Nunavut territorial income tax for a self-employed sole proprietor.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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Every figure is drawn from this Guide and cited to its source.
Nunavut BPA 2025
approximately $19,274
Minimum viable inputs
territory of residence on Dec 31 (must be Nunavut), federal taxable income (T1 line 26000), federal net income.
Recommended inputs
marital status, spouse income, children, Inuit beneficiary status under Nunavut Agreement, T1 line 23600 (for Cost of Living credit).
Ideal inputs
complete T1 data, prior NU428, GN credit assessments.
R-NU-1
Province/territory is not Nunavut on December 31.R-NU-1
R-NU-2
Individual sole proprietors only.R-NU-2
R-NU-3
Escalate. Apply NU rates only to the period of Nunavut residency.R-NU-3
R-NU-4
Escalate. Nunavut has no Indian Act reserves but specific Nunavut Agreement provisions may apply to Inuit beneficiaries.R-NU-4
EC-NU-1
Verify the current NU479 supplementary formula from the GN Department of Finance before computing. Conservative default: report basic credit only and flag supplementary as [T2].
EC-NU-2
Federal Northern Residents Deductions (line 25500 of T1) reduce federal taxable income for residents of prescribed northern zones. ALL of Nunavut is a prescribed northern zone. Confirm the deduction is claimed federally before computing NU428; it will lower territorial taxable income proportionally.
EC-NU-3
Income arising directly from the Nunavut Agreement (e.g., royalty distributions to a Designated Inuit Organization) may have specific tax treatment. Escalate.
EC-NU-4
If T2125 includes Nunavut mining royalty income, escalate — interactions with the Nunavut Agreement royalty mechanism are complex.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Quick Reference
| Field | Value |
|---|---|
| Country | Canada -- Nunavut |
| Tax | Territorial income tax (NU428) |
| Currency | CAD only |
| Tax year | Calendar year |
| Primary legislation | Income Tax Act (Nunavut), S.Nu. 2001, c. 7 |
| Tax authority | CRA on behalf of Nunavut (Department of Finance, GN) |
| Filing portal | CRA My Account / NETFILE / EFILE |
| Form | NU428 -- Nunavut Tax; NU479 (Credits) |
| Filing deadline | June 15 (self-employed); payment due April 30 |
| Contributor | Open Accountants Community |
| Validated by | Live status: https://openaccountants.com/skills/nu-individual-return |
| Skill version | 1.0 |
Nunavut Tax Rates (2025, indexed from 2024)
| Taxable Income (CAD) | Rate |
|---|---|
| 0 -- 54,707 | 4.00% |
| 54,708 -- 109,413 | 7.00% |
| 109,414 -- 177,881 | 9.00% |
| 177,882+ | 11.50% |
Nunavut has the lowest top marginal territorial rate in Canada at 11.50%.
Nunavut historically has had the highest territorial BPA in Canada.
Nunavut-specific credits
| Credit | Notes |
|---|---|
| Nunavut Cost of Living Tax Credit | Refundable. Two components: basic credit on first $12,000 of taxable income at 4%; supplementary credit on income $12,000–$65,000 with a phase-out. Reduces basic tax then refundable. |
| Nunavut Child Benefit (NUCB) | Refundable monthly benefit administered by CRA; not on NU428 directly but assessed from T1 net income. |
| Nunavut Political Contribution Tax Credit | Tiered, max $500 credit. |
| Nunavut Volunteer Firefighters' Tax Credit | $500 non-refundable. |
Conservative Defaults
| Ambiguity | Default |
|---|---|
| Unknown territory | Do not apply this skill |
| Inuit beneficiary under Nunavut Agreement | Apply standard rules; escalate any s. 87 / Nunavut Agreement question |
| Part-year resident | Escalate |
| Unknown bracket year | 2025 indexed figures |
Nunavut tax is computed from federal return data. Transaction classification is in ca-fed-t2125.
Input: Taxable income $22,000. Single.
Computation:
Input: Taxable income $85,000. Single.
Computation:
Input: Taxable income $300,000. Single.
Computation:
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified Canadian CPA familiar with Nunavut territorial tax before filing.
The most up-to-date, verified version of this skill is maintained at openaccountants.com.
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Other Canada computations in the OpenAccountants Tax Library.
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