Nunavut Provincial Budget Tax Updates 2025-2026
Overview
On February 24, 2025, Nunavut’s government 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 2025.
The income tax rates for the 2025 taxation year, based on your taxable income, are as follows:
| Taxable income | Rate |
| $54,707 or less | 4.00% |
| More than $54,707 but not more than $109,413 | 7.00% |
| More than $109,413 but not more than $177,881 | 9.00% |
| More than $177,881 | 11.50% |
The current top marginal personal combined income tax rates in 2025 are outlined below:
| Taxable income above $253,414 | 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 2025.
The corporate income tax rates for Nunavut in 2025 are as follows:
| Rate | Federal and provincial tax rate | |
| Small-business tax rate[1] | 3.00% | 12.00% |
| Manufacturing and processing tax rate | 12.00% | 27.00% |
| General corporate tax rate | 12.00% | 27.00% |
Other Tax Measures
Tax on Vaping Products
On July 1, 2024, the CRA started the collection of Nunavut tax on vaping products sold within the territory. The rates are established at $1.12 per 2 ml of vaping product, with an additional $1.12 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
A liquor tax on all alcohol consumed or imported into the territory was introduced into the Assembly in May 2022. The tax received three readings and became law in Spring 2023. However, enforcement has not yet begun, as the government is still finalizing the rates and resolving administrative matters.
Property Tax
For the 2025 tax year, property tax mill rates in the General Taxation Area (excluding Iqaluit) will increase by 10%, with Tax Notices sent to property owners by early fall. In 2024, mill rates for residential and commercial properties were reduced by 10% to help offset the impact of the 2024 General Assessment, a territory-wide property revaluation conducted every 10 years.
Volunteer Firefighter Tax Credit
In October 2024, an amendment was introduced to extend eligibility for the volunteer firefighter tax credit to search and rescue volunteers. The amendment received assent in November 2024.
Fuel Tax
In October 2024, an updated Fuel Tax Act passed First and Second Readings. The Assembly will continue reviewing the proposed legislation in the upcoming Winter Session.
More Information
For further information, visit https://www.gov.nu.ca/en/department-finance/budget-2025-26
[1] Applies to the first $500,000 of active taxable income of Canadian-Controlled Private Corporations (CCPCs).
