If you find yourself wishing there were more hours in the 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 uses a progressive tax structure and has five tax brackets.
- For the 2023 tax year, the federal basic personal amount (BPA) is $15,000 and the Yukon’s base amount is also $15,000.
- There are unique tax credits for residents of Yukon.
Yukon’s income tax brackets and rates for Tax Year 2023
Tax Rate | Tax Bracket | Taxable Annual Income |
6.4% | on the first $53,359 | $53,359 |
9% | on the next $53,358 | over $53,359 up to $106,717 |
10.9% | on the next $58,713 | over $106,717 up to $165,430 |
12.8% | on the next $34,570 | over $165,430 up to $500,000 |
15% | on the portion over $500,000 | over $500,000 |
For federal rates, review the following TurboTax article – Canada’s federal personal income tax brackets and tax rates.
For 2022 tax rates, review this link from the Canadian government.
Yukon’s progressive tax rate structure
As with most provinces, Yukon uses a progressive tax structure and has five tax brackets. 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 amount” or “BPA.” For the 2023 tax year, the federal basic personal amount (BPA) is $15,000 and Yukon’s base amount is also $15,000
Yukon has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Yukon complement similar credits at the federal level, but there are unique credits for residents of Yukon.
Yukon’s provincial tax credits & rebates
- Children’s arts amount – Families 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.
- 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 carbon rebate – A price on pollution is a federal initiative. The Yukon’s carbon rebate program ensures that all revenues are returned to Yukoners. Visit this link from the provincial website 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.