On 5 February 2026, Northwest Territories Finance Minister Caroline Wawzonek tabled the territory's fiscal 2026 budget. The budget contains no new taxes and no income tax increases.

The minister anticipates an operating surplus of CA$9m for 2025-26 and projects an operating surplus of CA$20m for 2026-27, as well as operating surpluses for each of the next three years.

Following is a brief summary of the key tax measures.

Corporate income tax rates

No changes are proposed to the corporate income tax rates or the CA$500k small-business limit.

The 2026 Northwest Territories corporate income tax rates are summarized in Table A.

Table A — 2026 Northwest Territories corporate income tax rates¹

¹ The rates represent calendar-year-end rates unless otherwise indicated.

² The federal corporate income tax rates for manufacturers of qualifying zero-emission technology are reduced to 7.5% for eligible income otherwise subject to the 15% federal general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% federal small-business corporate income tax rate. These reductions are not reflected in the combined federal and Northwest Territories rates above.

³ An additional tax applies to banks and life insurers at a rate of 1.5% on taxable income (subject to a CA$100m exemption to be shared by group members).

Personal income tax rates

The budget does not include any changes to personal income tax rates.

The 2026 Northwest Territories personal income tax rates are summarized in Table B.

Table B — 2026 Northwest Territories personal income tax rates

For taxable income in excess of CA$172,346, the 2026 combined federal-Northwest Territories personal income tax rates are outlined in Table C.

Table C — Combined 2026 federal and Northwest Territories personal income tax rates

¹ The rate on capital gains is one-half the ordinary income tax rate.

² The federal basic personal amount comprises two elements: the base amount (CA$14,829 for 2026) and an additional amount (CA$1,623 for 2026). The additional amount is reduced for individuals with net income in excess of CA$181,440 and is fully eliminated for individuals with net income in excess of CA$258,482. Consequently, the additional amount is clawed back on net income in excess of CA$181,440 until the additional tax credit of CA$227 is eliminated; this results in additional federal income tax (e.g., 0.29% on ordinary income) on net income between CA$181,441 and CA$258,482.

Property tax

In keeping with the existing indexing policy, property mill rates will be adjusted for inflation. However, as previously announced, the class 4 property tax mill rate will remain at the 2025-26 level to support diamond mines.

Carbon pricing

In line with the federal benchmark, the Northwest Territories industrial carbon tax rate will increase CA$15 per carbon-equivalent ton of greenhouse gas emissions to CA$110 as of 1 April 2026.

For up-to-date information on the federal, provincial and territorial budgets, visit ey.com/ca/Budget.