Find Yukon-specific income tax measures

  • Personal income tax
  • Corporate income tax
  • Personal and corporate income tax
  • 2019 income tax rates

This is a summary of Yukon-specific income tax measures. The Canada Revenue Agency (CRA) administers Yukon's personal and corporate income tax. Download forms and publications from the CRA website.

  1. Personal income tax

    Yukon child benefit program

    The Canada child benefit program administers the Yukon child benefit. It's added to the Canada child benefit and is 1 monthly payment.

    Yukon benefits available as of July 1, 2015:

    • $820 per year ($68.33 per month) for each dependant child.

    This amount starts to be reduced when your adjusted family net income is above $35,000.

    • 2.5% of family net income over $35,000 (families with 1 child); or
    • 5% of family net income over $35,000 (families with more than 1 child).

    For example, if you have 1 child and your adjusted family net income is $37,000, your benefit will be reduced by:

    • $37,000 - $35,000 = $2,000 x 2.5% = $50 per year ($4.17 per month).

    To learn more, visit the CRA child and family benefits page, or phone 1-866-426-1527.

    Small Business Investment Tax Credit

    If you invest in an eligible organization in Yukon, you can receive this credit.

    Eligible investors

    • 19 years of age or older; and
    • a Yukon resident on December 31 of the year in which the tax credit is claimed.

    Eligible Yukon organizations

    Yukon organizations must:

    • be an incorporated, private corporation;
    • maintain permanent establishment in Yukon;
    • have at least 50% of its assets located in Yukon;
    • pay at least 50% of its salaries and wages to Yukon residents; and
    • not exceed $25 million in assets.

    Eligible organizations can apply for the Yukon Small Business Investment Tax Credit.

    What you need to know about the tax credit

    • This credit allows Yukon organizations to issue shares to Yukon investors. This is done in exchange for an agreed upon return and an individual tax credit of 25% on the amount invested.
    • The maximum claim for a taxation year is $25,000.
    • Unused amounts can be carried back 3 years, or forward 7 years.
    • To file, you need the amount of the tax credit shown on YSBITC-1, Small Business Corporation Investment Tax Credit (issued by Government of Yukon).

    The CRA form you need to fill out:

    This credit came into effect on July 1, 1999.

    First Nations Income Tax Credit

    This tax credit is part of the tax-sharing arrangement. It ensures that a taxpayer living on settlement land does not pay more tax than if they resided on non-settlement land. The credit is equivalent to 95% of territorial tax.

    Eligibility

    People living on Yukon First Nations Settlement Lands of the following self-governing First Nations can apply for the credit:

    • Carcross/Tagish;
    • Champagne and Aishihik;
    • Kluane First Nation;
    • Kwanlin Dün First Nation;
    • Little Salmon/Carmacks First Nation;
    • First Nation of Na-Cho Nyäk Dun;
    • Selkirk First Nation;
    • Ta’an Kwäch’än Council;
    • Teslin Tlingit Council;
    • Tr’ondëk Hwëch’in; and
    • Vuntut Gwitchin First Nation.

    Other residents can claim the credit once their respective First Nation signs its:

    • Self-Government Agreement; and
    • Personal Income Tax Sharing Agreement.

    The CRA forms you need to fill out:

    Remember to identify your self-governing First Nation on the YT432 form.

  2. Corporate income tax

    Manufacturing and processing profits tax credit

    A list of income tax measures appears on the following tax returns:

    • general Income Tax Package (T1); and
    • Corporation Income Tax Return (T2).

    These forms are available on the CRA website.

    Yukon manufacturing and processing profits tax credit

    Eligibility

    • A corporation manufacturing and processing in Yukon.
    • Large corporations can claim up to 9.5% on manufacturing and processing profits earned in Yukon.
    • Small corporations can claim up to 0.5% on manufacturing and processing profits earned in Yukon.

    The CRA form you need to fill out:

  3. Personal and corporate income tax

    Political contributions tax credit

    For contributions to a recognized territorial political party or candidate for election to the Yukon Legislative Assembly by:

    • individuals; or
    • corporations.

    How much is the tax credit?

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

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

    The maximum annual credit before January 1, 2016, was $500. The credit amount was the sum of:

    • 75% of the first $100;
    • 50% of the next $450; and
    • 33.33% of the next $600.

    The CRA forms you need to fill out

    Research and development tax credit

    For eligible expenses by:

    • individuals; or
    • corporations.

    The credit is refundable if it exceeds your payable income tax.

    How to claim the tax credit

    You have to claim the tax credit within 12 months of the tax-return filing due date. The credit is equal to the sum of:

    • 15% of total eligible expenses; plus
    • an additional 5% of total eligible Yukon College expenses;
    • project eligibility;
    • for scientific research and experimental development; and
    • work takes place in Yukon.

    Eligibility

    • Individual.
    • A resident in the Yukon on the last day of the taxation year for which the credit is claimed.
    • Corporation.
    • Have a permanent base in Yukon.

    The CRA forms you need to fill out

    Foreign tax credit

    A foreign tax credit is a deduction from your payable Yukon tax. You can claim this credit if you've already paid foreign income or profits tax. The credit ensures that you are not taxed twice on the same income.

    The CRA form you need to fill out

     

  4. 2019 income tax rates

    Corporate

    • General rate 12%.
    • Small business 2%.
    • Small business threshold $500,000.

    Personal

    • 1st bracket tax rate 6.4%.
    • 2nd bracket tax rate 9%.
    • 3rd bracket tax rate 10.9%.
    • 4th bracket tax rate 12.8%.
    • 5th bracket tax rate 15%.

    Bracket tax threshold

    • 1st bracket tax threshold up to $47,630.
    • 2nd bracket tax threshold $47,630 to $95,259.
    • 3rd bracket tax threshold $95,259 to $147,667.
    • 4th bracket tax threshold $147,667 to $500,000.
    • 5th bracket tax threshold over $500,000.

    Surcharge

    • Rate 0.
    • Threshold 0.

    Personal amounts

    • Basic $12,069.
    • Spousal $12,069.
    • Age $7,494.

    Read about Yukon historical tax rates, including income tax rates.


Contact 

Questions about Yukon income taxes and credits should be directed to the CRA.

Personal income tax and benefit programs:

Business-related tax programs:

  • Phone: 1-866-841-1876 (note you must be within Yukon's 867 area code).

Other questions can be directed to the Government of Yukon:

  • Email: fininfo@gov.yk.ca
  • Phone: 867-667-5343; or toll free in Yukon 1-800-661-0408, ext. 5343.