Yukon Provincial Budget Tax Updates 2024-2025
Overview
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 income | Rate |
| $55,867 or less | 6.40% |
| More than $55,867 but not more than $111,733 | 9.00% |
| More than $111,733 but not more than $173,205 | 10.90 % |
| More than $173,205 but not more than $500,000 | 12.80% |
| More than $500,000 | 15.00% |
The current personal combined income tax rates for top marginal tax rate in 2024 are outlined below:
| Taxable income above $500,000 | Rate |
| Interest/regular income | 48.00% |
| Capital gains | 24.00% |
| Eligible dividends | 28.92% |
| Non‑eligible dividends | 44.05% |
Corporate Income Tax Measures
The corporate income tax rates for Yukon in 2024 are as follows:
| Provincial tax rate | Federal and provincial combined tax rate | |
| Small-business tax rate | 0.00% | 9.00% |
| General manufacturing and processing tax rate | 2.50% | 17.50% |
| General corporate tax rate | 12.00% | 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.
