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 Revenue Services, Department of Finance, Government of Yukon at (867) 667-3074.
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:
- Low Income Family Tax Credit
- Child Benefit Program
- Small Business Investment Tax Credit
- First Nations Income Tax Credit
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.
Low Income Family Tax Credit - Personal
The Low Income Family Tax Credit was introduced in 1999. The credit reduces Yukon tax by up to $300 for individuals and families who were resident in the Yukon at the end of the year. The credit amount is the lessor of:
a. $300 minus 3% of net income in excess of $15,000
or
b. 80% of tax payable
The spouse with the higher net income must claim the credit. A credit is claimable if net income is less than $25,000.
Child Benefit Program - Personal
The Yukon Child Benefit Program was introduced in 1999. The following benefits were available from July 1, 1999 to June 30, 2004:
a. $300 annually for each dependent child
less
b. 2.5% of family net income in excess of $16,700
(families with one child)
or
c. 5.0% of family net income in excess of $16,700
(families with more than one child).
The 2004 Yukon Budget amended the benefits and income thresholds effective July 1, 2004 as follows:
a. $450 annually for each dependent childless
less
b. 2.5% of family net income in excess of $25,000
(families with one child)
or
c. 5.0% of family net income in excess of $25,000
(families with more than one child).
This program is administered through the federal Child Tax Benefit program, and more information can be obtained by calling 1-800-387-1193.
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.
First Nations Income Tax Credit - Personal
The credit is available only to individuals residing on Yukon First Nations Settlement Lands of the following 10 First Nations: Champagne and Aishihik, Kluane, Little Salmon/Carmacks, Nacho Nyak Dun, Selkirk, Tesling 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 is in effect since January 1, 1999, and forms a part of new 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 75% of basic federal tax and 95% of Yukon territorial tax. Subsequently these combined amounts are allocated to the Self-Governing First Nation. 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.
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. The maximum annual credit is $500 and the credit amount is 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.
Research and Development Tax Credit – Personal and Corporate
The Research and Development Tax Credit was introduced, effective 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.
Yukon Manufacturing and Processing Profits Tax Credit - Corporate
Corporations engaged in manufacturing and processing may claim an effective corporate rate of 2.5% on M and P income as determined on Schedule 27 of Federal Corporate Tax Return (T2). The rate is effective regardless whether the corporation qualifies for the small business tax rate. To obtain the 2.5% Yukon rate, T2 Schedule 440 must be completed and the corporation must claim 3.5% credit on income tax at the Yukon small business rate of 6%, and a 12.5% credit against income taxed at the 15% general Yukon Rate.
Corporate:
| Year | 2008 | 2007 | 2006 | 2005 | 2004 |
| General Rate | 15.0% | 15.0% | 15.0% | 15.0% | 15.0% |
| Manufacturing and Processing Rate | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% |
| Small Business Rate | 4.0% | 4.0% | 4.0% | 4.0% | 6.0% |
| Small Business Threshold | $400,000 | $400,000 | $300,000 | $300,000 | $250,000 |
| Small Business Manufacturing and Processing Rate | 2.5% | 2.5% | 2.5% | 2.5% | 2.5% |
Personal:
| Year | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 |
| First Bracket Tax Rate | 7.04% | 7.04% | 7.04% | 7.04% | 7.04% | 7.04% |
| Second Bracket Tax Rate | 9.68% | 9.68% | 9.68% | 9.68% | 9.68% | 9.68% |
| Third Bracket Tax Rate | 11.44% | 11.44% | 11.44% | 11.44% | 11.44% | 11.44% |
| Fourth Bracket Tax Rate | 12.76% | 12.76% | 12.76% | 12.76% | 12.76% | 12.76% |
| First Bracket Tax Threshold | up to 37,885 | up to 37,178 | up to 36,378 | up to 35,595 | up to 35,000 | up to 32,183 |
| Second Bracket Tax Threshold | 37,885 to 75,769 | 37,178 to 74,357 | 36,378 to 72,756 | 35,595 to 71,190 | 35,000 to 70,000 | 32,183 to 64,368 |
| Third Bracket Tax Threshold | 75,769 to 123,184 | 74,357 to 120,887 | 72,756 to 118,285 | 71,190 to 115,739 | 70,000 to 113,804 | 64,368 to 104,648 |
| Fourth Bracket Tax Threshold | over 123,184 | over 120,887 | over 118,285 | over 115,739 | over 113,804 | over 104,648 |
| Year | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 |
| Surcharge Rate | 5% | 5% | 5% | 5% | 5% | 5% |
| Surcharge Threshold | 6,000 | 6,000 | 6,000 | 6,000 | 6,000 | 6,000 |
| Year | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 |
| Basic Personal Amount | 9,600 | 9,600 | 8,839 | 8,148 | 8,012 | 7,756 |
| Spousal Amount | 9,600 | 9,600 | 7,505 | 6,919 | 6,803 | 6,586 |
| Age Amount | 5,276 | 5,177 | 5,066 | 3,979 | 3,912 | 3,787 |
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 the Revenue Services at.
Finance - Revenue Services
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