- Personal income tax
- Corporate income tax
- Personal and corporate income tax
- 2023 income tax rates
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.
Business Investment Tax Credit
If you invest in an eligible organization in the Yukon, you can receive this credit.
- 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 the Yukon;
- have its head office located in the Yukon;
- pay at least 25% of its salaries and wages to Yukon residents; and
- not exceed $100 million in assets.
Eligible organizations can apply for the Yukon 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, Business Investment Tax Credit (issued by Government of Yukon).
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.
People living on Yukon First Nations Settlement Lands of the following self-governing First Nations can apply for the credit:
- 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.
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
- A corporation manufacturing and processing in the Yukon.
- Large corporations can claim up to 9.5% on manufacturing and processing profits earned in the Yukon.
- Small corporations can claim up to 0.5% on manufacturing and processing profits earned in the Yukon.
From January 1, 2021, the small business tax rate was reduced to 0%. As a result, the manufacturing and processing profits tax credit no longer applies to small corporations.
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
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.
Research and development tax credit
For eligible expenses by:
- individuals; or
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 the Yukon.
- A resident in the Yukon on the last day of the taxation year for which the credit is claimed.
- Have a permanent base in the Yukon.
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.
2023 income tax rates
- General rate 12%.
- Small business 0%.
- Small business threshold $500,000.
- 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 $53,359.
- 2nd bracket tax threshold $53,359 to $106,717.
- 3rd bracket tax threshold $106,717 to $165,430.
- 4th bracket tax threshold $165,430 to $500,000.
- 5th bracket tax threshold over $500,000.
- Rate 0.
- Threshold 0.
- Base: $13,521.
- Maximum: $15,000.
- Base: $13,521.
- Maximum: $15,000.
Read about Yukon historical tax rates, including income tax rates.
Questions about Yukon income taxes and credits should be directed to the CRA.
Personal income tax and benefit programs:
- Visit: personal income tax for Yukoners on the CRA website.
- Phone: 1-866-426-1527 (note you must be within the Yukon's 867 area code).
Business-related tax programs:
- Phone: 1-866-841-1876 (note you must be within the Yukon's 867 area code).
Other questions can be directed to the Government of Yukon:
- Email: email@example.com
- Phone: 867-667-5811 or toll free in the Yukon 1-800-661-0408 and ask for Fiscal Policy.