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 39 536 residents, they have over 1,877,787 km2 to share.
Nunavut’s Income Tax Rates for the 2021 Tax Year
Taxable Annual Income
|4%||on the first $46,740||$46,740|
|7%||on the next $46,740||over $46,740 up to $93,480|
|9%||on the next $58,498||over $93,480 up to $151,978|
|11.5%||on the portion over $151,978||over $151,978|
For 2020 tax rates, review this link from the Canadian Government
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.
There’s 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 2021 tax year, the Federal Basic Personal Amount (BPA) is $13,808 and Nunavut amount is $16,467.
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 Tax 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 can 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.
- Volunteer Firefighters Tax Credit: If you have volunteered at least 200 hours of community service, you may be eligible for this credit. This link from the CRA will explain it further.
- Education and textbook tax credits: For post-secondary students, full or part time, can deduct this credit. Review this link (bottom of page) from the territorial government of Nunavut for more information.
Key Points to Remember*:
- Each fiscal year, the tax bracket amount changes.
- Review the province’s credits to ensure you don’t miss something you may be entitled to.
- Provincial credits may change in any given tax year, so be sure to check them to maximize your eligibility options.
*Read the entire above article for specific details.