Asked about Nunavut territorial income tax for a self-employed sole proprietor.
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General reference only
This Guide is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
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NU territorial rate — Band 1 (0–54,707)
4.00%Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
NU territorial rate — Band 2 (54,708–109,413)
7.00%Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
NU territorial rate — Band 3 (109,414–177,881)
9.00%Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
NU territorial rate — Band 4 (177,882+)
11.50%Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
NU bracket upper threshold — Band 1
CAD 54,707Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
NU bracket upper threshold — Band 2
CAD 109,413Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
NU bracket upper threshold — Band 3
CAD 177,881Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
NU bracket lower threshold — Band 4
CAD 177,882Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
Basic Personal Amount (BPA) — 2025
CAD 19,274 (indexed; verify against CRA / GN published indexation tables)Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
BPA non-refundable credit value (BPA × lowest rate)
CAD 770.96 (= CAD 19,274 × 4.00%)Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
Cost of Living Tax Credit — basic credit rate on first CAD 12,000 of taxable income
4% on first CAD 12,000 of taxable income = CAD 480.00 basic creditIncome Tax Act (Nunavut), S.Nu. 2001, c. 7; NU479
Cost of Living Tax Credit — basic credit income threshold
CAD 12,000 (first CAD 12,000 of taxable income)Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU479
Cost of Living Tax Credit — supplementary credit income phase-out range
CAD 12,000 – CAD 65,000 (phase-out above CAD 65,000)Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU479
Cost of Living Tax Credit — refundable
Refundable (reduces basic tax then refundable)Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU479
Nunavut Political Contribution Tax Credit — maximum credit
CAD 500 (tiered, max CAD 500 credit)Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
Nunavut Volunteer Firefighters' Tax Credit — amount
CAD 500 non-refundableIncome Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
Filing deadline — self-employed
June 15Income Tax Act (Canada), s. 150(1)(d); Income Tax Act (Nunavut), S.Nu. 2001, c. 7
Tax payment due date
April 30Income Tax Act (Canada), s. 156.1; Income Tax Act (Nunavut), S.Nu. 2001, c. 7
Residency requirement for NU428
Must be resident of Nunavut on December 31 of the tax yearIncome Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
Federal taxable income line used as base for NU428
T1 line 26000CRA T1 General Return; NU428
Federal net income line used for Cost of Living credit
T1 line 23600CRA T1 General Return; NU479
Prescribed northern zone designation — Nunavut
ALL of Nunavut is a prescribed northern zone (Northern Residents Deductions apply — T1 line 25500)Income Tax Regulations (Canada), s. 7303.1; T1 line 25500
Top marginal territorial rate — Nunavut (lowest in Canada)
11.50%Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
BPA credit rate (rate applied to BPA for non-refundable credit calculation)
4.00% (lowest NU bracket rate)Income Tax Act (Nunavut), S.Nu. 2001, c. 7; NU428
Nunavut Child Benefit (NUCB) — administration basis
Refundable monthly benefit; assessed from T1 net income; administered by CRAIncome Tax Act (Nunavut), S.Nu. 2001, c. 7; CRA T1
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.
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Other Canada computations in the OpenAccountants Tax Library.
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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