Updated Checked by the Tax-Services.ca editorial team How we check
The Northwest Territories has four income tax brackets, 5.9%, 8.6%, 12.2% and 14.05%, and an $18,198 basic personal amount. There's no territorial sales tax, so only the 5% GST applies.
The Northwest Territories keeps things simple: one set of brackets, one credit and no territorial sales tax. Here’s the detail, with a worked example for a $60,000 income.
What are the brackets for 2026?
The territorial rate is 5.9% on your first $53,003 of taxable income, 8.6% up to $106,009, 12.2% up to $172,346 and 14.05% above that. The basic personal amount is $18,198, and credits count at 5.9% of the amount you claim. Add the federal layer from the limits page. The territorial figures match the CRA page on 2026 tax rates and income brackets.
Take $60,000. The first $53,003 costs you $3,127 and the other $6,997 costs you $602, which makes $3,729. The basic amount credit takes off $1,074, so you’d pay about $2,655 of territorial tax. That works out to a little over $221 a month, a ballpark you can hold up against your own pay stub.
What’s different about the Northwest Territories?
Mostly what isn’t there. There’s no surtax, no health premium and no territorial sales tax, so the brackets are close to the whole story. The CRA says nothing changed during 2026: the July payroll edition shows the same brackets and rates as January.
That makes this one of the steadier tables to plan around. The basic personal amount is also large, at $18,198, which is why the credit wipes out so much of the first bracket.
How does sales tax work here?
Only the federal 5% GST applies, so a $100 item costs $105. On a $2,000 purchase, that’s $100 of GST. The GST and HST calculator shows the territory as GST only, and the sales tax guide compares the rest.
What if I work in the territory but live somewhere else?
Your provincial or territorial tax generally follows where you lived on December 31, not where the job is. A fly-in worker who lives in Alberta year-round pays Alberta’s rates, even with a paycheque from a Yellowknife employer. If it’s unclear which place counts as home, check the CRA’s residency guidance before you file.
Which calculators include it?
The income tax calculator and the take-home pay calculator both include the Northwest Territories. Pick it from the list and the Northwest Territories rates apply. Both show where each dollar of pay goes.
Where to read more
The guide to how income tax works explains the two layers, and the province index lists the others.
Before you rely on these numbers
Rates and credits do change, so check three things before you act on any figure here: the date at the top of the page, the CRA source we name, and your own slip or notice. Your slip or notice always wins if it differs from a summary like this one.
Don’t guess.
Not sure where to start? Our filing guide walks you through the steps, the document checklist shows what you’ll need, and the province index lets you compare where you live with other places. Is your situation unusual? Then a qualified preparer is the right call, and we can’t advise you ourselves.
What changed for 2026, and what is coming?
- The NWT rates for 2026 are 5.9% up to $53,003, 8.6% to $106,009, 12.2% to $172,346 and 14.05% above that. The basic personal amount is $18,198. Source
- The 2026-27 budget does not bring in new taxes. Some fees and property mill rates are adjusted for inflation. Source
- The NWT child benefit is paid monthly with the Canada child benefit. As an example, it is $67.91 for one child under 6 and $54.33 for one child aged 6 to 17. Source
- All of the NWT counts as Zone A for the northern residents deduction: $11.00 a day, plus another $11.00 a day if you kept and lived in a dwelling there and are the only one claiming it. These are the 2025 amounts on the CRA page. Source
Checked on official pages in October 2026. Items marked announced or proposed are not final, so confirm them with the province before you plan around them.
Frequently asked questions
What are the Northwest Territories income tax brackets for 2026?
5.9% on the first $53,003, 8.6% up to $106,009, 12.2% up to $172,346 and 14.05% above that.
Did the brackets change during 2026?
No. The CRA's July 2026 payroll edition states no change for the Northwest Territories.
Is there a territorial sales tax?
No. You pay only the 5% GST.
Where do these numbers come from?
From the CRA payroll tables and tax rates page, checked on September 29, 2026.