On 25 May 2026, Nunavut Premier and Finance Minister John Main (the Minister) tabled the territory's fiscal 2026 budget. The budget contains no new taxes and no income tax increases.

The Minister anticipates an operating deficit of CA$312.7m for 2025-26 and projects an operating deficit of CA$169.3m for 2026-27.

Following is a brief summary of the key tax measures.

Business tax measures

Corporate income tax rates

No changes are proposed to the corporate income tax rates or the CA$500,000 small-business limit.

Nunavut's 2026 corporate income tax rates are summarized in Table A.

Table A — 2026 Nunavut corporate income tax rates¹

¹ The rates represent calendar-year-end rates unless otherwise indicated.

² The federal corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% federal general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% federal small-business corporate income tax rate. These reductions are not reflected in the combined federal and Nunavut rates above.

³ An additional tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a CA$100m exemption to be shared by group members).

Personal tax

Personal income tax rates

The budget does not include any changes to personal income tax rates.

The 2026 Nunavut personal income tax rates are summarized in Table B.

Table B — 2026 Nunavut personal income tax rates

For taxable income exceeding CA$117,045, the 2026 combined federal-Nunavut personal income tax rates are outlined in Table C.

Table C — Combined 2026 federal and Nunavut personal income tax rates

¹ The rate on capital gains is one-half the ordinary income tax rate.

² The federal basic personal amount comprises two elements: the base amount (CA$14,829 for 2026) and an additional amount (CA$1,623 for 2026). The additional amount is reduced for individuals with net income exceeding CA$181,440 and is fully eliminated for individuals with net income exceeding CA$258,482. Consequently, the additional amount is clawed back on net income exceeding CA$181,440 until the additional tax credit of CA$227 is eliminated; this results in additional federal income tax (e.g., 0.29% on ordinary income) on net income between CA$181,441 and CA$258,482.

Personal tax credits

Nunavut Child Benefit

The budget proposes to double the Nunavut Child Benefit and to subsequently increase it each year to help keep up with the rising cost of living. Details regarding the payment structure of the enhanced benefit will be worked out with the Canada Revenue Agency in the next few months.

Other tax measures

Property tax

Property tax mill rates for the general taxation area (i.e., all properties outside of Iqaluit, the capital of Nunavut) will be increased by 10% for the 2026 tax year.

For up-to-date information on the federal, provincial and territorial budgets, visit ey.com/ca/Budget.