Provincial tax
Northwest Territories Business Tax Rates for 2026
Northwest Territories business tax rates for 2026: 2% and 11.5% corporate rates, GST only, the 2% payroll tax employers withhold, and income brackets.
Sources checked October 20264 min read
Key points
- 11% combined on the first $500,000 of active business income
- 26.5% combined general corporate rate
- 5% GST and no territorial sales tax
- 2% payroll tax withheld from employees
Corporate tax rates in Northwest Territories
The Northwest Territories taxes small business income at 2% up to $500,000 and other income at 11.5%. With federal tax that is 11% and 26.5%, the same general rate as Ontario.
| Rate | Northwest Territories | With federal tax |
|---|---|---|
| Small business rate | 2% | 11% |
| General rate | 11.5% | 26.5% |
| Income the small business rate covers | $500,000 | Same federal limit |
Sales tax in Northwest Territories
There is no territorial sales tax. Businesses charge 5% GST and file with the CRA.
Northwest Territories income tax brackets for 2026
Four brackets run from 5.9% to 14.05% on income above $172,346.
| Taxable income from | Up to | Rate |
|---|---|---|
| $0 | $53,003 | 5.9% |
| $53,003.01 | $106,009 | 8.6% |
| $106,009.01 | $172,346 | 12.2% |
| $172,346.01 | No upper limit | 14.05% |
Payroll costs in Northwest Territories
People working in the territory pay a 2% payroll tax on their employment income, and employers withhold it from each pay and remit it to the Government of the Northwest Territories. It is a separate account from CRA payroll deductions, with an annual return due February 28.
It applies to people who normally work in the territory, wherever they live, and it does not appear on the T4. Workplace insurance runs through the WSCC.
A second payroll account
Corporate tax and GST run through the CRA as they do in the south. The payroll tax is the territorial addition, and it catches employers based elsewhere who send staff to work in the territory for most of a year.
Northwest Territories questions, answered
What is the small business tax rate in the Northwest Territories?
11% combined, 2% territorial and 9% federal, on the first $500,000.
Who pays the NWT payroll tax?
The employee, at 2% of employment income earned in the territory. The employer withholds it and remits it to the territorial government.
Is there sales tax in the Northwest Territories besides GST?
No.
More for Northwest Territories businesses
Official sources
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Important. This article provides general educational information, not legal or tax advice for a specific business. Rules, administrative policies, rates and deadlines can change. Confirm your facts and current obligations with the responsible government agency and a qualified adviser.