Northwest Territories Tax Brackets 2026
The Northwest Territories taxes income at four rates, from 5.90% to 14.05%, with an $18,198 basic personal amount that reaches further than Ottawa's. Nothing else bends its rates, no surtax, no premium and no reduction that shrinks with income, so there is less to explain here than for most provinces. These are the 2026 territorial and federal brackets, and what each band pays once both are combined.
The two schedules
Both taxes fall on taxable income, band by band.
| Taxable income over | Up to | Rate on that slice |
|---|---|---|
| $0 | $58,523 | 14% |
| $58,523 | $117,045 | 20.5% |
| $117,045 | $181,440 | 26% |
| $181,440 | $258,482 | 29% |
| $258,482 | and up | 33% |
| Taxable income over | Up to | Rate on that slice |
|---|---|---|
| $0 | $53,003 | 5.9% |
| $53,003 | $106,009 | 8.6% |
| $106,009 | $172,346 | 12.2% |
| $172,346 | and up | 14.05% |
The territory's top rate starts at $172,346, ahead of Ottawa's 29% bracket, which begins at $181,440. That leaves a band where a dollar costs 40.05%, between the 38.20% below it and the 43.34% above. All four territorial thresholds rose with indexation this January.
What the table doesn't include
Most people who live in the Northwest Territories for at least six months in a row can claim the northern residents deduction on line 25500 of the federal return. It lowers taxable income, not the rates, so to use the table below, look up your income after that deduction rather than before it. The engine's figures here don't apply it, because its value depends on where you live and on travel benefits from an employer.
Federal plus territorial, on the next dollar
Rather than adding the two schedules, the table records what calc-hq's engine charges on one more dollar at each income, so the gap between the two personal amounts and the federal taper at the top are both in them. The income is assumed to carry no CPP or EI, the way investment or pension income doesn't.
| Taxable income | Tax on the next dollar | What starts here |
|---|---|---|
| $0 – $16,452 | 0.00% | |
| $16,452 – $18,198 | 14.00% | federal basic personal amount used up |
| $18,198 – $53,003 | 19.90% | Northwest Territories basic personal amount used up |
| $53,003 – $58,523 | 22.60% | Northwest Territories 8.6% bracket |
| $58,523 – $106,009 | 29.10% | federal 20.5% bracket |
| $106,009 – $117,045 | 32.70% | Northwest Territories 12.2% bracket |
| $117,045 – $172,346 | 38.20% | federal 26% bracket |
| $172,346 – $181,440 | 40.05% | Northwest Territories 14.05% bracket |
| $181,440 – $258,482 | 43.34% | federal 29% bracket + federal basic personal amount starts shrinking |
| $258,482 and up | 47.05% | federal 33% bracket + federal basic personal amount at its floor |
On a salary the rates run slightly lower until $85,000, where contributions stop: CPP and EI premiums earn a credit, and enhanced CPP is a deduction. From there on the two agree, with each threshold shifted $1,127 up the pay scale.
A $100,000 salary in Yellowknife
On $100,000 of pay, the engine charges $13,302 of federal tax and $5,724 of territorial tax, 19.0% of the salary between them, before any northern residents deduction. The next dollar costs 29.10%, the federal 20.5% plus the territory's 8.6%.
Your own figures: with Northwest Territories selected, the take-home pay calculator works out any salary, CPP and EI included.
Basic personal amounts
| Credit | Amount | Valued at | Tax it removes |
|---|---|---|---|
| Federal, net income up to $181,440 | $16,452 | 14% | $2,303 |
| Federal, net income $258,482 and up | $14,829 | 14% | $2,076 |
| Northwest Territories | $18,198 | 5.9% | $1,074 |
Between $16,452 and $18,198 of income only federal tax is owed. Only the federal amount tapers with net income, from $181,440 to $258,482.
Common questions
What are the Northwest Territories tax brackets for 2026?
5.90% on taxable income up to $53,003, 8.60% up to $106,009, 12.20% up to $172,346, and 14.05% above that, with federal tax charged on top.
What is the top combined tax rate in the Northwest Territories?
47.05% on taxable income over $258,482, where the federal 33% rate applies on top of the territory's 14.05%.
Does the northern residents deduction change my tax bracket?
It can. The deduction reduces taxable income, so it can move part of your income down into a lower bracket, but it does not change the rates themselves. Look up your taxable income after the deduction to find your marginal rate.