If you find yourself wishing there were more hours in day, you should check out Yukon. Also known as the “land of the midnight sun”, Yukon boasts almost continuous sun for three months a year.
Yukon has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Yukon compliment similar credits at the federal level, but there are many unique credits for residents of Yukon.
Yukon’s Progressive Tax Rate Structure
As with most provinces, Yukon uses a progressive tax structure and has five tax brackets. The brackets increase each year, based on inflation. Visit the Yukon Government’s Personal Income Tax page for more information.
Yukon’s Income Tax Brackets and Rates for 2020
Tax Rate |
Tax Bracket |
Taxable Annual Income |
| 6.4% | on the first $48,535 | $48,535 |
| 9% | on the next $48,534 | over $48,535 up to $97,060 |
| 10.9% | on the next $53,404 | over $97,060 up to $150,473 |
| 12.8% | on the next $349,527 | over $150,473 up to $500,000 |
| 15% | on the portion over $500,000 | over $500,000 |
Yukon Tax Credits
- A complete list of Non-Refundable Tax Credits and other credits or deductions for Yukon residents can be found in this CRA link: Yukon Tax and Credits.
- Yukon First Nations Income Tax Credit: This credit is available to people living on Yukon First Nations Settlement Lands of an eligible First Nation and is part of the tax-sharing arrangement. It ensures that a taxpayer living on settlement land does not pay more tax than if they resided on non-settlement land. More information on claiming this credit can 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 Yukon amount is $13,329.
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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