Nunavut Income Tax Calculator 2026

Nunavut tax calculator: $110,000 worked example

Nunavut tax is worked out on Form NU428 using 4 territorial brackets and a 4% credit rate. Take a $110,000 salary. Taxable income after the enhanced CPP deduction is $108,873. Gross Nunavut tax is $5,947.08. Credits on the $19,659 basic personal amount, base CPP and EI are worth $972.06, which leaves $4,975.02 of territorial tax.

Federal tax is $15,352 and CPP and EI come to $5,770, so take-home pay is $83,904, or $3,227 every two weeks. Federal tax is about 3 times territorial tax at this salary, so federal deductions such as RRSP contributions and the northern residents deductions do most of the work in lowering your bill.

Northern residents deductions in Nunavut (line 25500)

Every community in Nunavut is in prescribed zone A, so the full deductions apply. Using the daily amounts in section 110.7 of the Income Tax Act, a resident who kept their own home for the whole year can deduct $8,030. At $110,000 of income that is worth about $2,208 in federal and Nunavut tax. Taxable travel benefits from an employer can add a second deduction.

How to claim northern deductions step by step

• 1. Count the days you lived in Nunavut during the year, and make sure you have six months in a row.
• 2. Decide who in your home claims the basic amount. If you live alone in a home you maintain, you also claim the additional amount.
• 3. Find the travel benefits on your T4 slip (or use the $1,200 standard amount per person), and keep receipts and the lowest return airfare for each trip. Two non-medical trips per person a year; medical trips are unlimited.
• 4. Complete Form T2222 and enter the total on line 25500 of your T1 return.
• 5. Next year, claim the prescribed-zone deduction on your federal TD1 so less tax is withheld during the year.

Nunavut credits and benefits on the return

The CRA lists these Nunavut items for the 2025 return:

• Cost of living supplement (Form NU479): an extra amount for single parents, meaning someone without a spouse or living apart because of a relationship breakdown, who has custody of a child under 18 (or a dependent child 18 or over with an impairment) at least 50% of the time.
• Young children amount: $1,200 for each child under 6 who lived with you at the end of the year (line 58230 of Form NU428), unless someone received a special allowance under the Children’s Special Allowances Act for that child.
• Nunavut child benefit: a basic $58.00 a month per child under 18, reduced once adjusted family net income is above $22,065. It is paid with the Canada child benefit.

Nunavut vs the other territories: after-tax income

Nunavut's top rate of 11.5% and its $19,659 basic personal amount give it the lowest territorial tax of the three territories at every salary we tested, from $20,000 to $1 million. Here are the 2026 results at $110,000, without northern deductions: