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Northwest Territories Tax

Northwest Territories/Federal tax brackets and marginal tax rates

Tax brackets and applicable Northwest Territories rates, plus combined federal/NT marginal tax rates for eligible and non-eligible Canadian dividends, capital gains and other income (interest, foreign dividends, employment, self-employment, etc).

Detailed Canadian Income Tax & RRSP Savings Calculator

Detailed tax calculator which includes most deductions and tax credits, can be used to check your tax return or to do some tax planning for the next tax year.

Basic Canadian Tax Calculator

The Basic Tax Calculator works for all provinces and territories, and requires very little input. You input the amount of income from Canadian eligible and non-eligible dividends, capital gains, and employment/other income. This will produce a table of taxes payable for the current and past 5 years, for all provinces and territories, as well as your marginal tax rate for each type of income. Also able to compare 2 different income scenarios.

Tables of Non-Refundable Personal Tax Credits

NT Dividend Tax Credit

NT Dividend Tax Credit for Eligible Dividends

NT Income Tax Act s. 2.32(b)

Starting with the 2011 taxation year, the NT eligible dividend tax credit for 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 eligible dividend tax credit is as follows:

Year	2009	2010	2011	2012 & later
Gross-up %	45%	44%	41%	38%
eligible 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 eligible dividends. See the Eligible 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
	calculated on form NT479 on the tax return
	calculated by the Detailed Canadian Income Tax & RRSP Savings Calculator

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
	calculated on form NT479 on the tax return
	calculated by the Detailed Canadian Income Tax & RRSP Savings Calculator

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.

NT Cost of Living Offset

	paid quarterly with the GST Credit
	helps to offset the cost of NT carbon tax
	See Northwest Territories cost of living offset on the Northwest Territories website

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

Northwest Territories COVID-19 Information and Support

COVID-19 Resources - federal and provincial/territorial

Government benefits, programs and services

Northwest Territories Budgets

Northwest Territories 2023 Budget

See Budget 2023 on the NWT website.

	no new taxes, but property mill rates and some fees will increase by inflation.
	carbon tax rate increases by $15 per tonne annually starting April 1, 2023, until it reaches $170 per tonne on April 1, 2023. Aviation fuel and diesel fuel used to generate electricity for community distribution remains exempt from the carbon tax.
	proposes increased income support benefits and continuation of the Senior Citizens and Disabled Persons Property Tax Relief Program.
	proposals to offset the carbon tax burden include increased Cost of Living Offset (COLO) amounts. If the carbon tax rate is not increased to $65 per tonne on April 1, 2023, the federal system will apply and carbon tax revenues generated in the territory will be distributed through federal programs.

Northwest Territories 2022 Budget - February 22, 2022

See Budget 2022 on the NWT website.

no new taxes, but some tax rates increase:

property mill rates and some fees will increase by inflation.

carbon tax increases to $50 per tonne July 1, 2022 so that the carbon tax rate on gasoline will be 11.8 centres per litre.

Northwest Territories 2021 Budget - February 4, 2021

See Budget 2021 on the NWT website. Tax measures proposed:

	small business corporate tax rate reduced to 2% from 4% effective January 1, 2021
	property tax rates and some fees will be increased to match inflation
	carbon tax rates will increase to $40 per tonne on July 1, 2021
	carbon tax rebates will continue, and the Cost of Living Offset will increase on July 1 to $208 per adult and $240 per child

Bill 16, An Act to Amend the Income Tax Act, which received Royal Assent on March 31, 2021, reduces the Small business corporate income tax rate to 2% effective Jan 1, 2021.

Northwest Territories 2020 Budget - February 25, 2020

See 2020-2021 Budget Address and Papers on the NWT website. No new taxes were introduced. Details of carbon tax rate increases are announced in the Tax Measures section of the Budget Address and Papers (pdf).

Northwest Territories 2019 Budget - February 6, 2019

The only tax change announced in the NT 2019 Budget on February 6, 2019 relates to the carbon tax that will be in effect starting July 1, 2019 . See 2019-2020 Budget Highlights on the NT website.

Northwest Territories 2018 Budget - February 8, 2018

There were no tax changes announced in the NT 2018 Budget.

Northwest Territories 2017 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):