For the 2026 tax year, Yukon tax rates on personal income run from 6.4% on the first $58,523 of taxable income up to 15% on income above $500,000, split across five brackets. The territory charges no sales tax, small business corporate income is taxed at 0% up to $500,000, and the general corporate rate is 12%. Every rate below sits on top of federal tax, which you pay as well.
Personal Income Tax Brackets for 2026
Yukon uses five graduated brackets. The rates themselves haven’t moved in recent years, but the income thresholds are indexed to inflation. For 2026:
- 6.4% on the first $58,523 of taxable income
- 9% on income from $58,523 to $117,045
- 10.9% on income from $117,045 to $181,440
- 12.8% on income from $181,440 to $500,000
- 15% on income over $500,000
Federal tax applies on top of these territorial rates. The lowest federal bracket starts at 14% on the first $58,523 and climbs to 33% on income above $258,482.1Canada.ca. Income Tax Rates and Income Thresholds The bottom federal rate dropped from 15% to 14% starting in 2026, which trims the combined bill slightly at every income level. Yukon tax is calculated on Form YT428 and filed with your federal return.2Canada Revenue Agency. Yukon – 2025 Income Tax Package
A concrete example: on $90,000 of taxable income in 2026, the territorial tax is 6.4% of the first $58,523 plus 9% of the next $31,477. Add federal tax and the combined marginal rate on that last dollar is 23%. At the top, a Yukoner earning above $500,000 faces a combined marginal rate of 48%.3Yukon.ca. Find Yukon-Specific Income Tax Measures
How Much Income Is Tax-Free
Every Yukon resident gets a basic personal amount that shields the first slice of income from territorial tax. For 2026, the maximum basic personal amount is $16,452 for people at or below the first bracket threshold, gradually reduced to a base of $14,829 for higher earners.3Yukon.ca. Find Yukon-Specific Income Tax Measures The federal basic personal amount uses the same figures.1Canada.ca. Income Tax Rates and Income Thresholds
On top of the basic personal amount, non-refundable credits are available for medical expenses, tuition, student loan interest, and charitable donations, among others. Territorial credits are calculated at the lowest bracket rate of 6.4%, so a $5,000 tuition credit reduces Yukon tax by $320. Non-refundable credits can bring your territorial tax to zero but can’t produce a refund on their own.
Corporate Tax Rates
Yukon’s small business corporate rate is 0% on the first $500,000 of active business income earned in the territory. Qualifying corporations pay only the federal small business rate on that first half-million, with nothing added at the territorial level.4Canada Revenue Agency. Yukon – Territorial Corporation Tax
Income above $500,000, and income earned by corporations that don’t qualify for the small business deduction, is taxed at the general territorial rate of 12%.5Canada Revenue Agency. Corporation Tax Rates Federal corporate tax is charged on top. A T2 return is due six months after fiscal year-end. Payment is due earlier: two months after year-end, or three months for Canadian-controlled private corporations claiming the small business deduction.
Sales Tax, Fuel, and Tobacco
There is no Yukon sales tax. The only sales tax on most purchases is the federal 5% GST. That puts Yukon in the same category as Alberta, the Northwest Territories, and Nunavut for consumer spending.
The territory does charge product-specific taxes. As of January 1, 2026, tobacco tax is $0.37 per cigarette and $0.37 per gram of loose tobacco.6Yukon.ca. Find Current Tobacco Tax Rates in the Yukon Fuel tax is 6.2 cents per litre on gasoline and 7.2 cents per litre on diesel.7Yukon Government. Find Current Fuel Tax Rates in the Yukon
Yukon is also covered by the federal fuel charge under the Greenhouse Gas Pollution Pricing Act. For 2026, that charge adds 24.22 cents per litre to gasoline and 29.41 cents per litre to light fuel oil used for home heating.8Canada.ca. Fuel Charge Rates for Listed Provinces and Territories for 2023 to 2030 The territorial carbon rebate that used to offset this cost ended in April 2025 after the federal government discontinued the consumer carbon pricing rebate; final payments to individuals went out on April 4, 2025.9Yukon.ca. Learn About Yukon’s Carbon Rebate
Payroll Deductions
Yukon has no separate territorial payroll tax, but federal payroll deductions come off every paycheque.
For 2026, the Canada Pension Plan employee contribution rate is 5.95% on pensionable earnings between $3,500 and $74,600, capping employee contributions at $4,230.45. Employers match that amount. Self-employed workers pay both halves, up to $8,460.90.10Canada.ca. CPP Contribution Rates, Maximums and Exemptions A second tier of CPP contributions (CPP2) applies to earnings above the first ceiling, adding more to the total for higher earners.
Employment Insurance premiums for employees are 1.63% on insurable earnings up to $68,900 in 2026, with a maximum annual premium of $1,123.07. Employers pay 1.4 times the employee rate, capping at $1,572.30 per employee.11Canada.ca. EI Premium Rates and Maximums
Employers also pay assessment premiums to the Workers’ Safety and Compensation Board. Rates vary by industry classification. For 2026, the WSCB set assessment rates higher across rate groups, returning to levels comparable to the 2020–2024 average, with a maximum assessable earnings cap of $107,599.12Workers’ Safety and Compensation Board. WSCB Reflects on the Past Year and Looks Ahead With 2026 Industry Assessment Rates
Filing Deadline and Late Penalties
Personal returns for the 2025 tax year are due April 30, 2026. Self-employed filers and their spouses have until June 15, 2026, but any balance owing is still due April 30. File late with a balance owing and the penalty is 5% of the unpaid amount plus 1% for each full month the return is overdue, up to 12 months. Repeat late filers penalized in a recent prior year face 10% plus 2% per month for up to 20 months.13Canada Revenue Agency. Interest and Penalties on Late Taxes – Personal Income Tax
Compound daily interest also accrues on unpaid balances. The CRA’s prescribed rate for overdue taxes in 2026 is 7%.14Canada.ca. Interest Rates for the Third Calendar Quarter Interest runs on the original tax and on accumulated penalties, so a late balance grows quickly.
When Yukon Rates Apply to You
Your province or territory of residence on December 31 sets the rates that apply to your entire year of Canadian income.15Canada.ca. Your Province or Territory of Residence Move to Yukon on December 30 and keep residential ties there and your full year is taxed at Yukon rates. Residential ties include a home in the territory, a spouse or dependants living there, and a Yukon driver’s licence. When ties exist in more than one jurisdiction, the CRA weighs secondary factors like where personal property sits, social connections, and your mailing address.