Territories -> Yukon
Yukon Income Tax
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 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 is revised 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. The rate for 2018 and later years is reduced because the Yukon 2017 Budget reduced the general corporate income tax rate from 15% to 12%.
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 include the marginal tax 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.
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 2017 Budget set the tax rate for the highest tax threshold at 15% instead of leaving it dependent on the general corporate tax rate. The 2017 Budget also reduced the small business tax rate to 2% from 3%, effective July 1, 2017. This changes the 2018 dividend tax credit rate.
The rates for non-eligible, or small business dividends, are reflected in the following table.
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).
See Canada Revenue Agency ( CRA) form YT428 from the YT General Income Tax and Benefit Package page for detailed calculation.
Yukon Government Links:
Health Care in the Yukon
Canada Revenue Agency (CRA) Links
- on Yukon website. See also Bill 3, Budget Measures Implementation Act, 2017 (pdf).
- General corporate tax rate reduced from 15% to 12%, effective July 1, 2017.
- The manufacturing and processing profits deduction rate is reduced from 12.5% to 9.5% as of July 1, 2017.
- The small business manufacturing and processing profits deduction rate is reduced from 1.5% to 0.5% as of July 1, 2017.
- The highest personal income tax rate is set at 15% instead of being linked to the corporate income tax rate.
- Small business corporate tax reduced from 3% to 2%, effective July 1, 2017.
- Tax rate on cigarettes and loose tobacco will increase from 21 cents per cigarette or gram to 25 cents on July 1, 2017, rising to 30 cents on April 1, 2018. The tax will increase by the consumer price index each January 1 starting in 2019.
Revised: May 26, 2017
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