Nunavut budget 2024–25

Tax Alert 2024 No. 08, 27 February 2024

On 26 February 2024, Nunavut Finance Minister Lorne Kusugak tabled the territory’s fiscal 2024–25 budget. The budget contains no new taxes and no income tax increases.

The minister anticipates an operating deficit of $14.6 million for 2023–24 and projects an operating deficit of $21.0 million for 2024–25.

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 $500,000 small-business limit.

Nunavut’s 2024 corporate income tax rates are summarized in Table A.

Table A – 2024 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 $100 million 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 2024 Nunavut personal income tax rates are summarized in Table B.

Table B – 2024 Nunavut personal income tax rates

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1. See EY Tax Alert 2023 Issue No. 20, Federal budget 2023–24.
2. For more information, see EY Tax Alert 2024 Issue No. 6, Canada’s new clean technology investment tax credit.

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