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Nunavut has Canada's lowest income tax rates — 4% flat on most income — plus no territorial employer health tax. Rippling handles the full compliance stack for this unique territory.
Nunavut is Canada's newest and largest territory (by area), created in 1999. Iqaluit is the capital. Nunavut's economy is dominated by government, health services, and resource extraction. Employment in Nunavut for private sector US companies is rare but possible for specialized technical roles. Nunavut has the lowest income tax rates in Canada, which combined with the federal Northern Residents Deduction makes it uniquely tax-advantaged for high-earning remote workers.
Rippling's Nunavut payroll module provides federal + Nunavut income tax withholding (Canada's lowest rates), CPP, EI, WSCC tracking, Nunavut Employment Standards Act compliance, and T4 generation.
| Contribution | Rate | Notes |
|---|---|---|
| CPP (Employer) | 5.95% + CPP2 | Matches employee. |
| EI (Employer) | 2.32% | 1.4x employee rate. |
| WSCC | Variable | Same WSCC as NWT. Rate by industry classification. |
No Nunavut territorial employer health tax. Nunavut has the absolute lowest income tax rates in Canada.
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| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | 15%–33% | Per TD1 elections. |
| Nunavut Income Tax | 4%–11.5% | The lowest income tax rate in Canada. Flat 4% on income up to $53,268. |
| CPP | 5.95% + CPP2 | Standard. |
| EI | 1.66% | Standard. |
| Nunavut Income (2024) | NU Rate |
|---|---|
| Up to $53,268 | 4% |
| $53,269–$106,537 | 7% |
| $106,538–$173,205 | 9% |
| Over $173,205 | 11.5% |
Absolute lowest income tax rates in Canada. Combined federal + Nunavut top rate: approximately 44.5%.
Nunavut Employment Standards Act notice: similar provisions to NWT. No separate severance pay provision.
Statutory: CPP, EI, WSCC (Workers' Safety and Compensation Commission, covers NWT and Nunavut), Nunavut Employment Standards Act. Nunavut has the highest federal transfer payments per capita of any territory and a unique Inuit cultural and language context.
Market standard: Extended health/dental, group life, LTD, Northern allowance. Iqaluit is the capital. Most professional employment in Nunavut is government and health sector.
Nunavut has the lowest income tax rates in Canada: 4% on income up to $53,268, scaling to 11.5% on income over $173,205. Combined with federal tax, the Nunavut top combined rate is approximately 44.5% — the lowest in the country. This is relevant for remote workers or specialized professionals employed in Nunavut by remote-first companies.
Yes. Rippling handles Nunavut payroll including federal and Nunavut income tax withholding, CPP, EI, and WSCC tracking. Nunavut payroll is uncommon for most US companies but fully configurable in Rippling. thePeopleStack can advise on Nunavut payroll compliance for specialized roles.
The federal Northern Residents Deduction applies to Nunavut residents (in the prescribed northern zone). Nunavut residents receive the maximum NRD benefit. This is a personal tax deduction claimed by the employee on their T1 return — not an employer withholding obligation. Highlight as a benefit when recruiting for Nunavut roles.
Inuktitut is an official language in Nunavut alongside English and French. For most private sector employers, Inuktitut language requirements are minimal compared to Quebec's French language obligations. However, for companies doing business with the Government of Nunavut or in Inuit-majority communities, Inuktitut language considerations may apply.