Executive summary
On 3 March 2022, Yukon Premier and Finance Minister Sandy Silver tabled the territory’s fiscal 2022/23 budget. The budget contains no new taxes and no tax increases.
The Minister anticipates a surplus of CA$25.5 million1 for 2021/22 and projects a surplus of $39.5 million for 2022/23 and surpluses for each of the next two years ($73.5 million for 2023/24 and $63.3 million for 2024/25).
The following is a brief summary of the key tax measures.
Detailed discussion
Business tax measures
Corporate income tax rates
No changes are proposed to corporate income tax rates or the $500,000 small-business limit.
Yukon’s 2022 corporate income tax rates are summarized in Table A.
Table A – 2022 corporate income tax rates*
| 2022 | ||
| Yukon | Federal and Yukon combined | |
| Small-business tax rate** | 0% | 9% |
| General manufacturing and processing tax rate** | 2.50% | 17.50% |
| General corporate tax rate** | 12% | 27% |
* Rates represent calendar-year rates.
** The 2021 federal budget proposed to temporarily reduce the federal corporate income tax rate for qualifying zero-emission technology manufacturers by 50% (i.e., to 7.5% for eligible income otherwise subject to the 15% general corporate income tax rate or 4.5% for eligible income otherwise subject to the 9% small-business corporate income tax rate), applicable for taxation years beginning after 2021. The reduced tax rates are proposed to be gradually phased out for taxation years beginning in 2029 and fully phased out for taxation years beginning after 2031.
Personal tax
Personal income tax rates
The budget does not include any changes to personal income tax rates.
The 2022 Yukon personal income tax rates are summarized in Table B.
Table B – 2022 Yukon personal income tax rates
| First bracket rate | Second bracket rate | Third bracket rate | Fourth bracket rate | Fifth bracket rate |
| $0 to $50,197 | $50,198 to $100,392 | $100,393 to $155,625 | $155,626 to $500,000 | Above $500,000 |
| 6.40% | 9% | 10.90% | 12.80% | 15% |
For taxable income in excess of $155,625, the 2022 combined federal-Yukon personal income tax rates are outlined in Table C.
Table C – Combined 2022 federal and Yukon personal income tax rates
| Bracket | Ordinary income* | Eligible dividends | Non-eligible dividends |
| $155,626 to $221,708** | 42.34% | 21.11% | 37.54% |
| $221,709 to $500,000 | 45.80% | 25.89% | 41.52% |
| Above $500,000 | 48% | 28.92% | 44.05% |
*The rate on capital gains is one-half the ordinary income tax rate.
** The federal and territorial basic personal amounts comprise two elements: the base amount ($12,719 for 2022) and an additional amount ($1,679 for 2022). The additional amount is reduced for individuals with net income in excess of $155,625 and is fully eliminated for individuals with net income in excess of $221,708. Consequently, the additional amount is clawed back on net income in excess of $155,625 until the additional tax credit ($252 federally and $107 in Yukon) is eliminated; this results in additional federal and territorial income tax (e.g., 0.38% and 0.16%, respectively, on ordinary income) on taxable income between $155,626 and $221,708.
For additional information with respect to this Alert, please contact the following:
Ernst & Young LLP (Canada), Toronto
- Linda Tang
- Mark Kaplan
- Phil Halvorson
- Terri McDowell
- Trevor O’Brien
Ernst & Young LLP (Canada), Quebec and Atlantic Canada
- Albert Anelli
- Angelo Nikolakakis
- Brian Mustard
- Nicolas Legault
- Nik Diksic
- Philippe-Antoine Morin
Ernst & Young LLP (Canada), Prairies
- Mark Coleman
- Liza Mathew
Ernst & Young LLP (Canada), Vancouver
- Eric Bretsen
For a full listing of contacts and email addresses, please click on the Tax News Update: Global Edition (GTNU) version of this Alert.
