Meaning “our land” in Inuktitut, the language of the Inuit, Nunavut is the largest, most northern part of Canada but the least populated than any other province or territory. With only 39,589 residents, they have over 1,877,787 km2 to share.

Key takeaways
  1. Nunavut uses a progressive tax structure and has four different tax brackets. 
  2. The federal basic personal amount (BPA) is $15,000 and Nunavut’s amount is $17,925 
  3. Review the province’s credits to ensure you don’t miss something you may be entitled to.

Nunavut’s income tax rates for the 2023 Tax Year

Tax Rate

Tax Bracket

Taxable Annual Income

4%

on the first $50,877

$50,877

7%

on the next $50,877

over $50,877 up to $101,754

9%

on the next $63,675

over $101,754 up to $165,429

11.5%

on the portion over $165,429

over $165,429

For 2023 tax rates, review this link from the Canadian government

Nunavut’s progressive tax rate structure

As with most provinces, Nunavut uses a progressive tax structure and has four different tax brackets. Nunavut applies the lowest tax rates in the country, and the brackets increase each year based on inflation. Visit Nunavut’s personal income tax page for this year’s tax bracket rates.

There’s an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal amount” or “BPA”. For the 2023 tax year, the federal BPA amount is  $15,000 and Nunavut’s amount is $17,925. 

Nunavut has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Nunavut complement similar credits at the federal level, but there are some unique credits for residents of Nunavut.

Nunavut’s provincial tax credits

  • Nunavut cost of living tax credit: Residents can claim a refundable tax credit of up to $1,200 to offset the high cost of living in Nunavut. 
  • Cost-of-living supplement for single parents: Single parents with more than $60,000 in adjusted net income can claim a refundable tax credit. More information on applying for and receiving this credit can be found here.
  • Volunteer firefighters tax credit: If you volunteered at least 200 hours of community service, you may be eligible for this credit.
  • Education and textbook tax credits: Post-secondary students, full or part-time, can deduct this credit. Review this link from the territorial government of Nunavut for more information.

A complete list of non-refundable tax credits and other credits or deductions for Nunavut residents can be found at the following CRA link: Nunavut tax and credits.