Results are estimates for educational purposes only. Based on 2026 federal and Northwest Territories tax rates. Always consult a qualified accountant.
Northwest Territories income tax overview
The Northwest Territories has a progressive tax system with rates from 5.9% to 14.05%, among the lower overall tax burdens in Canada. The territory's economy is significantly shaped by diamond mining, oil and gas, and government services, with Yellowknife serving as the capital and primary population centre. Like the other northern territories, the Northwest Territories offers a Northern Residents Deduction at the federal level (claimable by residents of all three territories and some northern parts of provinces) that helps offset the genuinely higher cost of living and travel costs associated with life in remote northern communities. The territory charges only the federal GST with no territorial sales tax.
2026 Northwest Territories tax rate
Tax rate
Taxable income
5.9%
Up to $50,597
8.6%
$50,598 – $101,198
12.2%
$101,199 – $164,525
14.05%
Over $164,525
Worked example: $65,000 salary in Northwest Territories
A $65,000 salary in the Northwest Territories results in approximately $3,930 in territorial tax (effective ~6%), plus roughly $7,800 federal tax, $3,665 CPP, and $1,079 EI. Annual take-home is approximately $48,526, or $1,866 bi-weekly.
Key facts: Low 5.9%–14.05% rates · Northern Residents Deduction available · No territorial sales tax (GST only)
Frequently asked questions — Northwest Territories income tax
This is a federal tax deduction available to residents of the Northwest Territories, Yukon, Nunavut, and certain northern parts of provinces, helping offset the higher cost of living and travel expenses associated with remote northern locations.
No. Like Yukon and Nunavut, the Northwest Territories charges only the federal 5% GST, with no additional territorial sales tax.
Diamond mining has been a major economic driver in recent decades, alongside oil and gas, government services, and tourism centred on the territory's northern lights and wilderness.
Yellowknife is by far the largest community and the territorial capital, though the territory includes numerous smaller, often remote communities accessible primarily by air or seasonal roads.
No. Municipalities in the Northwest Territories, including Yellowknife, do not levy local income taxes.