Yukon Income Tax Calculator
Easily estimate take home pay after income tax so you can have an idea of what to possibly expect when planning your budget
Last reviewed on January 29, 2023
Results
Income Before Tax
Take Home Pay
Total Tax
Average Tax Rate
$ = Canadian Dollar
Income Before Tax
Federal Income Tax
Federal Non-Refundable Tax Credits
Quebec Federal Tax Abatement
Territorial Income Tax
Territorial Non-Refundable Tax Credits
Territorial Surtax
Territorial Non-Refundable "Tax Reduction"
Canada Pension Plan (CPP)
Employment Insurance (EI)
Quebec Pension Plan (QPP)
Quebec Parental Insurance Plan (QPIP)
Quebec Health Services Fund
Ontario Health Premium
Total Tax
Take Home Pay
Total Deductions
Average Tax Rate
Table of Contents
Summary
Enter your employment income into the income tax calculator above to estimate how taxes in Yukon, Canada may affect your finances. You'll then get your estimated take home pay, an estimated breakdown of your potential tax liability, and a quick summary down here so you can have a better idea of what to possibly expect when planning your budget.
To learn more about Yukon, its income tax, and tax brackets, so that you can get a deeper understanding of how your budget and finances may be affected, scroll down to the detail section below!
Frequently Asked Questions
What is the income tax rate in Yukon?
The territorial income tax rate in Yukon is progressive and ranges from 6.4% to 15% while federal income tax rates range from 15% to 33% depending on your income. This income tax calculator can help estimate your average income tax rate and your take home pay.
How many income tax brackets are there in Yukon?
The territorial income tax system in Yukon has five different tax brackets. For more details, check out our detail section.
How to Calculate Yukon Net Income
Within the enchanting embrace of Canada's rugged wilderness lies a land of untamed beauty, where towering peaks caress the clouds and crystal-clear lakes shimmer like jewels amidst the breathtaking landscape. Welcome to the mesmerizing Yukon, a territory that effortlessly weaves together nature's grandeur and the warmth of its resilient people.
Living in the Yukon also comes with some challenges, such as harsh winters, remote communities, and high costs of living. That’s why it’s important to understand how the Yukon income tax system works and how it affects your net income.
To begin, your net income is simply your gross income minus a set of taxes based on income such as territorial income tax, federal income tax, and social security taxes.
The Yukon territorial income tax system operates on the principle of progressivity, a concept that embraces the notion of dividing income into various brackets. Each bracket is subject to different tax rates, ensuring that lower-income earners are taxed at lower rates while higher-income individuals contribute more proportionately to the revenue pool. Within this framework, tax rates in the Yukon range from 6.4% to 15%, reflecting a balance between fiscal responsibility and supporting the diverse needs of its residents.
To delve further into the mechanics of the Yukon's income tax system, let's take a closer look at the tax brackets that define this progressive structure. The specific details of these brackets, which determine the portion of income taxed at different rates, provide the necessary framework for calculating your net income.
The Yukon Income Tax Brackets
For 2022 tax year
| Taxable Income (CAD) | Tax Rate |
|---|---|
| First 50,197 | 6.4% |
| From 50,197 to 100,392 | 9% |
| From 100,392 to 155,625 | 10.9% |
| From 155,625 to 500,000 | 12.8% |
| From 500,000 onwards | 15% |
In terms of tax relief, the Yukon, along with the rest of Canada, focus on tax credits as a way of providing a means of offsetting the final tax liability. However, it is important to note that most tax credits are non-refundable. This means that if the cumulative value of these credits exceeds your income tax, you will not receive a refund for the difference. In such cases, your income tax liability would simply be reduced to zero.
These tax credits, offered in various forms, encompass a multitude of relief measures that cater to specific circumstances. Usually expressed in "amount" figures, these credits are not directly subtracted from income tax but instead undergo a unique calculation method. First, they are multiplied against the rate of the lowest tax bracket, adding a twist to the traditional concept of deductions. This distinctive mechanism ensures that these credits act as effective tools for reducing the overall tax burden, offering individuals and families financial relief in line with their specific needs.
The most common tax credit is the non-refundable basic personal amount. In the Yukon, this amount ranges from $12,719 to $14,398 for the tax year 2022, depending on your income level. Mirroring the federal level, this basic personal amount provides individuals with a degree of tax relief, recognizing the inherent costs of living and offering a measure of financial support.
In a unique distinction, the Yukon stands as the only territory that extends the application of the employment amount tax credit to the territorial level. Originating from the federal level, this credit provides further relief to individuals and families, recognizing the contributions made towards employment-related expenses. By incorporating this credit within their income tax framework, the Yukon reaffirms its commitment to supporting its workforce and fostering economic growth.
As residents of the Canadian landscape, individuals in the Yukon are not only subject to territorial income tax but are also part of a larger fiscal tapestry governed by the federal government. Known as federal income tax, this parallel system mirrors the principles and structures of its territorial counterpart. For more details, please refer to the section devoted to this topic below.
Social Security
Another financial responsibility emerges in the form of social security taxes.
This includes the Canada Pension Plan (CPP) and Employment Insurance (EI). These two programs operate through contributions made by individuals, with rates set at 5.7% and 1.58%, respectively. Maximum limits apply to the income that is subject to contributions for both the CPP and EI.
Furthermore, to help alleviate the financial burden of social security contributions, tax credits are available on both territorial and federal levels.
Sources:
More From Investomatica:
For sales tax, please visit our Yukon Sales Tax Rates and Calculator page.
Calculate Your Income Tax in Other Provinces and Territories
Calculate Your Income Tax in Other Parts of North America
Disclaimer
- The content shown on this page is strictly for educational purposes only. It does not represent advice nor is it a substitute for a professional advisor.
- Estimated results are just estimates. They are not a guarantee of future results.
- Tax situations vary widely and calculations can get very complex. This income tax calculator only provides a rough estimate according to the most common scenarios for standard employment income that comes from an employer. If you are self-employed, your taxes might differ.
- There may be additional deductions, credits, exemptions, allowances, reliefs, etc depending on many factors. Some factors are about your family such as the number of dependents, children, relatives, parents, etc. Other factors may include mortgage payments, property depreciation, charitible donations, additional voluntary retirement contributions, etc. Whether or not you are handicapped and/or disabled may also sometimes be an additional factor.
- Depending on region and jurisdiction, salary bonuses may be treated and taxed differently from standard salary.
- Calculators from other sites may show slightly different numbers due to different deductions/credits being included or they are based on data from a different year.
- Generally, we review changes once a year since tax codes usually change once a year. If you notice a major miscalculation or error with our income tax calculator (most likely caused by a typo somewhere), feel free to direct message us on twitter and let us know. However, if you have specific questions about your own personal situation, please consult a licensed tax professional.
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