Provincial tax
Nunavut Business Tax Rates for 2026
Nunavut business tax rates for 2026: 3% on small business income, 12% general, GST only, the 2% payroll tax and the lowest personal rates in Canada.
Sources checked October 20264 min read
Corporate tax rates in Nunavut
Nunavut's small business rate is 3% on the first $500,000, the highest of the three territories, and its general rate is 12%. Combined with federal tax that is 12% and 27%.
| Rate | Nunavut | With federal tax |
|---|---|---|
| Small business rate | 3% | 12% |
| General rate | 12% | 27% |
| Income the small business rate covers | $500,000 | Same federal limit |
Key points
- 12% combined on the first $500,000 of active business income
- 27% combined general corporate rate
- 5% GST and no territorial sales tax
- Lowest personal income tax rates in Canada
Sales tax in Nunavut
There is no territorial sales tax. Businesses charge 5% GST and file with the CRA.
Nunavut income tax brackets for 2026
Nunavut has the lowest personal rates in Canada, from 4% on the first $55,801 to 11.5% above $181,439.
| Taxable income from | Up to | Rate |
|---|---|---|
| $0 | $55,801 | 4% |
| $55,801.01 | $111,602 | 7% |
| $111,602.01 | $181,439 | 9% |
| $181,439.01 | No upper limit | 11.5% |
Payroll costs in Nunavut
Employers deduct a 2% payroll tax from the pay of every employee who normally works in Nunavut, meaning more than half of their working days for that employer in the year, and remit it to the Government of Nunavut.
Someone who normally works elsewhere and earns $5,000 or less in Nunavut in a year is not taxed; above that, the whole amount earned in Nunavut is. A new employer has 21 days from its first payment to an employee to register. Workplace insurance runs through the WSCC.
Working in Nunavut from elsewhere
Many Nunavut payrolls belong to employers based in the south with crews on rotation. The payroll tax follows the work, not the head office, so the registration and the 21 day deadline apply to them too.
Nunavut questions, answered
What is the small business tax rate in Nunavut?
12% combined, 3% territorial and 9% federal, on the first $500,000.
Does an employer from another province pay Nunavut payroll tax?
Yes, for employees who normally work in Nunavut, and for anyone else who earns more than $5,000 there in a year.
Is there sales tax in Nunavut besides GST?
No.
More for Nunavut 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.