Northwest Territories/Nunavut payroll tax

Payroll Tax in the Northwest Territories (NT) and Nunavut (NU) is levied as a 2% deduction from the gross remuneration of employees. These payroll taxes apply to all employees who work, perform duties, or provide services in NT or NU, regardless of the province or territory of residence of the employee or employer or the employee's age. There is an exemption available to employees who normally work outside the territory.

For additional information, see the websites for Northwest Territories Department of Finance and Nunavut Department of Finance.

Although employees working in these jurisdictions have both Federal and Territorial Tax deducted from their income, NT/NU’s Payroll Taxes deducted are not remitted to CRA as part of their Territorial Tax. Payroll Taxes are directed to the applicable territorial Finance department. For that reason, T4 slips do not report these 2% Payroll Tax deductions. Employees can validate the Payroll Tax deductions made by their employers by reviewing their pay statements.