CRA & Revenu Québec

Northwest Territories Income Tax Brackets, Tax Rates, and Popular Credits

If seeing the northern lights is on your bucket list, then a trip to the Northwest Territories might be in your future. Residents of Northwest Territories get to enjoy northern lights nearly 250 days of the year!

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

Progressive Tax Rate Structure

As with most provinces, Northwest Territories uses a progressive tax structure. The tax brackets increase each year, based on inflation. Visit the CRA’s Northwest Territories page for this year’s tax bracket rates.

Northwest Territories’ Tax Brackets for Tax Year 2019

  • 5.9% in the portion of taxable income that is $43,137 or less
  • 8.6% on the portion over $43,137 up to $86,277
  • 12.2% on the portion over $86,277 up to $140,267
  • 14.05% on the portion of taxable income that is over $140,267

Northwest Territories Credits

  • Cost of living tax credit: This credit helps offset the high cost of living in NWT. If the credit is more than you owe in taxes, you will get a refund for the difference. Learn more.

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References & Resources:

Provincial tax brackets

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