Our Yukon Income Tax Calculator shows how much of your income is deducted for federal and territorial taxes, CPP contributions, and EI premiums. It helps you calculate your net pay by applying territorial and federal tax rates and subtracting required contributions. By checking these figures, you can ensure your paycheque is correct.
You can also increase your earnings by recovering some of these taxes by claiming the Basic Personal Amount, making RRSP contributions, and applying for non-refundable credits based on your CPP and EI payments. Besides, Yukon offers additional credits, such as the Child Benefit, Business Investment Tax Credit, First Nations Income Tax Credit, and Political Contributions Tax Credit, after completing your federal return.
Use the calculator for a personalized estimate and check the details on rates, deductions, and credits that affect your pay.
What are the Territorial and Federal Income Tax Rates in Yukon?
Residents of Yukon pay two layers of income tax on the same return: federal tax, set by the Government of Canada, and territorial tax, set by the Yukon government. Both layers use a progressive structure, meaning your income is divided into brackets, and each bracket is taxed at its own rate. Only the portion of income that falls into a higher bracket is taxed at that higher rate.
Find a breakdown of the federal and territorial tax brackets to clearly show which rate applies to each portion of your income below.
Federal Tax Brackets
Residents of Yukon are subject to federal income tax with five brackets, ranging from 14% (the full-year rate for 2026) to 33%.
The list below outlines the federal tax brackets and their 2026 thresholds.
- 14% on the income up to $58,523
- 20.5% on the income over $58,523 to $117,045
- 26% on the income over $117,045 to $181,440
- 29% on the income over $181,440 to $258,482
- 33% on the income over $258,482
Yukon Tax Brackets
Similarly, Yukon’s territorial tax system has five brackets ranging from 6.4% to 15%. Yukon mirrors the federal indexation formula, so the first three territorial bracket thresholds are identical to the first three federal thresholds, with all amounts adjusted by a 2.0% indexation factor for 2026.
Unlike some provinces that impose surtaxes on top of the base rates, Yukon does not have an individual income tax surtax or a high-income surtax. Therefore, the Yukon income tax rates listed below represent the full territorial tax for each bracket.
- 6.4% on the income up to $58,523
- 9% on the income over $58,523 to $117,045
- 10.9% on the income over $117,045 to $181,440
- 12.8% on the income over $181,440 to $500,000
- 15% on the income over $500,000
Source: Payroll Deductions Tables – CPP, EI, and income tax deductions – Yukon – Government of Canada
How to keep most of your paycheque in Yukon
Workers in Yukon can boost their earnings by reducing their tax liabilities by using all available deductions and credits before filing. Every paycheck automatically takes out EI premiums, CPP contributions, and federal income tax. Higher earners may also need to pay an extra CPP2 contribution. Moreover, you can lower what you owe with various credits and deductions, such as the BPA, the CEA, and RRSP contributions.
The deductions and credits that can reduce your tax bill are:
Employment Insurance premium: These are calculated at 1.63% of your insurable earnings, with a maximum deduction of $1,123.07.
Canada Pension Plan contributions: These contributions are set at 5.95% on earnings above $3,500, with a maximum limit of $4,230.45. Additionally, higher earners who earn between $74,600 and $85,000 are required to pay an extra CPP2 contribution, up to $416.
Basic Personal Amount: The first $16,452 of income is effectively tax-free at both the federal and Yukon territorial levels. If your net income exceeds $181,440, the basic personal amount will gradually decrease, reaching a minimum of $14,829 for incomes of $258,482 or higher.
CPP and EI Credits: Your mandatory contributions to the CPP and EI generate non-refundable credits that directly reduce the tax you owe. These credits can be found on line 31200 of your tax return.
Canada Employment Amount: A $1,501 credit is available to all employed Canadians, with a similar credit available at the territorial level in Yukon.
RRSP Deductions: Contributions to your RRSP will reduce your income reported on line 15000 before any taxes are calculated.
Employment Expenses: Eligible workers with a signed T2200 form from their employer can deduct home office expenses and other employment-related costs by using Form T777.
If you have investment income, your T5 slip or T3 slip contributes to line 12900 and other lines. Carefully tracking those slips ensures that no deductible carrying charges or losses are overlooked.
Which Yukon tax credits can lower your bill?
Yukon provides additional territorial tax credits and benefits beyond federal credits, with four key offerings for individuals: the Child Benefit, the First Nations Credit, the Business Investment Credit, and the Political Contributions Credit. The Yukon Child Benefit is a separate, non-taxable monthly benefit that is administered in conjunction with the Canada Child Benefit. The Yukon First Nations Tax Credit is calculated using Form YT432, while refundable Yukon credits may require Form YT479. For Yukon territorial tax and non-refundable credit items, you should use Form YT428. You should complete after finishing the federal portion of your income tax and benefit return.
Here are 4 items that you can consider to save more money:
Yukon Child Benefit
This is a non-taxable monthly payment to assist low- and modest-income families with the costs of raising children under 18 years of age. It is combined with the Canada Child Benefit into a single monthly payment of $78.08 per child, and there is no need for a separate application. The benefit begins to decrease once your adjusted family net income exceeds $35,000.
First Nations Income Tax Credit
If you lived on the settlement land of a self-governing Yukon First Nation at the end of the year, complete Form YT432. This will help you calculate the portion of your federal and territorial tax that is transferred to the self-governing Yukon First Nation government responsible for the settlement land where you resided.
Your total tax amount does not increase. Due to tax-sharing agreements, 95% of the territorial portion of your tax is allocated to the First Nation government in your area.
Business Investment Tax Credit
This credit equals 25% of the value of eligible shares and subordinated debt that you invested in qualifying Yukon businesses, with a maximum limit of $25,000 per year. Unused credits can be carried forward for seven years or carried back for three years.
Political Contributions Tax Credit
You can claim this credit if you contributed to a registered Yukon political party or to a candidate seeking election to the Yukon Legislative Assembly in 2025. The maximum annual credit is $650.
Additionally, Yukon has no territorial health premium and no payroll tax. For full eligibility details and current amounts, visit the Yukon government income tax page at yukon.ca, as a tax calculator may not capture every territorial credit.
FAQs about the Yukon income tax calculator
Which CRA form do you use to calculate Yukon territorial tax?
You need to complete Form YT428 – Yukon Tax to calculate your territorial taxes and credits. This form should be filled out after you finish your federal income tax and benefit return.
Does Yukon have a sales tax that affects income tax calculations?
Yukon does not charge a Provincial Sales Tax (PST). However, the federal Goods and Services Tax (GST) of 5% applies in the territory, resulting in one of the lowest consumption tax rates in Canada.
What is the new Yukon fertility and surrogacy tax credit?
If you accessed fertility treatment or surrogacy services after January 2, 2024, you may be eligible for a refundable fertility tax credit. This credit covers 40% of eligible expenses, up to a maximum of $10,000 per year. You can begin claiming this credit in 2026 on your 2025 tax return, but you must provide receipts to support all claimed expenses.
What tax rules apply to First Nations residents living in Yukon?
If you resided on the settlement land of a self-governing Yukon First Nation at the end of the year, you must complete Form YT432 – Yukon First Nations Tax to calculate the portion of your federal and territorial tax transferred to the self-governing First Nation government, and attach a copy to your return.
