Canadian Territories: GST 5%

Need to extract GST from a gross total in Yukon, Northwest Territories, or Nunavut? Use the TaxBackwards.ca reverse GST calculator.

All three Canadian territories apply only the 5% federal Goods and Services Tax (GST), administered by the Canada Revenue Agency. None of the territories levy a territorial sales tax. For every $105.00 paid, $100.00 is the net consideration base and $5.00 is GST. Businesses registered for GST can claim the $5.00 as an Input Tax Credit.

Territory Tax Rates

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How GST Reverse Calculation Works in the Territories

Yukon, Northwest Territories, and Nunavut share the same tax structure — only the 5% federal GST applies. To extract the net pre-tax amount from a gross total, divide by 1.05. To isolate the GST portion, subtract the net from the gross.

Worked example: $105.00 total ÷ 1.05 = $100.00 pre-tax amount. $105.00 − $100.00 = $5.00 GST paid. The $5.00 is ITC-eligible for a GST-registered business.

What Is an Input Tax Credit (ITC)?

If your business is registered for GST with the CRA, the GST you paid on eligible business expenses is recoverable as an Input Tax Credit. The ITC reduces your net tax remittance to the CRA. Use the extracted GST amount from this calculator as your ITC-eligible figure, and verify eligibility against CRA guidelines before filing.

Yukon, NWT & Nunavut GST — Frequently Asked Questions

What is the sales tax rate in Yukon, Northwest Territories, and Nunavut?

All three Canadian territories — Yukon, Northwest Territories, and Nunavut — charge only the 5% federal GST. There is no territorial sales tax of any kind. This makes the territories, along with Alberta, the lowest-tax jurisdictions in Canada for consumer purchases.

How do I reverse-calculate GST in the territories?

Divide the gross total by 1.05 to get the net pre-tax amount. Multiply the net by 0.05 to get the GST portion. Example: $105.00 ÷ 1.05 = $100.00 net; $100.00 × 0.05 = $5.00 GST.

Can businesses in the territories claim GST as an Input Tax Credit?

Yes. If your business is registered for GST with the CRA, GST paid on eligible business expenses is recoverable as an Input Tax Credit (ITC), reducing your net remittance to the CRA. The same federal ITC rules that apply across Canada apply in all three territories.

What is exempt from GST in the territories?

Basic groceries, prescription drugs, most medical devices, residential rent, health and dental services, and most financial services are zero-rated or exempt from GST in the territories, under the same federal CRA rules that apply nationwide.

Do businesses in the territories need to register for GST?

Yes. The standard federal GST registration threshold applies: once taxable revenues exceed $30,000 over any four consecutive calendar quarters, businesses in the territories must register for GST with the CRA, charge 5% on taxable supplies, and file GST returns.

Why do the territories have no territorial sales tax?

The territories rely heavily on federal transfer payments (Territorial Formula Financing) for public services rather than self-generated tax revenue. The absence of a territorial sales tax is intentional policy — it helps offset the extremely high cost of living in remote northern communities, particularly in Nunavut and the Northwest Territories.

Is there a Northern Residents Deduction available in the territories?

Yes. Residents of prescribed northern zones — which include all three territories — may claim the Northern Residents Deduction on their federal income tax return. The deduction is up to $22 per day for living in a prescribed northern zone and reduces taxable income. It is separate from GST and applies to income tax, not sales tax.

Do self-employed people in the territories pay GST?

Yes. Self-employed individuals in the territories follow the same federal GST rules as anywhere in Canada. Once taxable revenues exceed $30,000 over any four consecutive calendar quarters, they must register for GST, charge 5% on taxable supplies, and can claim ITCs on eligible business expenses.

Is GST charged on used car purchases in the territories?

When buying from a dealer in the territories, 5% GST applies. When buying from a private seller, GST does not apply. Since there is no territorial sales tax, the territories are the lowest-tax jurisdictions in Canada for vehicle purchases — only 5% GST on dealer sales, nothing on private sales.

Yukon (YT)

Yukon — capital Whitehorse — has never enacted a territorial sales tax. Only the 5% federal GST applies to most purchases, administered entirely by the Canada Revenue Agency. With a population of roughly 44,000, Yukon has the smallest population of the three territories. Its economy is driven by mining, tourism, and public-sector employment, and the absence of a territorial sales tax keeps the total consumption tax rate at the federal minimum.

Northwest Territories (NT)

The Northwest Territories — capital Yellowknife — levies no territorial sales tax. The sole consumption tax on most goods and services is the 5% federal GST. The NWT has a population of approximately 45,000 spread across a vast northern landmass. Diamond mining, oil and gas, and government services form the core of the territorial economy, and businesses need only register and file with the CRA — there is no separate territorial tax authority.

Nunavut (NU)

Nunavut — capital Iqaluit — has no territorial sales tax. Like Yukon and the Northwest Territories, only the 5% federal GST applies. Created in 1999 as Canada's newest territory, Nunavut has a population of roughly 40,000, the majority of whom are Inuit. The economy relies on mining, federal transfers, and public-sector employment, and the single-rate GST structure means no split filing between federal and territorial authorities.

Territories rate history →

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Calculations are arithmetic estimations only and do not constitute formal tax or corporate auditing advice. All figures must be verified against current CRA guidelines before filing.