Northwest Territories Provincial Budget Tax Updates 2026-2027

February 9, 2026
4:15 pm

Overview

On February 5, 2026, Northwest Territories’ government presented its 2026-2027 budget. This comprehensive summary highlights the key changes that will influence Northwest Territories’ tax environment in the coming years.

Personal Income Tax Measures

There are no proposed changes to personal income tax rates for 2026.

The income tax rates for the 2026 taxation year, based on your taxable income, are as follows:

Taxable income	Rate
$53,003 or less	5.90%
Over $53,003 up to $106,009	8.60%
Over $106,009 up to $172,346	12.20%
Over $172,346	14.05%

The current personal combined income tax rates for top marginal tax rates in 2026 are outlined below:

Taxable income above $258,482	Rate
Interest/regular income	47.05%
Capital gains	23.53%
Eligible dividends	28.33%
Non‑eligible dividends	36.82%

Corporate Income Tax Measures

There are no proposed changes to corporate income tax rates or the $500,000 small-business limit for 2026.

The corporate income tax rates for Northwest Territories in 2026 are as follows:

	Provincial tax rate	Federal and provincial combined tax rate[1]
Small-business tax rate[2]	2.00%	11.00%
Manufacturing and processing tax rate	11.50%	26.50%
General corporate tax rate	11.50%	26.50%

Other Tax Measures

Property and Education Mill Rate Adjustment

In keeping with the existing indexing policy, property and education mill rates will increase by the rate of inflation. The Class 4 property tax mill rate will remain unchanged from the 2025–26 level to support the diamond mining sector.

Carbon Tax Increase

Effective April 1, 2026, the Northwest Territories’ carbon tax rate will increase by $15 to $110 per carbon-equivalent ton of greenhouse gas emissions.

Following federal changes announced in March 2025 that eliminated the consumer carbon price[3], the Government of Northwest Territories discontinued the consumer carbon tax on fuels effective April 1, 2025.[4] Diamond mines, which are the sole large emitters in the Northwest Territories, remain subject to the industrial carbon tax with a federally approved rebate system.

For further information, visit https://www.gov.nt.ca/en/newsroom/gnwt-releases-budget-2026-2027

[1] Federal corporate income tax rates on qualifying zero-emission technology manufacturing profits are temporarily reduced by 50%, lowering the general rate to 7.5% (from 15%) and the CCPC rate to 4.5% (from 9%), for taxation years from 2022 through 2031. These reduced rates will then be gradually phased out for taxation years beginning in 2032 through 2034.

[2] Applies to the first $500,000 of active taxable income of Canadian-Controlled Private Corporations (CCPCs).

[3] Removing the consumer carbon price, effective April 1, 2025, Canada.ca

[4] GNWT ending NWT Carbon Tax for most users on April 1, Gov.nt.ca

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This article was prepared by the individuals listed below. For further information on the above, we invite you to please reach out Danny Guérin of Andersen Inc.