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Territories -> Yukon

Yukon Income Tax

Yukon/Federal tax brackets and marginal tax rates - 2015 YT tax structure revised by Budget

Canadian Tax Calculator

Yukon Non-refundable Personal Tax Credits

For information on the amounts for most non- refundable tax credits available to Yukon residents, see the non-refundable personal tax credits tables.

Yukon Dividend Tax Credit

Yukon Enhanced Dividend Tax Credit for Eligible Dividends

YT Income Tax Act s. 6(39)

Due to the changes in the federal gross-up % starting in 2010, amendments were made to the Yukon Income Tax Act, revising the calculation of the dividend tax credit starting in 2011.  The dividend tax credit changes automatically now if there is a change in the federal or Yukon general corporate income tax rate, highest personal income tax (PIT) rate, or gross-up percentage.  The following table shows the resulting rates.  The 2015 rate changed slightly due to the increase in the highest PIT rate.

Year 2009 2010 2011

2012 to
2014

2015 &
later

Gross-up % 45% 44% 41% 38% 38%
enhanced dividend tax credit as a % of
grossed-up dividends 11% 10.83% 15.08% 15.08% 15.00%
actual dividends 15.95% 15.60% 21.26% 20.81% 20.70%

The above rates are based on the federal and Yukon corporate tax rates for large corporations, as well as the gross-up percentage in effect on January 1 of the tax year.  The 2012 rates are calculated using the expected federal corporate tax rate of 15% for 2012.

The Yukon tables of marginal tax rates have been revised to reflect the new dividend tax credit rates for both eligible and non-eligible dividends.

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.

Yukon Dividend Tax Credit for Non-eligible Dividends

YT Income Tax Act s. 6(39)

The Federal 2016 Budget announced that the gross-up rate for non-eligible dividends (also know as regular dividends, or small business dividends) would be not be revised further after 2016, and the Federal tax credit rate for these dividends would remain at 2016 rates.

The Yukon Income Tax Act was revised in the fall of 2010, for tax years 2011 and later.  The dividend tax credit for non-eligible, or small business dividends changes automatically now if there is a change in the federal or Yukon corporate income tax rate, highest personal income tax rate, or gross-up percentage.

The Yukon 2015 Budget Bill 86 made a change to the calculation of the non-eligible dividend tax credit calculation, in relation to the creation of a new tax bracket with a threshold equal to the small business limit, with a tax rate equal to the general corporate tax rate, which is paid by small businesses on taxable income above the small business limit.

The rates for non-eligible, or small business dividends, are reflected in the following table.

     Yukon Dividend Tax Credit Rate for Non-Eligible Dividends

Year Gross-up
Rate
%of Federal
Gross-up
% of Grossed-up
Dividend
% of Actual
Dividend
2016+ 17% 21.63% 3.14% 3.68%
2015 18% 20.81% 3.17% 3.75%
2014 18% 26.42% 4.03% 4.76%
2011-2013 25% 22.55% 4.51% 5.64%
2006-2010 25% 22.24% 4.45% 5.56%

Yukon Low-income Family Tax Credit

The Yukon 2015 Budget repealed this tax credit, effective for 2015 and later taxation years.  The Yukon Child Tax Benefit is increased for the 2015 and later taxation years.  See the 2015 Yukon Budget Highlights (pdf).

bulletwas available for low income individuals or families
bulletif married or living common-law, must be claimed by spouse with higher net income
bulletmaximum credit was 80% of Yukon tax
bulletincome for the calculation of this credit did not include the federal Universal Child Care Benefit of $100 per month

See Canada Revenue Agency ( CRA) form YT428 from the  YT General Income Tax and Benefit Package page for detailed calculation.

YT Child fitness tax credit

YT Children's arts tax credit

Yukon Government Links:

Budget website

Legislation

Legislative Assembly

Income Tax

Health Care in the Yukon

Health and Social Services

Health Care Insurance Plan - includes registration information

Pharmacare

Canada Revenue Agency (CRA) Links

YT Personal income tax and benefit package

YT Corporation income tax

 

Government benefits, programs and services

Revised: December 20, 2016

 

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