Yukon Provincial Budget Tax Updates 2024-2025

March 19, 2024


On March 2, 2024, Yukon’s government has presented its 2024-2025 budget. This comprehensive summary highlights the key changes that will influence the Yukon tax environment in the coming years.

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 on your taxable income, are as follows:

Taxable incomeRate
$55,867 or less6.40%
More than $55,867 but not more than $111,7339.00%
More than $111,733 but not more than $173,20510.90 %
More than $173,205 but not more than $500,00012.80%
More than $500,00015.00%

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

Taxable income above $500,000Rate
Interest/regular income48.00%
Capital gains24.00%
Eligible dividends28.92%
Non‑eligible dividends44.05%

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 Yukon in 2024 are as follows:

Provincial tax rateFederal and provincial combined tax rate
Small-business tax rate0.00%9.00%
General manufacturing and processing tax rate2.50%17.50%
General corporate tax rate12.00%27.00%

Other Tax Measures

Tobacco Tax Increase

Effective January 1, 2024, the rate of tax on tobacco per cigarette has increased from 32 cents to 35 cents in accordance with the Tobacco Tax Act and the fluctuations in the Whitehorse Consumer Price Index. It is anticipated that this rate will rise to 37 cents in 2025.

Tax on Vaping Products

The Yukon Government has declared its intent to participate in the federally coordinated vaping product taxation framework in 2024–25. This participation aims to discourage vaping among young individuals as well as reducing the consequences on the health care system.

The implementation of this new tax is anticipated to begin in early 2025, and tax revenues will be collected by the Canada Revenue Agency to be returned to the Yukon through a transfer.

For further information, visit https://yukon.ca/en/budget.