On Feb. 27, 2024, the Nunavut government released its 2024-25 budget. The following are highlights of the key tax measures.
Personal tax measures
No personal income tax rate changes were announced in this year’s budget. The current personal combined income tax rates for 2024 are outlined below:
| Personal (combined) federal and Nunavut top marginal tax rates | |
| Rate | |
| Interest/regular income | 44.50% |
| Capital gains | 22.25% |
| Eligible dividends | 33.08% |
| Non‑eligible dividends | 37.79% |
Corporate tax measures
No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2024 are outlined below:
| Small business corporation | General corporation | |||
| Rate | Threshold | Non‑M&P | M&P | |
| Nunavut | 3.0% | $500,000 | 12.0% | 12.0% |
| Combined federal and Nunavut | 12.0% | $500,000 | 27.0% | 27.0% |
Other tax measures
Tax on vaping products
Effective July 1, 2024, the Canada Revenue Agency will begin collecting Nunavut tax on vaping products sold in the territory. The tax rate levied will be in addition to, and consistent with, current federal rates.
Tax on liquor
The tax on alcohol consumed in or imported to Nunavut was introduced in 2022 and passed into law in 2023. The government is finalizing the rates and administration before it takes effect.
Next steps
Contact your Baker Tilly advisor to learn more about how we can help you navigate the complexities of the Canadian tax system.
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