CRA & Revenu Québec, Tax Basics

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.

Northwest Territories Progressive Tax Rate Structure

As with most provinces, Northwest Territories uses a progressive tax structure with four tax brackets. 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 2020 Tax Year

Tax Rate

Tax Bracket

Taxable Annual Income

5.9%  on the first $43,957   $43,957
8.6%  on the next $43,959  over $43,957 up to $87,916
12.2%  on the next $55,016  over $87,916 up to $142,932
14.05%  on the portion over $142,932  over $142,932

Northwest Territories Credits

  • Northwest Territories 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. More information on applying for and receiving this credit be found in this CRA link.

There is an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2020 tax year, the Federal Basic Personal Amount (BPA) is $13,229, while the Northwest Territories amount is $15,093. 

This TurboTax article provides more information on the federal tax rates, as well as links to other provinces and tax calculators: An Overview of Canada’s Tax Brackets.

Affordable, Professional Tax Help

TurboTax is the software of choice for personal taxes, small businesses, and entrepreneurs. It’s the fast, easy, affordable, accurate way to do your taxes. Answer a few simple questions on our product recommender and we can help guide you to the right edition that will reflect your individual circumstances.

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*TurboTax Live™ Full Service is not available in Quebec.

Provincial tax brackets

Looking for an income tax calculator for your province or territory?

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New Brunswick Tax Brackets New Brunswick tax calculator
Northwest Territories Tax Brackets Northwest Territories tax calculator
Nova Scotia Tax Brackets Nova Scotia tax calculator
Nunavut Tax Brackets Nunavut tax calculator
Ontario Tax Brackets Ontario tax calculator
Prince Edward Island Tax Brackets Prince Edward Island tax calculator
Québec Tax Brackets Quebec tax calculator
Saskatchewan Tax Brackets Saskatchewan tax calculator
Yukon Tax Brackets Yukon tax calculator