Tax Flash (Use this one going forward)

On Feb. 24, 2025, the Nunavut government released its 2025-26 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 2025 are outlined below:

Personal (combined) federal and Nunavut top marginal tax rates

 Rate
Interest/regular income44.50%
Capital gains22.25%
Eligible dividends33.08%
Non-eligible dividends37.79%

Corporate tax measures

No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2025 are outlined below:

 

Small business corporations

General corporations

 RateThresholdNon‑M&PM&P
Nunavut3.0%$500,00012.0%12.0%
Combined federal and Nunavut12.0%$500,00027.0%27.0%

Other tax measures

Carbon pricing

Effective April 1, 2025, the price of carbon will rise from $80 to $95 per tonne.

Property tax

Rates for the general taxation area ⁠–⁠ all properties outside of Iqaluit – will be increased by 10 per cent for the 2025 tax year. Tax notices will be issued to property owners by early fall.

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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