On February 25, 2020, the Government of Northwest Territories released its 2020-2021 budget.
Income taxes
Personal tax
No personal income tax rate changes were announced in this year’s budget. The current combined personal income tax rates for 2020 are outlined below:
|
Personal (combined) federal and N.W.T. top marginal tax rates |
|
|
|
Rates |
|
Interest/regular income |
47.05% |
|
Capital gains |
23.53% |
|
Eligible dividends |
28.33% |
|
Other-than-eligible dividends |
36.82% |
Corporate tax
No corporate income tax rate changes were announced in this year’s budget. The current corporate income tax rates for 2020 are outlined below:
|
|
Small business corporations |
General corporations |
||
|
|
Rate |
Threshold |
Non-M&P |
M&P |
|
Federal |
9.0% |
$500,000 |
15.0% |
15.0% |
|
Northwest Territories |
4.0% |
$500,000 |
11.5% |
11.5% |
|
Combined |
13.0% |
$500,000 |
26.5% |
26.5% |
Carbon tax
Effective July 1, 2020, federally mandated carbon tax rates will increase to $30 per tonne of greenhouse gas emissions. This means a tax rate increase of 2.3 cents per litre on gasoline and 2.7 cents per litre on diesel fuel. As previously announced, the N.W.T. Cost of Living Offset will increase as the carbon tax rate increases. As of July 1, 2020, the amounts will be $156 per year for an individual and $180 per year for a child.
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