Yukon Marginal Tax Rate (2025)

How to read the combined brackets

Canada taxes income progressively at two levels — federal and Yukon 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 Yukon for 2025: it falls in the $57,375–$114,750 band, where the combined federal + provincial marginal rate is 29.50% (20.50% federal + 9.00% Yukon). 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 Yukon

Yukon is the only jurisdiction published here whose bracket thresholds match the federal ones exactly through the first four brackets — it only sets its own rate, not its own income cutoffs, until a much higher top bracket. That means a Yukon retiree crosses a combined-rate threshold at precisely the same income where the federal rate itself changes, which isn't true anywhere else on this list.

Structurally, Yukon runs 5 provincial brackets for 2025, from 6.40% up to 15.00%. Laid over the federal brackets, that produces 6 distinct combined bands — meaning a Yukon retiree crossing from the bottom of the table to the top passes through 5 separate rate increases, starting at 20.90% and finishing at 48.00% once taxable income passes $500,000.

The Yukon basic personal amount is $16,129 against a federal amount of $16,129 — $0 less than the federal figure, so provincial tax begins at a lower income than federal tax does. 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 Yukon 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.