Understanding Nunavut’s income tax system is essential for effective financial planning. Nunavut follows a progressive tax structure, meaning different portions of income are taxed at increasing rates. The territory adjusts its tax brackets and basic personal amount (BPA) annually using the federal indexation factor, ensuring that tax thresholds keep pace with inflation.

For 2025, the Nunavut BPA has increased to $19,274, while tax bracket thresholds have been adjusted by 2.7% in line with federal indexation. The federal BPA ranges from $14,538 to $16,129, depending on income level. Nunavut’s territorial tax rates start at 4.00% for lower incomes and increase to 11.50% for higher earners.

When combined with federal tax rates, Nunavut’s marginal tax rates can reach 44.50% for the highest income levels. Understanding these rates helps taxpayers estimate their tax liability, maximize deductions, and optimize their financial planning. Use our Nunavut Tax Calculator to quickly and accurately estimate your taxes based on the latest federal and territorial rates.

2026 Federal and Nunavut Tax Brackets and Tax Rates

2025 Federal and Nunavut Tax Brackets and Tax Rates