Understanding net salary in Yukon 2026
While Yukon uses the federal tax administration system (CRA), its territorial tax calculation is distinct. A key factor for residents is the Northern Residents Deduction, but this is typically claimed at tax filing time (resulting in a refund) rather than on every paycheque, unless you have filed a waiver with the CRA.
This page provides an educational estimate: it explains the mechanisms and gives an order of magnitude.
The calculation logic can be summarized as follows:
Annual net salary = Annual gross salary
− Federal tax
− Provincial/territorial tax
− Pension contributions (CPP/QPP)
− Employment Insurance (EI)
− QPIP (if Quebec)
In Yukon, despite its territorial status, income tax is collected by the CRA, while Yukon authorities are responsible only for defining territorial tax rules.
⚠️ Keep in mind: your actual pay stub may differ depending on your credits (TD1),
taxable benefits, RRSP contributions, bonuses,
commissions, overtime, union dues, and other specifics.
2026 tax tablesCRA
Rates + K constant
The Yukon tax system in 2026 is designed to mirror the federal government's tax brackets almost perfectly, making the net salary calculation very harmonious. The territorial Basic Personal Amount corresponds exactly to the federal one, at $16,452.
The first tax rate is particularly low, set at 6.40% on income up to $58,523. Furthermore, Yukon residents benefit from the 'Northern Residents Deduction', which significantly reduces net taxable income.
One of the great advantages of the Yukon lies in its upper brackets. While the rate climbs to 9% (up to $117,045) and then to 10.9% (up to $181,440), the absolute maximum rate is only 15% and applies only to astronomical incomes exceeding $500,000.
On your pay stub, you will see the usual deductions for the CPP and EI. There is no territorial sales tax in the Yukon, and with such lenient income tax rates, the territory attracts many professionals and entrepreneurs.
Concrete example: If you earn $80,000 in Whitehorse in 2026, your territorial tax will be calculated in the 9% bracket, while the federal will be at 20.5%. After taxes and contributions, your net salary will be approximately $61,500.
| Income bracket |
Rate |
K |
| 58 523 $ or less |
14 % |
0 |
| 58 523.01 $ to 117 045 $ |
20.50 % |
3 804 |
| 117 045.01 $ to 181 440 $ |
26 % |
10 241 |
| 181 440.01 $ to 258 482 $ |
29 % |
15 685 |
| 258 482.01 $ or more |
33 % |
26 024 |
| Income bracket |
Rate |
K |
| 54 345 $ or less |
14 % |
0 |
| 54 345.01 $ to 108 680 $ |
19 % |
2717 |
| 108 680.01 $ to 132 245 $ |
24 % |
8 151 |
| 132 245.01 $ or more |
25.75 % |
10 465 |
Based on 2026 Yukon territorial tax brackets and the basic personal amount, which is harmonized with the federal amount to simplify calculations.
Federal Basic Personal Amount (BPA) - minimum vs maximum
In Yukon, the federal BPA reduces federal tax payable through a non-refundable credit whose value is derived from the lowest federal tax bracket.
For 2026, the BPA has a maximum of 16,452 $ and a minimum of 14,829 $, with a gradual reduction between 181,440 $ and 258,482 $. Yukon’s territorial basic amount is also 16,452 $, matching the federal maximum.
-
Maximum BPA: generally applies if your net income is below the phase-out threshold. It
provides the largest credit.
-
Minimum BPA: applies to high incomes (above the upper threshold). Even at very high income,
you keep at least this credit.
-
Between the two: the BPA is reduced progressively from the maximum toward the minimum
according to a formula.
Not to be confused: each province also has its own basic personal amount, which reduces
provincial tax separately from the federal BPA.
Additional 2026 information - thresholds and rates
Yukon's first tax bracket is extremely low, meaning your first $50k+ of income is taxed very lightly compared to the 10-15% range seen in provinces.
CPP / QPP - base plan
-
Applicable range:
Pensionable earnings, generally between the annual exemption of 3 500 $ and the maximum
pensionable earnings
(YMPE) of 74 600 $.
-
Employee rate:
CPP 5.95% (outside Quebec) ·
QPP 6.30% (Quebec).
CPP2 / QPP - additional plan
-
Applicable range:
Earnings above the YMPE (74 600 $) up to the additional maximum
(AYMPE) of 85 000 $.
-
Employee rate:
4.00%.
Dynamic display: if annual salary is ≤ 74 600 $, this contribution does not apply.
EI (Employment Insurance)
-
Maximum insurable earnings:
68 900 $.
-
Employee rate:
1.63% (outside Quebec) · 1.30% (Quebec).
QPIP - parental insurance (Quebec)
-
Maximum insurable earnings:
103 000 $.
-
Employee rate:
0.430%.
This contribution applies only if the province is Quebec.
Federal Basic Personal Amount (BPA)
-
Maximum: 16 452 $ ·
Minimum: 14 829 $.
-
Non-refundable credit, phased down between 181 440 $ and 258 482 $ of annual income.
FAQ - Net Pay / Take-Home Pay in Yukon (YT) 2026
How does the Yukon carbon price rebate work?
Unlike the federal system, which provides a fixed credit, Yukon returns carbon tax revenues directly to residents through the Yukon Carbon Price Rebate. While it does not appear on your paycheque, it is paid quarterly throughout the year, increasing your overall net income.
Why are Yukon's tax brackets identical to the federal ones?
Yukon deliberately aligned its tax brackets with those of the CRA. This greatly simplifies payroll for employers. However, the tax rates applied by Yukon are much lower, ranging from 6.4% to a maximum of 15%.
With the high cost of living, is the Northern Residents Deduction applied automatically?
No. For your employer to reduce the tax withheld from your pay to reflect the Northern Residents Deduction, you must complete and submit the TD1-WS form.
