CRA & Revenu Québec, Provincial

Yukon: Personal Income Tax Brackets, Tax Rates, and Credits

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’s Income Tax Brackets and Rates for 2021

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’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.

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 the Yukon amount is the same.

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 Tax Credits & Rebates

  • Children’s arts amountFamilies with children under the age of 16, can claim up to $500 per child, if the child is registered in an artistic, cultural, recreational or developmental program. This link will provide you with more detailed information from the CRA.
  • Children’s fitness tax credit –Although eliminated on the federal level a few years ago; Yukoners with children under the age of 16 who are registered in a physical activity from a prescribed program, can claim up to $1,000 per child of this refundable credit. To understand more about this credit, the CRA explains it here.
  • 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 doesn’t pay more tax than if they resided on non-settlement land. More information on claiming this credit can be found at this CRA link.
  • Yukon Business Carbon Price RebateIf you own a business in the Yukon or earn income from a rental property while you live there, you may be able to receive this tax rebate. Visit this link from the CRA and this one from the province for more detailed information.

A complete list of Non-Refundable Tax Credits and other credits or deductions for Yukon residents can be found at the following CRA link: Yukon Tax and Credits.

Key Points to Remember*:

  • Tax bracket amounts increase yearly due to inflation.
  • Understand the difference between provincial rates and federal ones.
  • 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.