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 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 2025 are outlined below:
| Small business corporations | General corporations | |||
| 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
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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