Nunavut Tax Brackets 2026: Rates and Marginal Tax Rates

Your marginal tax rate in Nunavut is the tax you pay on the next dollar of taxable income you earn. It is not the rate on all of your income. Canada uses a progressive system, so each bracket applies only to the slice of income that falls inside it. This guide covers the 2026 tax year (the return you file in spring 2027) and combines federal and Nunavut tax. Figures were checked on November 8, 2026.

Quick Answer

For 2026, Nunavut charges territorial income tax at 4 rates from 4% to 11.5%. Add federal tax (14% to 33%) and the highest combined marginal rate on ordinary income is 44.5%, reached above $258,482 of taxable income. Most people pay much less: about 16.8% of taxable income at $80,000, before CPP, EI and credits other than the basic personal amount.

Nunavut Tax Brackets and Rates for 2026

These are the Nunavut territorial brackets for 2026. They were indexed by 2.0% for 2026, using the same formula as the federal brackets:

Federal Tax Brackets for 2026

Residents of every province and territory also pay federal tax. The lowest federal rate is 14% for 2026 (it was 15% before July 1, 2025). For the full federal picture, including what is coming for 2027, see our federal tax brackets guide.

How Nunavut Income Tax Is Calculated

Your tax bill is built in layers. Here is the order, in plain terms:

1. Start with taxable income: your total income minus deductions such as RRSP contributions, union dues and child care expenses. Brackets apply to this number, not to your gross pay.
2. Apply each federal rate to the slice of income inside its bracket and add the results. Then subtract the federal basic personal amount credit ($16,452 × 14% = $2,303).
3. Do the same with the Nunavut rates, then subtract the Nunavut basic personal amount credit ($19,659 × 4% = $786).
4. Subtract other credits you qualify for. CPP and EI contributions are separate payroll deductions, so they are not part of this calculation.

Example: $80,000 of Taxable Income in Nunavut

• Federal: 14% × $58,523 = $8,193, plus 20.5% × $21,477 = $4,403. That is $12,596, minus the $2,303 credit, so $10,293.
• Nunavut: 4% × $55,801 = $2,232, plus 7% × $24,199 = $1,694. That is $3,926, minus the $786 credit, so $3,140.
• Total: about $13,430, or 16.8% of $80,000. Your marginal rate on the next dollar is 27.5%, higher than your average rate.

Combined Federal and Nunavut Marginal Tax Rates for 2026

This table adds the federal and Nunavut rates for each slice of taxable income, for four kinds of income. The highest combined rate on ordinary income is 44.5%.

The capital gains column shows the tax on the full gain, because only 50% of a gain is taxable. The dividend columns show the tax on the dividend you actually receive, not the grossed-up amount. A negative rate means the dividend tax credit is larger than the tax on that slice of income. Between $181,440 and $258,482 the federal basic personal amount shrinks from $16,452 to $14,829, which adds about 0.29 percentage points to the federal marginal rate; the table includes it. All rates are rounded and approximate.

How Much Tax Do You Pay at Different Incomes?

These examples use the 2026 rates above. They count only the basic personal amount credit and exclude CPP and EI contributions and other credits, so your real bill will differ.

Enter your own numbers in the Canadian income tax calculator, or use the self-employed tax calculator if you work for yourself. Compare with Ontario tax brackets.

Marginal Rate vs. Average Rate: Why It Matters

Your average rate is total tax divided by income. Your marginal rate is the rate on the next dollar. At $80,000 of taxable income in Nunavut the average rate is 16.8%, but the next dollar is taxed at 27.5%. That gap is what makes deductions valuable: a $1,000 RRSP contribution deducted at $80,000 saves about $275 in tax, and at $130,000 it saves about $350. Moving into a higher bracket never makes you take home less overall, because only the income above the threshold is taxed at the higher rate.

Understanding the Different Income Types

• Other income includes employment income, self-employment income, interest, rental income and most pensions.
• Capital gains come from selling investments or property that gained value. Half of the gain is taxable.
• Eligible dividends are usually paid by public corporations and some private ones. They receive a larger dividend tax credit.
• Non-eligible dividends usually come from small private corporations. They receive a smaller credit.

Nunavut Basic Personal Amount for 2026

Everyone can claim the basic personal amount, which is income you can earn without paying tax on it. For 2026 the Nunavut basic personal amount is $19,659, claimed at the lowest territorial rate (4%), a credit of about $786. The federal amount is $16,452 for most people, a credit of about $2,303 at 14%. See our basic personal amount guide.

Good to Know About Nunavut

• Nunavut has four territorial brackets, from 4% to 11.5%, the lowest rates of any province or territory.
• The basic personal amount is a fixed $19,659, higher than the federal amount, and is not reduced at higher incomes.
• Nunavut has no territorial sales tax, so only the 5% GST applies to most purchases.
• Residents of prescribed northern zones may be able to claim the federal northern residents deductions, which reduce taxable income. They are not included in the tables. See the CRA's Form T2222.

What These Tables Do Not Include

The rates above are for taxable income only. They leave out CPP and EI contributions, other credits and deductions, clawbacks of benefits such as the Canada Child Benefit, and territorial credits not mentioned above. Your own marginal rate can differ. Use these tables as a guide, not as a tax calculation.

Nunavut Tax Brackets 2026: Frequently Asked Questions

Sources

• KPMG: Federal and provincial/territorial income tax rates and brackets for 2026
• CRA: Payroll Deductions Formulas, July 1, 2026 edition (territorial rates and basic personal amounts)
• TaxTips.ca: Nunavut 2026 tax rates (combined marginal rates by income type)

General information only, not tax, legal or financial advice. Figures are for the 2026 tax year, rounded where noted, and were last checked on November 8, 2026.

Related guides

• Yukon tax brackets and marginal rates 2026
• Northwest Territories tax brackets and marginal rates 2026
• British Columbia tax brackets and marginal rates 2026
• Federal tax brackets in Canada
• Canadian income tax calculator
• Self-employed tax calculator

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