2023 Northwest Territories Income Tax Calculator
Plug in a few numbers and we’ll give you visibility into your tax bracket, marginal tax rate, average tax rate, and payroll tax deductions, along with an estimate of your tax refunds and taxes owed in 2023.
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Northwest Territories (NWT) tax brackets
Your taxable income places you in the following tax brackets.
| Canadian federal tax bracket | Canadian federal tax rate |
|---|---|
| $53,359 or less | 15.00% |
| $53,359 - $106,717 | 20.50% |
| $106,717 - $165,430 | 26.00% |
| $165,430 - $235,675 | 29.00% |
| More than $235,675 | 33.00% |
| Northwest Territories tax bracket | Northwest Territories tax rate |
|---|---|
| first $48,326 | 5.90% |
| over $48,326 up to $96,655 | 8.60% |
| over $96,655 up to $157,139 | 12.20% |
| over $157,139 | 14.05% |
To calculate your net income in Northwest Territories (NWT), Canada, follow the step-by-step process given below.
Determine taxable income by deducting any pre-tax contributions to benefits Calculate your annual income by adding up the monthly income. Your taxable income is gross income less tax deductions. Gross income includes all forms of income earned during the year. From your gross income, deduct the amounts you are allowed to deduct. You can check the Canada Revenue Agency CRA’s website or the Northwest Territories (NWT) Government’s website to find out about the tax deductions available in the region that you could be eligible for. After subtracting the tax deduction amounts from your gross income, you’ll arrive at your taxable income.
Withhold all applicable taxes (federal and provincial) If you are a salaried employee, your employer will be withholding income tax and remitting it to the CRA. Self-employed and employed individuals can calculate their tax amount using the NT tax calculator. After the federal and Northwest Territories (NWT) tax is withheld from your income, you’ll arrive at your net income.
Deduct any post-tax contributions to benefits Post-tax deductions are wage garnishments, union dues, insurance payments, or other such amounts withheld from your paycheck after the withholding of taxes. The expenses withheld from your paycheck as post-tax deductions are usually the expenditures you agree to pay the employer.
Garnish wages, if necessary A court order can oblige your employer to remit a portion of your salary directly to the government. This is known as the garnishment of wages. Garnished wages are a part of taxable income; therefore you must report them on your tax return.
The result is net income After paying taxes, you arrive at your net income.
Explore other provincial or territorial tax calculators
FAQs
NWT tax is due on April 30 for salaried employees and June 15 for self-employed taxpayers.
In Northwest Territories (NWT), the tax rate is 5.9% on the first $48,326 of taxable income, plus 8.6% on the next $48,329 plus 12.2% on the next $60,484, plus 14.05% on the amount over $157,139.
To calculate tax in the Northwest Territories (NWT), you can use a NT tax calculator or get a tax expert to calculate taxes for you. You can also find out the Northwest Territories (NWT) tax rate that applies to your income provided on the CRA’s website and use it to calculate your tax liability.
The tax deducted from your paycheck in Northwest Territories (NWT) depends on your taxable income and the Northwest Territories (NWT) tax rates. For the first $48,326 of taxable income, the tax rate will be 5.9%. Plus 8.6% on the next $48,329. Plus 12.2% on the next $60,484. Plus 14.05% on the amount over $157,139.
The Northwest carbon tax is collected from greenhouse gas emitters in the Northwest Territories (NWT). To offset the cost of the Northwest Territories (NWT) Carbon Tax, the government pays a tax-free amount known as Cost-of-Living Offset to the individuals and families in Northwest Territories (NWT).
Ideally, you should keep a tax record for 6 years. The CRA allows taxpayers to claim tax refunds on tax returns even after 6 years but not later.
NWT Tax refunds can take up to 2 weeks if you file taxes online, and up to 8 weeks if you file by mail.
To calculate annual Northwest Territories (NWT) income, you can use a tax calculator NT. Or you can calculate your taxes and net income manually with the help of the Northwest Territories (NWT) tax rate table provided on the CRA’s website.
You can mail tax returns to Winnipeg Tax Centre Post Office Box 14001, Station Main Winnipeg MB R3C 3M3
Capital gains tax (federal and provincial combined) in Northwest Territories (NWT) is 10.45% on the first $48,326. 11.80% on the income over $48,326 up to $53,359. 14.55% on income over $53,359 up to $96,655. 16.35% on income over $96,655 up to $106,717. 19.10% on income over $106,717 up to $157,139. 20.03% on income over $157,139 up to $165,430. 21.69% on income over $165,430 up to $235,675. 23.53% on income over $235,675.
Withholding tax in Northwest Territories (NWT) depends on your total taxable income. The tax rate for the first $48,326 of taxable income is 5.9%. Plus 8.6% on the next $48,329. Plus 12.2% on the next $60,484. Plus 14.05% on the amount over $157,139.
The marginal tax rate (federal and provincial combined) is 20.90% for the first $48,326. The marginal tax rate is 23.60% on the income over $48,326 up to $53,359. The marginal tax rate is 29.10% on income over $53,359 up to $96,655. The marginal tax rate is 32.70% on income over $96,655 up to $106,717. The marginal tax rate is 38.20% on income over $106,717 up to $157,139. The marginal tax rate is 40.05% on income over $157,139 up to $165,430. The marginal tax rate is 43.05% on income over $165,430 up to $235,675. The marginal tax rate is 47.05% on income over $235,675.
There are 4 Northwest Territories (NWT) tax brackets. The tax rate for the first $48,326 of taxable income is 5.9%. Plus 8.6% on the next $48,329. Plus 12.2% on the next $60,484. Plus 14.05% on the amount over $157,139.
You might be eligible for the principal residence tax exemption if you are selling the house you live in. However, if you are selling a secondary house or a rental property, you need to report on Schedule 3, of Capital Gains Taxes.
Federal tax credits available to the residents of Northwest Territories (NWT) are Tuition and Education Amounts, Disability Amounts, Caregiver Amounts, and several others.
To pay taxes online, you can use the CRA’s ‘My Payment’ service or do Wealthsimple tax signup.
Tax on split income TOSI is for individuals born after the year 2003 who earn a certain type of income. It also applies to other individuals who earn related business income.
RRSP deductions can reduce your taxable income and the payable taxes. You can consult a tax expert or use an NT tax calculator to find out how you can benefit from RRSP deductions.