Department of Finance

Department Overview

Yukon Income Tax

Yukon's Personal and Corporate Income Tax are administered by Canada Revenue Agency (CRA).  Forms and publications providing detailed information about filing requirements are available on CRA's web site at http://www.cra.gc.ca/.  Questions about Yukon income taxes and credits should be referred to CRA or to Taxation, Department of Finance, Government of Yukon at (867) 667-3074.

Keep more money in your pockets and make tax-filing season as easy as possible. Visit the Canada Revenue Agency’s to get ready to file your tax return.

Income Tax Rates

Yukon Specific Income Tax Measures

A complete list of income tax measures can be obtained by reviewing the Personal (T1) and Corporate (T2) tax returns.

Personal:

Personal and Corporate:

Corporate:

 


The following descriptions are provided as a brief overview of Yukon specific income tax measures only.  For specific application please refer to the relevant legislation.

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 Child Benefit Program - Personal

The Yukon Child Benefit was introduced in 1999.  This program is administered through the federal Child Tax Benefit program, and more information can be obtained by calling : 1-800-387-1193.

The following benefits are available effective July 1, 2015:
   a. $820 annually for each dependent child
   less
   b. 2.5% of family net income in excess of $35,000
   (families with one child)
   or
   c. 5.0% of family net income in excess of $35,000
   (families with more than one child).

The prescribed amounts prior to July 1, 2015 were:

• $690 and $30,000 for July 1, 2006 to June 30, 2015
• $450 and $25,000 for July 1, 2004 to June 30, 2006
• $300 and $16,700 for July 1, 1999 to June 30, 2004

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Small Business Investment Tax Credit - Personal 

The Small Business Investment Tax Credit was introduced in 1999, effective July 1, 1999 for qualified investments issued by an eligible small business corporation.  An eligible small business corporation is a private or co-operative corporation with:

   a. less than $25 million in assets,
   b. a permanent establishment in the territory,
      and
   c. at least 50% of assets and payroll in the Yukon.

Corporations that plan on offering qualified investments to investors must apply to the Department of Economic Development.  The certificates for claiming the credit are issued by the Yukon Department of Economic Development.  The tax credit is equal to 25% of qualified investments.  The maximum claim for a taxation year is $25,000.  It is claimable by individuals resident in the Yukon at the end of the taxation year that are at least 19 years old.  Unused amounts may be carried back 3 years or forward 7 years.

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First Nations Income Tax Credit - Personal

The credit is available only to individuals residing on Yukon First Nations Settlement Lands of the following 11 First Nations: Carcross/Tagish, Champagne and Aishihik, Kluane, Little Salmon/Carmacks, Nacho Nyak Dun, Selkirk, Teslin Tlingit, Tr'ondek Hwech'in, Vuntut Gwitchin, Ta'an Kwach'an and Kwanlin Dun.  As the remaining Yukon First Nations sign their respective Self-Government and Personal Income Tax Sharing Agreements, their residents will be able to claim the credit as well.

The credit forms a part of tax sharing arrangement with the above Self-Governing Yukon First Nations.  The purpose is to offer tax abatement to individuals who are resident on settlement lands, so the total amount of taxes otherwise payable to the Federal and Yukon governments would be the same.  The credit consists of 95% of Yukon territorial tax. To claim the credit an individual must file a personal tax return but in addition to Yukon Tax Credit Forms YT428 and YT479, the Yukon First Nations Tax Form YT432 must be completed and Self-Governing First Nation clearly identified.

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Political Contributions Tax Credit - Personal and Corporate

The Political Contributions Tax Credit was introduced in 1982.  It is available to both individuals and corporations that contribute to a recognized territorial political party or candidate for election to the Council of Yukon Territory.

 Beginning January 1, 2016 the maximum annual credit is $650. The credit amount is calculated as the sum of:

  • 75% of the first $400 of contributions
  • 50% of the next $350 of contributions
  • 33.33% of the next $525 of contributions. 

The maximum annual credit prior to January 1,2016 was $500 and the credit amount was calculated as the sum of:

  • 75% of the first $100 of contributions
  • 50% of the next $450 of contributions
  • 33.33% of the next $600 of contributions  

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Research and Development Tax Credit – Personal and Corporate

The Research and Development Tax Credit  provides a refundable tax credit for eligible expenditures made on or after January 1, 2001 for individuals and on or after July 1, 2000 for corporations.  Individuals must have been resident in the Yukon on the last day of the taxation year for which the credit is being claimed.  Corporations must have a permanent establishment in the Yukon.  The credit is refundable to the extent it exceeds income tax payable.  Eligible expenditures are qualifying expenditures for the federal R&D and are incurred in respect of scientific research and experimental development carried on in the Yukon.  The tax credit must be claimed within 12 months of the tax return filing due date and the credit that may be claimed is equal to the sum of:

a. 15% of total eligible expenditures,
plus additional

b. 5% of total eligible Yukon College expenditures.

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Foreign Tax Credit

A foreign tax credit is a deduction from the taxpayer’s Yukon tax otherwise payable that may be claimed in respect of foreign income or profits tax paid by the taxpayer for the year.  A foreign tax credit can provide relief from double taxation on certain income. 

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Yukon Manufacturing and Processing Profits Tax Credit -  Corporate

Large corporations engaged in manufacturing and processing  in Yukon may claim up to 12.5% on M and P profits earned in Yukon.

Small corporations engaged in manufacturing and processing  in Yukon may claim up to 1.5% on M and P profits earned in Yukon.

To obtain the tax credit, T2 Schedule 440 must be completed.

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Income Tax Rates

Corporate:

Year  2016 2015 

Effective

 July 1

2014 

to

 June 30

2014 

2013  2012
General Rate 15.0%  15.0%   15.0%  15.0%  15.0%  15.0%
Small Business Rate 3.0%  3.0%  3.0%  4.0%  4.0%  4.0%
Small Business Threshold $500,000   $500,000   $500,000  $500,000  $500,000  $500,000

Personal:

Year 2016  2015   2014  2013 2012
First Bracket Tax Rate 6.40%  6.40%  7.04% 

         7.04%

7.04%
Second Bracket Tax Rate 9.00%  9.00%  9.68%  9.68%  9.68%
Third Bracket Tax Rate 10.90%  10.90% 11.44%  11.44%  11.44%
Fourth Bracket Tax Rate 12.80%   12.80%  12.76%  12.76%  12.76%
Fifth Bracket Tax Rate  15.00%  15.00%   -    
First Bracket Tax Threshold up to 45,282  up to 44,701  up to 43,953  up to 43,561  up to 42,707
Second Bracket Tax Threshold 45,282 to 90,563  44,701 to 89,401   43,953 to 87,907 43,561 to 87,123  42,707 to 85,414
Third Bracket Tax Threshold 90,563 to 140,388  89,401 to 138,586  87,907 to 136,270  87,123 to 135,054  85,414 to 132,406
Fourth Bracket Tax Threshold 140,388 to 500,000 over 138,586   over 136,270  over 135,054  over 132,406
Fifth Bracket Tax Threshold  over 500,000  Over 500,000   -

 

Year 2016  2015  2014  2013  2012
Surcharge Rate - 5%  5%  5%
Surcharge Threshold - 6,000  6,000  6,000

 

Year 2016  2015  2014  2013  2012
Basic Personal Amount 11,474  11,327  11,138  11,038  10,882
Spousal Amount 11,474  11,327  11,138  11,038   10,882
Age Amount 7,125  7,033  6,916  6,854  6,720

 

 

Historical Yukon Tax Rates  top

 

Disclaimer

Disclaimer: This web site, including the bulletins, brochures, and notices, contains general information and is provided for convenience and guidance. If interpretation problems occur, please refer to the legislation or contact Taxation at.

Finance - Taxation

Mailing Address
Government of Yukon
Box 2703
Whitehorse, Yukon
Canada Y1A 2C6

Street Address
Yukon Government Administration Building
3rd Floor - Finance
2071 Second Avenue
Whitehorse, YT

Phone: (867) 667-5343
Fax: (867) 456-6709
E-mail:
fininfo@gov.yk.ca