Capital Gains Tax in the Northwest Territories
The Northwest Territories taxes income in four brackets, from 5.9% to 14.05%, with the top rate starting at $172,346. A gain added to a salary past $106,009 is taxed provincially at 12.2% or more.
Only the share set by the inclusion rate, 50%, is taxed, at the combined federal and NWT rate. The top combined rate is 47.05%, so the top capital gains rate is 23.53%. The capital gains tax calculator for Canada covers how gains are taxed in every province and territory.
NWT Tax Brackets
There is no separate NWT income tax page on this site, so the territory’s brackets are here:
| Tax Bracket | Rate |
|---|---|
| First $53,003 | 5.90% |
| $53,003 – $106,009 | 8.60% |
| $106,009 – $172,346 | 12.20% |
| Over $172,346 | 14.05% |
The federal tax brackets are added to these to get the combined rates below.
Capital Gains Tax Rates in the Northwest Territories
Combined rate and rate on a capital gain at each taxable income:
| Taxable Income Range | Combined Marginal Rate | Effective Capital Gains Rate |
|---|---|---|
| Up to $53,003 | 19.90% | 9.95% |
| $53,003 – $58,523 | 22.60% | 11.30% |
| $58,523 – $106,009 | 29.10% | 14.55% |
| $106,009 – $117,045 | 32.70% | 16.35% |
| $117,045 – $172,346 | 38.20% | 19.10% |
| $172,346 – $181,440 | 40.05% | 20.02% |
| $181,440 – $258,482 | 43.05% | 21.53% |
| Over $258,482 (top bracket) | 47.05% | 23.53% |
Worked Example: Capital Gains Tax in the Northwest Territories
A Yellowknife mining engineer earning $125,000 sells shares for a $50,000 gain. Taxable income rises by $25,000 to $150,000.
That stays within the NWT’s 12.2% bracket ($106,009 to $172,346) and the federal 26% bracket ($117,045 to $181,440). The federal tax on the gain is $6,500 and the territorial tax $3,050; together, $9,550, or 19.10% of the $50,000 gain.
Past $172,346 the NWT rate would rise to 14.05%. The example uses marginal rates on top of the salary, as explained on the main capital gains page.
How the Northwest Territories Compares
Yukon’s top capital gains rate is 24.00% and Nunavut’s is 22.25%, beside 23.53% in the NWT. The all-jurisdiction table has the provinces.
Northern Residents Deductions
All of the Northwest Territories is in the northern zone, so residents can usually claim the northern residents deductions. They reduce taxable income, which can keep the taxable part of a gain in a lower combined bracket. Taxable northern allowances paid by employers, on the other hand, add to income before a gain is counted.
Related Calculators
- Northern residents deductions: the residency and travel deductions
- Income tax calculator: combined federal and NWT tax on your whole income
- Federal tax brackets: the federal rates in the table above
Sources
The figures and rules on this page come from these sources, last checked against them between September 5, 2026 and September 23, 2026. How we check facts.
- Canada Revenue Agency: Current year tax rates and income brackets (2026) - Personal income tax
- Canada Revenue Agency: Capital Gains – 2025
- Canada Revenue Agency: Payroll Deductions Formulas - 122nd Edition Effective January 1, 2026
- Gouvernement du Québec: Parameters of the Personal Income Tax System for 2026