How Yukon income tax works
| Taxable income 2026 | Yukon rate |
|---|---|
| Up to $58,523 | 6.4% |
| $58,523 – $117,045 | 9% |
| $117,045 – $181,440 | 10.9% |
| $181,440 – $500,000 | 12.8% |
| Over $500,000 | 15% |
Credits at 6.4% cover the basic personal amount (equal to the federal $16,452, reduced for incomes above $181,440), CPP, EI and the Yukon employment amount.
Worked example: $60,000 in Yukon
Employment income $60,000, Yukon, 2026
Yukon tax is $2,437, and take-home pay is $47,885.
- Per month
- $3,990
- Every two weeks
- $1,842
- Marginal rate
- 35.43%tax + CPP/EI on next $
| Item | Year | Month | Bi-weekly | Week |
|---|---|---|---|---|
| Gross income | $60,000.00 | $5,000.00 | $2,307.69 | $1,153.85 |
| Federal tax | −$5,338.30 | −$444.86 | −$205.32 | −$102.66 |
| Yukon tax | −$2,436.98 | −$203.08 | −$93.73 | −$46.87 |
| CPP | −$3,361.75 | −$280.15 | −$129.30 | −$64.65 |
| EI premiums | −$978.00 | −$81.50 | −$37.62 | −$18.81 |
| Take-home pay | $47,884.97 | $3,990.41 | $1,841.73 | $920.86 |
At $100,000 Yukoners keep $74,998, with a combined marginal rate of about 29.5%.
What changed for 2026
Yukon’s brackets moved with the federal indexation of 2.0%. Because Yukon matches the federal basic personal amount, it also rose to $16,452.
Tips
- The northern residents deduction (claimed on form T2222) reduces taxable income for people living in the territories; it is not included in this estimate and can be worth thousands.
- Travel benefits from employers for northern residents may also be deductible.