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Northwest Territories

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Territories -> Northwest Territories

Northwest Territories Tax

Northwest Territories/Federal tax brackets and marginal tax rates

Canadian Tax Calculator

NT Dividend Tax Credit

NT Enhanced Dividend Tax Credit for Eligible Dividends

NT Income Tax Act s. 2.32(b)

Starting with the 2011 taxation year, the NT enhanced dividend tax credit for eligible dividends is 11.5% of the taxable dividend amount.  Previously, the dividend tax credit was 6.67/18ths of the Federal gross-up amount.

The NT enhanced dividend tax credit is as follows:

Year 2009 2010 2011

2012 &
later

Gross-up % 45% 44% 41% 38%
enhanced dividend tax credit as a % of
grossed-up dividends 11.50% 11.32% 11.50% 11.50%
actual dividends 16.68% 16.30% 16.22% 15.87%

The Federal 2008 Budget reduced the gross-up rate and the dividend tax credit rate for dividends eligible for the enhanced dividend tax credit.  See the Enhanced Dividend Tax Credit article for details.

NT Dividend Tax Credit for Non-eligible Dividends

NT Income Tax Act s. 2.32(a)

The Northwest Territories dividend tax credit rate for non-eligible dividends (also know as regular dividends, or small business dividends) is defined as 6% of the grossed-up (taxable) dividend.

The Federal 2017 Fall Economic Statement announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be reduced to 16% for 2018, and to 15% for 2019 and later years.

The current and past Northwest Territories rates for non-eligible dividends are shown in the following table.  The 2018 and later rates will be in effect unless legislative changes are made by NT.

     NT Dividend Tax Credit Rate for Non-Eligible Dividends

Year Gross-up
Rate
%of Federal
Gross-up
% of Grossed-up
Dividend
% of Actual
Dividend
2019+ 15% 46.00% 6% 6.90%
2018 16% 43.50% 6% 6.96%
2016/2017 17% 41.29% 6% 7.02%
2014/2015 18% 39.33% 6% 7.08%
2013 25% 30.00% 6% 7.5%

See the Northwest Territories table of marginal tax rates for the marginal tax rates for eligible and non-eligible dividends and other income.

NT refundable tax credits

These are refundable to the taxpayer even if no income tax was paid.

Cost of living tax credit

amount received depends on adjusted net income

not just for low income individuals

Cost of living supplement

for taxpayers 18 years of age & older

supplements for taxpayer & spouse

less cost of living tax credit for taxpayer & spouse

can be claimed by either spouse

See  Canada Revenue Agency (CRA) forms NT479 and the Territorial Worksheet from the  Northwest Territories General Income Tax and Benefit Package page for detailed calculations.

Tax Tip:  File a tax return even if you have no income, to get the refundable tax credits.

NT Budget

There were no new taxes announced in the NT 2017 Budget on February 1, 2017, but there were increases announced to tobacco taxes.  Also, the following income tax changes were made, as indicated by Bill 17 (pdf):

bulletthe education tax credit is retained, although it was cancelled by the Federal government
bulletthe Overseas Employment Tax Credit was eliminated

The 2017 Budget provides an additional $750,000 in support for the NT Child Benefit.

For more information see the Northwest Territories government Budget information.

NT Government Links

Department of Finance

Taxation, including:

Income Tax Act and Regulations, both pdf

Personal Income Tax

Corporate Income Tax

Budgets

Legislative Assembly

Health Care in Northwest Territories

Health and Social Services

Health Care Plan

Extended Health Benefits - Seniors' Program

Canada Revenue Agency (CRA) Links

NT Personal income tax and benefit package

NT Corporation income tax

 

Government benefits, programs and services.

Revised: October 24, 2017

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