Results are estimates for educational purposes only. Based on 2026 federal and Yukon tax rates. Always consult a qualified accountant.
Yukon income tax overview
Yukon has one of the lowest provincial/territorial tax burdens in Canada, with a progressive system ranging from 6.4% to 15% for the highest earners. As one of Canada's three northern territories, Yukon's small population (concentrated mostly around Whitehorse, the capital) and remote location mean the cost of many goods is higher than in southern Canada, even though the tax rate itself is relatively favourable. Yukon's economy is built around mining, tourism (particularly drawing on its Gold Rush history and northern wilderness), and government services, with a significant share of employment tied to federal and territorial government roles. Yukon uses GST only, with no territorial sales tax, keeping the combined sales tax burden at just 5%.
2026 Yukon tax rate
Tax rate
Taxable income
6.4%
Up to $57,375
9%
$57,376 – $114,750
10.9%
$114,751 – $177,882
12.8%
$177,883 – $500,000
15%
Over $500,000
Worked example: $65,000 salary in Yukon
A $65,000 salary in Yukon results in approximately $4,160 in territorial tax (effective ~6.4%), plus roughly $7,800 federal tax, $3,665 CPP, and $1,079 EI. Annual take-home is approximately $48,296, or $1,857 bi-weekly — among the highest take-home figures in Canada at this salary level.
Key facts: Low 6.4%–15% rates · No territorial sales tax (GST only, 5%) · Small population concentrated in Whitehorse
Frequently asked questions — Yukon income tax
Yukon's territorial government has structured its tax system to remain competitive and attract residents and workers to the North, where the cost of many goods and services is otherwise elevated due to remoteness and transportation costs.
No. Yukon charges only the federal 5% GST, with no separate territorial sales tax, similar to the Northwest Territories and Nunavut.
Mining (particularly gold and other minerals), tourism built around the territory's Gold Rush heritage and wilderness, and government services form the backbone of Yukon's economy.
Yes, despite favourable tax rates, the cost of many goods — particularly anything transported from southern Canada — is higher in Yukon due to the territory's remoteness, which can offset some of the tax advantage.
No. Yukon municipalities, including Whitehorse, do not levy local income taxes.