Nunavut Provincial Budget Tax Updates 2024-2025

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Overview

On February 26, 2024, Nunavut’s government has presented its 2024-2025 budget. This comprehensive summary highlights the key changes that will influence Nunavut’s tax environment in the coming years.

The budget contains no new tax or any changes to tax legislation.

Personal Income Tax Measures:

There are no proposed changes to personal income tax rates for 2024.

The income tax rates for the 2024 taxation year, based your taxable income, are as follows:

Taxable income	Rate
$53,268 or less	4.00%
More than $53,268 but not more than $106,537	7.00%
More than $106,537 but not more than $173,205	9.00%
More than $173,205	11.50%

The current personal combined income tax rates for top marginal tax rate in 2024 are outlined below:

Taxable income above $246,752	Rate
Interest/regular income	44.50%
Capital gains	22.25%
Eligible dividends	33.08%
Non‑eligible dividends	37.79%

Corporate Income Tax measures:

There are no proposed changes to corporate income tax rates or the $500,000 small-business limit for 2024.

The corporate income tax rates for Nunavut in 2024 are as follows:

	Rate	Federal and provincial tax rate
Small-business tax rate	3.00%	12.00%
General corporate tax rate	12.00%	27.00%

Other Tax Measures

Tax on Vaping Products

Starting July 1, 2024, the CRA will initiate the collection of Nunavut tax on vaping products sold within the territory. The rates are established at $1 per 2 ml of vaping product, with an additional $1 for every 10 ml beyond the initial 10 ml. These taxes will be imposed alongside the existing federal rates, which are currently identical.

Liquor Tax

Bill 4 or the Liquor Tax Act, which establishes a tax on all alcohol consumed or imported into the territory, was introduced into the Assembly in May 2022. The tax underwent three readings and was enacted into law in spring 2023. However, it has not been enforced yet as the government is still finalizing rates and addressing other administrative matters.

More information

For further information, visit https://www.gov.nu.ca/en/department-finance/budget-2023-24

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