Nunavut Dividend Tax Credit Rates 2026

Nunavut's 2026 territorial DTC for eligible dividends is 5.51% of the grossed-up amount. While this is one of the lower DTC percentages nationally, Nunavut's extremely low territorial tax rates (top rate just 11.5%) mean the net effective rate on eligible dividends is still among the lowest in Canada. For a $10,000 eligible dividend (grossed up to $13,800), the Nunavut DTC is approximately $760 and the federal DTC is $2,073.

For non-eligible dividends, Nunavut provides a territorial DTC of 2.61% of the grossed-up amount. A $10,000 non-eligible dividend (grossed up to $11,500) receives a Nunavut DTC of approximately $300 and a federal DTC of $1,038. The combination of a moderate non-eligible DTC and Nunavut's very low territorial rates keeps the effective rate on non-eligible dividends competitive with most provinces.

Nunavut's combined top marginal rate of approximately 44.5% — the lowest in Canada — means that even at the highest income levels, the effective rate on all types of investment income is lower than elsewhere. At lower income levels, the combined DTC can push the effective rate on eligible dividends into negative territory, meaning dividends actually reduce your tax bill. For retirees and investors in Nunavut, this is one of the most tax-efficient environments in the country for dividend income.