Did you know that Nunavut means “many fish” in Inuktitut? Well, then you may be from this remote Canadian territory!
Nunavut has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Nunavut compliment similar credits at the federal level, but there are some unique credits for residents of Nunavut.
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 the Government of Nunavut’s Personal Income Tax page for this year’s tax bracket rates.
Nunavut’s Income Tax Rates for the 2020 Tax Year
Taxable Annual Income
|4%||on the first $46,277||$46,277|
|7%||on the next $46,278||over $46,277 up to $92,555|
|9%||on the next $57,918||over $92,555 up to $150,473|
|11.5%||on the portion over $150,473||over $150,473|
Nunavut Tax Credits
- A complete list of Non-Refundable Tax Credits and other credits or deductions for Nunavut residents can be found in this CRA link: Nunavut Tax and Credits.
- Nunavut Cost of Living Tax Credit: Residents can claim a refundable tax credit up to $1,200 to offset the high cost of living in Nunavut. More information on applying for and receiving this credit be found in this CRA link.
- 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 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 Nunavut amount is $16,304.
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.
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