Living Supplement to help residents manage northern living costs. Residents may also claim the federal Northern Residents Deduction, which includes a residency component (Zone A communities) and a travel deduction for eligible employer-paid trips. Nunavut does not levy a territorial sales tax or health-care premium, but it does have a 2% payroll tax on employees (see below).

Nunavut 2026 Tax Brackets

Nunavut does not impose a surtax or health-care premium, and the territory has no sales tax — but it does levy a 2% payroll tax on employees, which employers withhold from gross pay and remit to the Government of Nunavut. The calculator above subtracts it from take-home pay and counts it in the effective rate (at $75,000 it is $1,500 a year). The basic personal amount of $19,659 in 2026 sits among the most generous in Canada. Refundable territorial credits include the Nunavut Cost of Living Tax Credit, the Nunavut Volunteer Firefighters Tax Credit, and the Nunavut Child Benefit. Residents in eligible northern zones can claim the federal Northern Residents Deduction (NRD), which the calculator above does not deduct. It covers a residency portion (a basic $11/day in Zone A communities, doubling to $22/day if no one else in the household claims it) and a travel portion. On income tax alone, Nunavut is the most affordable Canadian jurisdiction; however, this benefit is largely offset by the territory's extraordinarily high cost of living.