Nunavut Income Tax Calculator (Combined) Canada

What the Nunavut income tax calculator does

The calculator works out the federal and territorial tax for a Nunavut resident separately and adds them. It also reports the average rate across all your income and the combined marginal rate on the next dollar, two numbers people often mix up.

Enter income annually or per pay period, subtract RRSP contributions and other deductions, add a realized capital gain, and claim any additional non-refundable credit amounts. The result updates in your browser and nothing you enter is sent anywhere.

How territorial tax works alongside federal tax

The territories sit in Canada’s two-level income tax system on the same terms as the provinces. Ottawa’s schedule applies everywhere, Nunavut applies its own to the same taxable income, and the two bills are added. Neither government lowers its rate because of the other.

Nunavut’s 2026 schedule has four bands:

• 4% up to $55,801
• 7% to $111,602
• 9% to $181,439
• 11.5% above that

Both the lowest and the top rate are the lowest in the country, so the territorial share stays modest across a very wide income range.

The territorial basic personal amount is $19,659. Credited at 4% it is worth about $786, so its main effect is at the bottom of the income range, where it takes a band of income out of territorial tax altogether. The calculator shows the credit as a separate output.

A worked example

On $95,000 of taxable income the federal tax is about $13,368 and the Nunavut tax about $4,190, a combined $17,557 and an average rate of about 18.5%. The marginal rate is 27.5%: 20.5% federal plus 7% territorial.

Brackets and the marginal rate

Each band of income is taxed at its own rate, and only the portion inside a band pays that rate, so moving into a higher bracket never reduces your after-tax income. The marginal rate is the rate on the top slice and is the one to use when deciding about extra shifts, an RRSP contribution this year or next, or how much of a bonus you keep. The average rate, total tax divided by total income, is always lower and describes your overall burden. The calculator shows both, with the federal and territorial parts of the marginal rate.

Deductions and credits

Deductions come off income before either bracket table applies, so they save tax at your combined marginal rate. Credits are calculated at each government’s lowest rate and subtracted from tax already worked out, so they are worth the same to everyone. Above the bottom bracket, a deduction is worth more per dollar than a credit of the same size.

An RRSP contribution reduces taxable income for both federal and territorial purposes and saves roughly the contribution times the combined marginal rate. Because the territorial rates are low, that rate is lower in Nunavut than in most of the country, so a contribution saves slightly less than on the same salary in a southern province.

The other deductions field carries union and professional dues, childcare expenses, moving expenses, employment expenses certified by an employer and the northern residents deduction. Every Nunavut community is in a prescribed northern zone, so residents who lived there for the required period can claim the residency deduction, which can be large. Work it out separately and enter the result here so it reduces the base before the brackets apply.

Capital gains

The calculator applies the current inclusion rate to the gain you enter and adds only the included part to taxable income. The full gain counts as income when the average rate is worked out, so a year with a large gain shows a lower average rate than the same amount of salary would.

What is left out

This is a combined income tax estimate, not a full return. It does not calculate CPP or EI. It does not apply dividend gross-ups and credits, the Nunavut cost of living tax credit, spousal or dependant credits, pension income splitting or the alternative minimum tax. It assumes you lived in Nunavut on the last day of the year, the test that decides which jurisdiction taxes you.

For take-home pay in any jurisdiction, use the Canadian income tax calculator. To compare Nunavut with a province you might move to, use the provincial tax calculator.

Using the result

Read the combined figure as a planning estimate: roughly what you will owe, what a northern posting does to your tax bill, and how much of your next raise you keep. A Nunavut return in particular carries deductions and credits this tool does not attempt.

This calculator provides an estimate for information only and is not tax advice.

About This Tool: Nunavut Income Tax

Nunavut income tax: use this tool to get an instant, accurate estimate. The figures follow official CRA guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.