Home / Take-Home Pay / Nunavut
Enter your gross annual salary to see your estimated net take-home pay after federal income tax, Nunavut territorial tax, CPP and CPP2 contributions, and EI premiums. All calculations use 2026 rates published by the CRA and the Nunavut Department of Finance.
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Nunavut has four territorial tax brackets at 4%, 7%, 9%, and 11.5%, the lightest income tax schedule of any Canadian province or territory. The 4% first-bracket rate is the lowest starting rate in the country. Combined with a basic personal amount (BPA) of $19,659, the highest among the three territories and among the highest in Canada, Nunavut residents have the smallest effective territorial tax burden at any income level.
Nunavut's territorial government funds public services primarily through federal Territorial Formula Financing transfers, not own-source tax revenue. The territory's small and geographically dispersed population makes high tax revenue structurally impractical. Setting income tax at low rates serves two policy purposes: it reduces the financial burden on a population with above-average living costs, and it helps attract and retain skilled workers who might otherwise choose higher-income provinces.
This is a structural fiscal arrangement, not a temporary incentive.
Nunavut's $19,659 BPA shelters roughly a third of a $60,000 gross income from territorial tax. The remaining taxable income falls almost entirely in the 4% first bracket, which runs to $53,268. Only income above $53,268 moves into the 7% second bracket.
At $60,000 gross, territorial tax is $1,739.61 and net take-home is $47,519.67. The effective territorial tax rate at this income is the lowest of any Canadian jurisdiction by a meaningful margin.
| Scenario | Prov. Tax | Federal Tax | Net Pay | Eff. Rate |
|---|---|---|---|---|
| $60K (Nunavut) | $1,740 | $6,193 | $47,520 | 20.8% |
| $60K (NWT) | $2,655 | $6,193 | $46,604 | 22.3% |
| $60K (Yukon) | $2,825 | $6,193 | $46,434 | 22.6% |
| $60K (Alberta, compare) | $2,978 | $6,193 | $46,281 | 22.9% |
The territorial tax gap between Nunavut and the other two territories is visible at $60,000. Alberta is the closest provincial comparator in effective rate terms. For the full national picture, see the take-home pay province comparison guide.
Nunavut's nominal net income from employment is higher than any province or territory for the same gross salary, but purchasing power is another matter. Groceries, fuel, and housing in Iqaluit and Nunavut's other communities consistently rank among the most expensive in Canada, often running two to three times southern Canadian prices for basic goods. An income that looks strong on paper in Nunavut may represent substantially less real purchasing power than the same net income in most southern cities. The take-home pay calculator shows nominal net income; real after-tax purchasing power requires applying local cost-of-living data.
Q: With Nunavut's low territorial tax, is it significantly better financially than living in a province?
On nominal take-home pay, yes. Nunavut's combination of a 4% starting rate and $19,659 BPA means territorial tax at middle incomes is substantially lower than any province. At $60,000, the territorial tax advantage over Ontario is several hundred dollars annually. However, Nunavut's cost of living is among the highest in Canada. Housing, groceries, and consumer goods are significantly more expensive in most Nunavut communities than in southern Canada. Whether the tax savings offset higher living costs depends heavily on the specific community, industry (many northern salaries carry regional allowances), and individual spending patterns.
Every Nunavut employee’s paycheque has deductions taken off before they see the money: federal income tax, Nunavut provincial tax, base CPP, CPP2 (for higher earners), and EI. Here is what each piece does, in the order the calculator applies them.
Nunavut employees contribute to CPP at the standard federal rate. In 2026, the first $3,500 of earnings is exempt. Earnings between $3,500 and $74,600 are subject to base CPP at 5.95%, for a maximum contribution of $4,230.45. Earnings between $74,600 and $85,000 are subject to CPP2 at 4%, for a maximum of $416. Earnings above $85,000 are not subject to CPP.
EI premiums are 1.63% on insurable earnings up to $68,900, for a maximum annual premium of $1,123.07. Earnings above $68,900 are not subject to EI.
Federal tax uses Canada's progressive bracket structure. The 2026 federal brackets:
| Taxable income (2026) | Federal rate |
|---|---|
| Up to $58,875 | 14% |
| $58,875 to $117,750 | 20.5% |
| $117,750 to $182,630 | 26% |
| $182,630 to $260,625 | 29% |
| Over $260,625 | 33% |
Every taxpayer gets the federal basic personal amount (BPA) of $16,452 as a non-refundable credit, effectively sheltering that amount from federal tax. The BPA phases down for net income above $181,440.
Nunavut has four territorial tax brackets with rates ranging from 4% to 11.5% — the lowest starting rate and one of the lowest top rates among all Canadian provinces and territories. Combined with a high basic personal amount ($19,659), Nunavut has the lightest income tax burden of any jurisdiction in Canada for most income levels.
The 2026 Nunavut brackets:
| Taxable income (2026) | Nunavut rate |
|---|---|
| Up to $55,801.00 | 4% |
| $55,801.00 to $111,602.00 | 7% |
| $111,602.00 to $181,439.00 | 9% |
| Over $181,439.00 | 11.5% |
Nunavut basic personal amount: $19,659.00
Nunavut's 4% starting rate is the lowest of any Canadian jurisdiction. It reflects a territorial policy to keep income taxes low given the high cost of living and limited economic base in the territory. The Nunavut government relies heavily on federal transfer payments to fund public services.
Here is how a $80,000.00 Nunavut salary breaks down under 2026 rates. Your actual number will differ if you have RRSP contributions, non-standard TD1 credits, or employer-side deductions.
| Gross salary | $80,000.00 |
| CPP (base) | − $4,230.45 |
| CPP2 | − $216.00 |
| EI | − $1,123.07 |
| Federal income tax | − $10,292.73 |
| Nunavut provincial tax | − $3,139.61 |
| Total deductions | − $19,001.86 |
| Net take-home | $60,998.14 |
Effective total deduction rate: 23.8% | Monthly net: ~$5,083.18
No surtax or health premium in Nunavut
The figure above is what the calculator returns for a standard single-employer, full-year employment scenario in Nunavut. Real paycheques vary for a handful of common reasons:
RRSP contributions reduce your taxable income dollar-for-dollar, lowering both federal and provincial income tax.
Additional TD1 credits (spousal amount, disability amount, tuition carry-forward, etc.) reduce source deductions. This calculator assumes only the basic personal amount.
Employer-side deductions — benefits premiums, pension contributions, union dues — come off before or after tax depending on the benefit. They are not modelled here.
Mid-year job changes can cause CPP and EI to be over-deducted, since each employer restarts the deduction from zero. Any excess is reconciled on your return.
For anything more complex than the standard case, use the CRA's PDOC or consult a payroll professional.
Why does Nunavut have the lowest income tax rate in Canada?
Nunavut's territorial government keeps income taxes low as a matter of policy, partly to offset the very high cost of living in northern communities. The territorial government is largely funded through federal transfers rather than own-source tax revenue.
How does Nunavut's 4% rate compare to other territories?
Yukon starts at 6.4% and NWT at 5.9%. Nunavut's 4% first bracket is 1.9–2.4 percentage points lower — meaningful at lower incomes. At $80,000 the overall territorial tax bill is roughly $1,200–$1,500 lower in Nunavut than in Yukon or NWT.
Is Nunavut actually affordable despite low taxes?
Income taxes are low, but cost of living in Nunavut is among the highest in Canada. Groceries, housing, and fuel in communities like Iqaluit can cost two to three times southern Canadian prices. Net income after taxes may look good on paper but purchasing power is substantially lower.
What is Nunavut's top combined marginal rate?
44.5% (33% federal + 11.5% Nunavut) on income above $181,439 — the lowest top combined rate of any Canadian jurisdiction.
Service Canada — EI premium rates and maximums
Rates last verified against source documents: January 2026.
