Nunavut Marginal Tax Rate (2025)

How to read the combined brackets

Canada taxes income progressively at two levels — federal and Nunavut provincial. Each band below shows the federal rate, the provincial rate, and the combined marginal rate that applies to income in that range. Only the dollars inside a band are taxed at that band’s rate, so crossing into a higher band never raises the tax on your earlier income.

Worked example

Take $80,000 of taxable income in Nunavut for 2025: it falls in the $57,375–$109,413 band, where the combined federal + provincial marginal rate is 27.50% (20.50% federal + 7.00% Nunavut). That rate applies only to the dollars inside this band — every dollar below it was taxed at the lower rates shown higher up the table.

What’s distinctive about Nunavut

Nunavut has the lowest tax rate in the country at every bracket, and the largest basic personal amount of any jurisdiction published here. A Nunavut retiree pays meaningfully less provincial-equivalent tax on the same RRIF or pension income than almost anywhere else in Canada, which is worth knowing if you're comparing a retirement plan across provinces rather than assuming the rate is roughly the same everywhere.

Structurally, Nunavut runs 4 provincial brackets for 2025, from 4.00% up to 11.50%. Laid over the federal brackets, that produces 8 distinct combined bands — meaning a Nunavut retiree crossing from the bottom of the table to the top passes through 7 separate rate increases, starting at 18.50% and finishing at 44.50% once taxable income passes $253,414.

The Nunavut basic personal amount is $19,274 against a federal amount of $16,129 — $3,145 more than the federal figure, so there is a band of income on which you owe federal tax but no Nunavut tax at all. For a retiree with modest income this is often the single most important number on the page: it sets how much RRIF or pension income you can take before the provincial rate applies to any of it.

Why this matters for retirement

When you take money from a RRIF, LIF, or RRSP, it’s taxed at your marginal rate. Knowing where the next threshold sits helps you decide how much to withdraw in a given year — the next-bracket calculator works this out for your exact income, and the retirement planner applies Nunavut rates across every year of a projection rather than just one.

One caution about reading any bracket table: the combined rates below exclude the OAS recovery tax, which adds an effective 15 percentage points above its threshold, and the roughly 50% reduction rate on GIS for lower-income retirees. Both are invisible here and both can exceed the rate step from crossing a bracket, so check them before concluding that a withdrawal is cheap.