Yukon’s small business tax rate has been reduced from two per cent to zero. This change took effect on January 1, 2021 as one of the measures introduced as part of the Budget Measures Implementation Act, 2020. This change will support Yukon businesses and is expected to save this sector approximately $2 million per year. Yukon joins Manitoba as one of two Canadian jurisdictions to permanently reduce this tax rate to zero. The government anticipates approximately 2,000 small businesses will benefit from the rate reduction.
Last spring, we made a commitment to support Yukon businesses by cutting the small business tax rate to zero. We are now putting money back into the pockets of those who keep our community going. From restaurant owners to tourism operators, this is money returning to hard working Yukoners at a time when it is needed most.
Minister of Finance Sandy Silver
The changes to the small business tax rate were introduced in March, 2020 as part of the Budget Measures Implementation Act, 2020.
In 2017, the Government of Yukon changed the Small Business Tax Rate from three per cent to two per cent, saving Yukon small businesses a total of approximately $1 million a year.