What is Nunavut's top combined income tax rate in 2026?

Nunavut's top combined federal-provincial rate is 44.50% in 2026: the federal 33% top rate plus the Nunavut 11.5% top provincial rate. The top combined rate applies to taxable income above $258,482 (the federal top bracket threshold). Below that threshold, the combined marginal rate steps down through the federal and provincial bracket schedules.

What is the Nunavut Basic Personal Amount for 2026?

The Nunavut Basic Personal Amount is $19,659 for 2026. The non-refundable credit reduces provincial tax by $19,659 multiplied by 4.0%, producing a credit of approximately $786. The federal BPA is separate at $16,452 and produces a federal credit of approximately $2,303 at the 14% rate.

How many income tax brackets does Nunavut have?

Nunavut has 4 provincial income tax brackets for 2026, ranging from 4.0% to 11.5%. The federal five brackets combine with the provincial brackets, so the combined marginal rate steps up through both schedules. The combined top rate of 44.50% applies above $258,482 of taxable income.

At what income does Nunavut's top provincial bracket begin?

The 11.5% top Nunavut provincial rate applies to taxable income above $$181,439. Below the federal top bracket of $258,482, the federal marginal rate is 29% rather than 33%, so the combined marginal rate at the bottom of the Nunavut top bracket is below the 44.50% combined top rate.

Are RRSP and RRIF withdrawals taxed at the Nunavut combined rate?

Yes. RRSP and RRIF withdrawals are taxable income in the year received and are taxed at the resident's combined marginal rate. A Nunavut resident with $50,000 of other income who withdraws $40,000 from an RRIF faces $90,000 of total taxable income. The $40,000 withdrawal is taxed at the combined marginal rate at that bracket. Dollar amounts vary with the bracket schedule above.

How does the Nunavut provincial tax compare to neighbouring jurisdictions?

Nunavut's combined top rate of 44.50% sits within the Canadian range of 44.5% (Nunavut) to 54.8% (Newfoundland and Labrador). At mid-range incomes, the comparison depends on each province's BPA and lower-bracket structure rather than the top rate. Use the calculator with the same income figure on each provincial calculator to compare directly.

Does the calculator include NU refundable credits like low-income reductions?

No. The calculator computes base federal and Nunavut provincial income tax using the bracket schedules and the federal and provincial Basic Personal Amount credits only. Refundable provincial credits (low-income reductions, cost-of-living rebates, carbon rebates) reduce or offset tax owed but are not modelled in the base calculation. Reported figures show the underlying bracket-and-BPA tax.

How is the federal Basic Personal Amount phased down?

The federal BPA is $16,452 for 2026 at incomes up to $181,440 of net income. From $181,440 to $258,482, the BPA is reduced linearly to $14,829. Above $258,482, the reduced $14,829 BPA applies. The phase-down increases net federal tax by approximately $227 across the phase-down range. Nunavut provincial BPA does not phase down.

What about Quebec residents earning income from Nunavut?

Quebec residents file a separate provincial return with Revenu Québec and are subject to a 16.5% federal tax abatement reducing federal tax payable. Nunavut provincial tax does not apply to Quebec residents on Nunavut-source income unless the income is earned through a permanent establishment in Nunavut. Use the Quebec calculator for Quebec residents.

Nunavut Combined Income Tax Calculator

Name: Nunavut Income Tax Brackets 2026
Creator: Nunavut Department of Finance
License: Government of Canada Open Government Licence

Reviewed by Ben Stevenson, Editor Updated April 25, 2026 Source Nunavut Finance 2026

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Nunavut levies provincial income tax on top of federal income tax. The 2026 combined top marginal rate is 44.50%, applied at the top federal bracket. Nunavut has the lowest top territorial or provincial marginal rate in Canada at 11.5% and the highest territorial Basic Personal Amount at $19,659. The combined top rate of 44.5% applies to income above $258,482 (where the federal 33% bracket begins) and is the lowest in Canada. The calculator above applies both layers of tax for 2026 and shows the combined total, marginal rate, average rate, and after-tax income.

How much income tax does a Nunavut resident pay on $65,000?

At $65,000 of taxable income in 2026, a Nunavut resident owes approximately $7,218 in net federal income tax and $2,547 in net provincial tax, for a combined total of approximately $9,765. The after-tax income is approximately $55,235. The combined marginal rate at $65,000 is approximately 27.50%.

How Nunavut income tax is calculated

Federal component

The federal calculation is identical across all provinces and territories. Five brackets apply for 2026: 14% on the first $58,523, 20.5% on $58,524 to $117,045, 26% on $117,046 to $181,440, 29% on $181,441 to $258,482, and 33% on income above $258,482. The federal Basic Personal Amount is $16,452, generating a non-refundable credit of approximately $2,303 at the 14% rate. The BPA phases down to $14,829 for incomes above $258,482.

Nunavut provincial brackets

Nunavut applies 4.0% on the first $55,801; 7.0% on income from $55,802 to $111,602; 9.0% on income from $111,603 to $181,439; and 11.5% on income above $181,439. The Basic Personal Amount is $19,659, generating a non-refundable credit of approximately $786 at the 4.0% lowest-bracket rate. Both layers of tax apply to the same taxable income, and credits are computed independently.

Combined marginal rate

The combined marginal rate at any income equals the federal marginal rate at that income plus the NU marginal rate at that income. At the top of the schedule, the 33% federal rate combined with the 11.5% NU rate produces the 44.50% top combined marginal rate. The combined marginal rate determines the tax cost of an additional dollar of income, RRSP contribution, or RRIF withdrawal.

Verified against source

Bracket thresholds and rates: Nunavut Department of Finance. Federal brackets and Basic Personal Amounts: Canada Revenue Agency — Canadian income tax rates for individuals. Payroll formula reference: CRA T4127 Payroll Deductions Formulas, 122nd Edition (January 2026).

Nunavut tax brackets at a glance

Taxable income	Provincial rate
$0 – $55,801	4.0%
$55,802 – $111,602	7.0%
$111,603 – $181,439	9.0%
$181,440 +	11.5%

Worked example: a $100,000 earner in Nunavut

At $100,000 of taxable income, federal tax is calculated by applying the 14% rate to the first $58,523 ($8,193) and the 20.5% rate to the remaining $41,477 ($8,503), for gross federal tax of approximately $16,696. The federal BPA credit reduces this by 14% of $16,452, or approximately $2,303, leaving net federal tax of approximately $14,393.

Provincial tax is calculated by applying the NU bracket schedule to the same $100,000 of taxable income and subtracting the NU BPA credit of approximately $786. The combined federal-plus-provincial total at $100,000 is the figure shown in the “Combined tax” row of the calculator.

Edge cases and rules not captured

Nunavut Cost of Living Tax Credit

Nunavut offers a refundable Cost of Living Tax Credit and a Cost of Living Supplement to residents. The credits are designed to offset the higher cost of living in Nunavut and are paid even when no territorial tax is owed. They are not captured in the base bracket calculation. Residents living in a prescribed northern zone for at least six consecutive months may also claim the federal Northern Residents Deductions on Form T2222.

RRSP and RRIF withdrawals

RRSP and RRIF withdrawals are taxable income in the year received and are taxed at the resident’s combined marginal rate. A Nunavut resident drawing a $40,000 RRIF withdrawal at $50,000 of other income faces taxable income of $90,000 and a combined marginal rate set by the bracket schedule. The withdrawal increases tax payable by the marginal rate multiplied by $40,000.

Capital gains and dividends

Capital gains are 50% taxable up to $250,000 of net capital gains per year (2026 inclusion threshold). Eligible Canadian dividends receive a federal dividend tax credit and a NU dividend tax credit; non-eligible dividends receive smaller credits. The calculator above reflects ordinary income (employment, pension, RRSP/RRIF) and does not adjust for the dividend gross-up or the capital gains inclusion rate.

Quebec residents are calculated separately

Quebec residents file a separate provincial return with Revenu Québec and are subject to a 16.5% federal tax abatement that reduces federal tax payable. Nunavut residents file a single combined federal-and-NU return with the CRA, and the abatement does not apply.

Federal and Nunavut tax interaction

Federal income tax applies to all Canadian residents regardless of province or territory of residence. The federal brackets and rates are the same for all Canadians: 15% on the first $57,375, 20.5% on $57,376 to $114,750, 26% on $114,751 to $177,882, 29% on $177,883 to $253,414, and 33% above $253,414 (2025 rates). Nunavut tax is calculated separately and added to the federal amount to arrive at the combined tax. The combined marginal rate at any income level is the sum of the federal marginal rate and the applicable Nunavut bracket rate. The federal Basic Personal Amount (BPA) is $16,129 for 2025, generating a 15% federal credit of $2,419. Nunavut’s own basic personal amount generates a separate provincial credit at the lowest Nunavut rate.

Using the calculator for RRSP decisions in Nunavut

The most practical use of the combined income tax calculator for Nunavut residents is to estimate the immediate tax saving from an RRSP contribution. Enter the current taxable income, note the marginal rate, then subtract the planned RRSP contribution amount and note the revised tax. The difference is the expected refund from the RRSP contribution. For example, if the marginal rate is 28% at $70,000 of income, a $5,000 RRSP contribution generates a combined tax saving of approximately $1,400 ($700 federal + $700 provincial, depending on the Nunavut rate at that bracket). This calculation is the correct way to assess an RRSP contribution — not the average rate.

Residency and Nunavut taxation

Province of residence for tax purposes is determined by where the individual is ordinarily resident on December 31 of the tax year. A person who moved from Nunavut to another province on December 15 is still taxed as a Nunavut resident for the full year (except for the provincial portion, which follows the province of residence on December 31). Individuals who move during the year must ensure they update their address with CRA by December 31 to be taxed under the correct provincial rates. This is particularly relevant for Nunavut residents in employment that involves frequent inter-provincial moves.

Methodology

Federal income tax is computed by applying the 2026 five-bracket federal schedule and subtracting the BPA credit ($16,452 at 14%, with phase-down from $181,440 to $258,482). Nunavut provincial tax is computed by applying the NU brackets to the same taxable income and subtracting the NU BPA credit ($19,659 multiplied by 4.0%). Refundable provincial credits and tax reductions are not modelled. The result reflects the base income tax on ordinary income at the stated taxable income level.

Frequently asked questions

What is Nunavut's top combined income tax rate in 2026?: Nunavut's top combined federal-provincial rate is 44.50% in 2026: the federal 33% top rate plus the Nunavut 11.5% top provincial rate. The top combined rate applies to taxable income above $258,482 (the federal top bracket threshold). Below that threshold, the combined marginal rate steps down through the federal and provincial bracket schedules.
What is the Nunavut Basic Personal Amount for 2026?: The Nunavut Basic Personal Amount is $19,659 for 2026. The non-refundable credit reduces provincial tax by $19,659 multiplied by 4.0%, producing a credit of approximately $786. The federal BPA is separate at $16,452 and produces a federal credit of approximately $2,303 at the 14% rate.
How many income tax brackets does Nunavut have?: Nunavut has 4 provincial income tax brackets for 2026, ranging from 4.0% to 11.5%. The federal five brackets combine with the provincial brackets, so the combined marginal rate steps up through both schedules. The combined top rate of 44.50% applies above $258,482 of taxable income.
How much tax does a Nunavut resident pay on $65,000?: At $65,000 of taxable income in 2026, a Nunavut resident pays approximately $7,218 in net federal tax and $2,547 in net provincial tax, for a combined total of approximately $9,765. After-tax income is approximately $55,235. The combined marginal rate at $65,000 is approximately 27.50%.
At what income does Nunavut's top provincial bracket begin?: The 11.5% top Nunavut provincial rate applies to taxable income above $$181,439. Below the federal top bracket of $258,482, the federal marginal rate is 29% rather than 33%, so the combined marginal rate at the bottom of the Nunavut top bracket is below the 44.50% combined top rate.
Are RRSP and RRIF withdrawals taxed at the Nunavut combined rate?: Yes. RRSP and RRIF withdrawals are taxable income in the year received and are taxed at the resident's combined marginal rate. A Nunavut resident with $50,000 of other income who withdraws $40,000 from an RRIF faces $90,000 of total taxable income. The $40,000 withdrawal is taxed at the combined marginal rate at that bracket. Dollar amounts vary with the bracket schedule above.
How does the Nunavut provincial tax compare to neighbouring jurisdictions?: Nunavut's combined top rate of 44.50% sits within the Canadian range of 44.5% (Nunavut) to 54.8% (Newfoundland and Labrador). At mid-range incomes, the comparison depends on each province's BPA and lower-bracket structure rather than the top rate. Use the calculator with the same income figure on each provincial calculator to compare directly.
Does the calculator include NU refundable credits like low-income reductions?: No. The calculator computes base federal and Nunavut provincial income tax using the bracket schedules and the federal and provincial Basic Personal Amount credits only. Refundable provincial credits (low-income reductions, cost-of-living rebates, carbon rebates) reduce or offset tax owed but are not modelled in the base calculation. Reported figures show the underlying bracket-and-BPA tax.
How is the federal Basic Personal Amount phased down?: The federal BPA is $16,452 for 2026 at incomes up to $181,440 of net income. From $181,440 to $258,482, the BPA is reduced linearly to $14,829. Above $258,482, the reduced $14,829 BPA applies. The phase-down increases net federal tax by approximately $227 across the phase-down range. Nunavut provincial BPA does not phase down.
What about Quebec residents earning income from Nunavut?: Quebec residents file a separate provincial return with Revenu Québec and are subject to a 16.5% federal tax abatement reducing federal tax payable. Nunavut provincial tax does not apply to Quebec residents on Nunavut-source income unless the income is earned through a permanent establishment in Nunavut. Use the Quebec calculator for Quebec residents.