Results are estimates for educational purposes only. Based on 2026 federal and Nunavut tax rates. Always consult a qualified accountant.
Nunavut income tax overview
Nunavut has the lowest tax rates of any province or territory in Canada, ranging from just 4% to 11.5% for the highest earners. Nunavut is Canada's newest, largest by land area, and least populous territory, created in 1999, with a population that is predominantly Inuit and largely concentrated in small, remote communities accessible mainly by air. The territory's low tax rates are intended to help offset the extraordinarily high cost of living in the North, where most goods must be flown or shipped in at significant expense — grocery prices in Nunavut are often dramatically higher than in southern Canada. Iqaluit, the capital, is the largest community, though even it remains small by national standards. Nunavut charges only the federal GST with no territorial sales tax.
2026 Nunavut tax rate
Tax rate
Taxable income
4%
Up to $53,268
7%
$53,269 – $106,537
9%
$106,538 – $173,205
11.5%
Over $173,205
Worked example: $65,000 salary in Nunavut
A $65,000 salary in Nunavut results in approximately $2,860 in territorial tax (effective ~4.4%), plus roughly $7,800 federal tax, $3,665 CPP, and $1,079 EI. Annual take-home is approximately $49,596, or $1,907 bi-weekly — the highest take-home figure in Canada at this salary level.
Key facts: Lowest tax rates in Canada (4%–11.5%) · Extremely high cost of living offsets tax advantage · No territorial sales tax
Frequently asked questions — Nunavut income tax
Nunavut's low rates are designed to help offset the territory's extraordinarily high cost of living, since virtually all goods must be flown or shipped in over long distances, making everyday expenses like groceries significantly more expensive than in southern Canada.
Not entirely — while the tax savings genuinely help, the cost of groceries, fuel, and most consumer goods in Nunavut is often dramatically higher than in southern Canada, meaning take-home pay alone doesn't fully capture purchasing power.
No. Nunavut charges only the federal 5% GST, with no additional territorial sales tax, the same as Yukon and the Northwest Territories.
Nunavut has a small, predominantly Inuit population spread across numerous small, remote communities, with no road connections between most communities — travel is primarily by air.
Yes. As one of Canada's three territories, all Nunavut residents are eligible for the federal Northern Residents Deduction, which helps offset travel and living costs associated with the North.