Personal income tax that you pay in Canada on your annual income have two components.
Each province in Canada levy income tax on the taxable income of a resident of that province. A province also levies income tax on a non-resident of Canada if the source of income is in that province. You are considered a resident of the province based on your residency status as of Dec 31st.
The income tax rates that a province levies on your personal income vary from province to province.
The province of Nunavut has the lowest income tax rate that a resident of Nunavut pays. The 2024 income tax rates and brackets are as follows:
| Tax rate | Taxable income threshold |
|---|---|
| 4% | on the portion of taxable income that is $53,268 or less, plus |
| 7% | on the portion of taxable income over $53,268 up to $106,537, plus |
| 9% | on the portion of taxable income over $106,537 up to $173,205, plus |
| 11.5% | on the portion of taxable income over $173,205 |
Like other provinces, Nunavut also have benefits for individuals and families.
If you were the resident of Nunavut, you file an income tax return in Nunavut and report your income and deductions on Form NU428.