Nunavut has the lowest personal income tax rates in Canada — full stop. Its four brackets run from just 4% to 11.5%, and for 2026 the thresholds are indexed by the full federal factor of 2%: the 4% rate applies to income up to $55,801, then 7% to $111,602, 9% to $181,439, and 11.5% above that.

The comparison with the provinces is striking. Nunavut’s top territorial rate of 11.5% is lower than the bottom rate of six provinces — a Nova Scotian pays a higher rate on their first taxable dollar (8.79%… and 14.95% past $31,000) than a Nunavummiuq pays on their first $111,602 of income. Nunavut also pairs its low rates with a territorial basic personal amount of $19,274, one of the most generous in the country, plus the territory’s Cost of Living Tax Credit designed to offset northern prices.

At the top end, the combined federal-territorial marginal rate maxes out at 44.5% on income above $258,482 — the lowest top marginal rate anywhere in Canada, a full 3.5 points below Alberta and nearly 10 points below Nova Scotia. Of course, income tax is only part of the northern financial picture: living costs in Nunavut are the highest in the country, which is precisely why the tax system is built this way, and why federal northern residents deductions add further relief on top.

With the federal bottom rate at 14% for all of 2026, the entry combined rate is just 18% — the lowest in the nation. See your complete 2026 breakdown with our Nunavut Tax Calculator.

2026 Federal and Nunavut Tax Brackets and Tax Rates

2025 Federal and Nunavut Tax Brackets and Tax Rates

Note: Nunavut indexes brackets and credits using the federal indexation factor — 2% for 2026.

Note: Residents may also claim the federal northern residents deductions and Nunavut’s Cost of Living Tax Credit.

Note: Top combined federal + Nunavut marginal rate: 44.5% — the lowest in Canada.

Sources: CRA — 2026 Tax Rates and Income Brackets · KPMG Personal Tax Rates 2026

Last Updated: July 17th, 2026