Provincial tax
Yukon Business Tax Rates for 2026
Yukon business tax rates for 2026: no territorial tax on small business income, a 12% general rate, GST only and the territorial income brackets.
Sources checked October 20264 min read
Corporate tax rates in Yukon
Yukon charges 0% on the first $500,000 of small business income, so a Canadian controlled private corporation there pays only the federal 9%. Other income pays 12% to Yukon, 27% in total.
Yukon and Manitoba are the two places in Canada that charge nothing at all on small business income below the limit.
| Rate | Yukon | With federal tax |
|---|---|---|
| Small business rate | 0% | 9% |
| General rate | 12% | 27% |
| Income the small business rate covers | $500,000 | Same federal limit |
Key points
- 9% combined on the first $500,000 of active business income
- 27% combined general corporate rate
- 5% GST and no territorial sales tax
- No territorial sales tax or payroll tax
Sales tax in Yukon
There is no territorial sales tax. Businesses charge 5% GST, and when they ship to a customer in a harmonized province they charge that province's HST instead, still on their own GST/HST return.
Yukon income tax brackets for 2026
Yukon's lower bracket thresholds match the federal ones, then a 12.8% band runs to $500,000 and 15% applies above it.
| Taxable income from | Up to | Rate |
|---|---|---|
| $0 | $58,523 | 6.4% |
| $58,523.01 | $117,045 | 9% |
| $117,045.01 | $181,440 | 10.9% |
| $181,440.01 | $500,000 | 12.8% |
| $500,000.01 | No upper limit | 15% |
Payroll costs in Yukon
Yukon has no payroll tax. Workplace insurance runs through the Yukon Workers' Safety and Compensation Board.
One tax agency in practice
Corporate tax, GST and payroll deductions all run through the CRA. For a small Yukon company the CRA is effectively the only tax agency it deals with, which makes Yukon one of the simpler places in the country to stay compliant.
Yukon questions, answered
What is the small business tax rate in Yukon?
9% combined, all of it federal, on the first $500,000 of active business income.
Is there sales tax in Yukon besides GST?
No. Yukon businesses charge 5% GST only, unless the place of supply is a harmonized province.
Does Yukon have a payroll tax?
No.
More for Yukon 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.