In Nunavut, the sales tax you pay is just the 5% federal Goods and Services Tax (GST). The territory does not charge a provincial sales tax and does not participate in the Harmonized Sales Tax, so a $100 purchase costs $105 at the register.1Canada Revenue Agency. Charge and Collect the GST/HST – Which Rate to Charge That puts Nunavut among the lowest-tax jurisdictions in Canada for consumer spending.
How Nunavut’s Rate Compares
The GST is a federal value-added tax charged at 5% everywhere in Canada. What varies is whether a province adds its own tax on top. Five provinces fold their share into an HST collected by the federal government, pushing combined rates to 13% in Ontario and 15% in the Atlantic provinces. Others run a separate provincial sales tax. Nunavut does neither.2Canada Revenue Agency. Place of Supply in a Province – Overview
The same item that costs $105 in Iqaluit would cost $113 in Ontario and $115 in Nova Scotia. For residents who face some of the highest shipping and living costs in the country, that gap matters.
What Isn’t Taxed
Two categories escape GST at the till: zero-rated goods (technically taxable at 0%) and exempt supplies (outside the tax altogether). For a shopper, both look the same on the receipt.
Basic groceries are zero-rated. That covers staples like milk, bread, vegetables, and meat, but not snack foods, carbonated drinks, candy, or prepared single-serving baked goods, which are taxed at 5%.3Canada Revenue Agency. Charge and Collect the GST/HST – Type of Supply4Justice Laws Website. Excise Tax Act – Schedule VI, Zero-Rated Supplies Prescription drugs dispensed by a pharmacist or medical practitioner are zero-rated, as are listed medical and assistive devices such as hearing aids and artificial limbs.5Canada Revenue Agency. Medical and Assistive Devices Feminine hygiene products, including tampons, sanitary napkins, and menstrual cups, have been zero-rated since 2015.6Canada Revenue Agency. Notice of Ways and Means Motion Concerning GST/HST and Feminine Hygiene Products
Exempt supplies include long-term residential rent (leases of one month or more), many educational services such as vocational training courses, and most financial services, including lending and deposit accounts.7Canada Revenue Agency. General Information for GST/HST Registrants You pay no GST on any of these.
The GST/HST Credit for Residents
Low- and modest-income residents can offset some of the GST they pay through the GST/HST credit, a quarterly payment from the Canada Revenue Agency. For the July 2025 to June 2026 payment period, the maximum annual amounts are:
- Single individual: $533
- Married or common-law couple: $698
- Each child under 19: $184
You don’t apply separately. Filing your annual income tax return is enough for the CRA to assess eligibility and calculate the payment, which arrives in four instalments.8Canada Revenue Agency. GST/HST Credit
Section 87 Exemption for Status First Nations Purchasers
Section 87 of the Indian Act exempts the personal property of a First Nations individual or band situated on a reserve from taxation.9Justice Laws Website. Indian Act RSC 1985 c I-5 – Section 87 In practice, qualifying purchases made on a reserve by a status First Nations person are not subject to GST.
The exemption hinges on the location and nature of the transaction, not just the identity of the buyer. Goods delivered to a reserve, or purchased at a store on a reserve, generally qualify. Purchases made off-reserve typically do not, though point-of-sale relief is available in some circumstances. Retailers serving status First Nations customers should understand the documentation the CRA requires to apply the exemption correctly.
Online Orders Shipped to Nunavut
When you order from a seller in another province, tax is based on where the goods are delivered, not where the seller is located. This is the core of the place-of-supply rules under the Excise Tax Act.2Canada Revenue Agency. Place of Supply in a Province – Overview A retailer in Ontario (13% HST) shipping to a Nunavut address must charge only 5% GST.10Canada Revenue Agency. GST/HST and Place-of-Supply Rules If a seller charges you their local rate instead, that’s an error to raise with them.
Goods Imported From Outside Canada
Items shipped into Canada from abroad are generally subject to GST calculated on the Canadian dollar value of the goods, including any duty and excise tax. The Canada Border Services Agency collects it at the border, not the foreign seller. Because Nunavut is not an HST territory, only the 5% federal portion applies.11Canada Revenue Agency. GST/HST on Imports and Exports
Low-value shipments get some relief. Goods worth $20 or less sent by mail from any country enter duty- and tax-free. For courier shipments from the United States or Mexico, the tax-free threshold is $40, and shipments between $40 and $150 are duty-free but still subject to GST. Courier shipments from other countries follow the $20 threshold.12Canada Border Services Agency. Increase to Low-Value Shipment Thresholds and Other Changes Alcohol, tobacco, and cannabis never qualify regardless of price.
New Housing Rebate
If you buy or build a new home in Nunavut as your primary residence, you may qualify for a rebate of a portion of the GST paid. It applies to new construction, substantial renovations, new mobile homes, and cooperative housing units. The fair market value of the home at substantial completion must be less than $450,000, and the rebate is not available to corporations or partnerships.13Canada Revenue Agency. GST/HST New Housing Rebate Given territorial construction costs, that $450,000 ceiling is a real constraint. File the rebate application promptly after closing or completing construction.
When a Business Has to Charge GST
If your business earns more than $30,000 in taxable revenue over four consecutive calendar quarters, you lose small-supplier status and must register for a GST account with the CRA.14Canada Revenue Agency. When to Register for and Start Charging the GST/HST You also lose it immediately if you cross $30,000 within a single calendar quarter.15Canada Revenue Agency. Small Suppliers Public service bodies get a higher $50,000 threshold. You can register online through the CRA’s Business Registration portal, by phone, or by mail.16Canada Revenue Agency. Register for a GST/HST Account
Businesses under the threshold can register voluntarily to claim input tax credits on their own GST-paid purchases.17Canada Revenue Agency. Register Voluntarily for a GST/HST Account In Nunavut, where freight on inventory and supplies is often steep, those credits on shipping and stock can add up.18Canada Revenue Agency. Input Tax Credits Businesses selling only exempt supplies cannot claim input tax credits at all.
Filing Frequency
How often you file depends on annual taxable revenue:
- $1,500,000 or less: annual (quarterly or monthly optional)
- $1,500,001 to $6,000,000: quarterly (monthly optional)
- Over $6,000,000: monthly, no other option
Most small businesses in Nunavut file annually.7Canada Revenue Agency. General Information for GST/HST Registrants Annual filers with a December 31 fiscal year-end have until June 15 to file, but any balance owing is due April 30.
Late-Filing Penalty
If you owe money and file late, the CRA charges 1% of the amount owing, plus 25% of that 1% for each full month the return is overdue, up to 12 months.19Canada Revenue Agency. GST/HST Filing Penalties On a $10,000 balance, that’s a $100 initial penalty plus $25 for every additional full month, with interest on top. No late-filing penalty applies if you owe nothing or the CRA owes you a refund. Failing to register once you’ve crossed $30,000 is a separate problem: the CRA can assess you for the GST you should have collected but didn’t, plus interest.