Canadian province, Nunavut’s Finance Minister Lorne Kusugak delivered the province’s 2025-26 budget on 24 February 2025.
The key aspect of the 2025-26 budget is it includes no increases to corporate or income taxes. However, the federal carbon tax rate and property tax have been increased.
Carbon tax
According to the budget documents, the price of carbon in Canada is set to rise from CAD 80 to CAD 95 per tonne on 1 April 2025. In October 2023, the federal government issued a three-year exemption for heating fuel, significantly reducing the amount of carbon tax collected in Nunavut. As a result, the Nunavut Carbon Credit—a quarterly rebate issued to Nunavummiut through the Canada Revenue Agency (CRA)—has been reduced from CAD 308 per person per year to CAD 100. The rebate on the federal carbon tax for heating fuel deliveries will continue at the source until 31 March 2027.
Property tax
Property tax mill rates for the general taxation area (outside the City of Iqaluit) will rise by 10% in 2025. Property tax mill rates for residential and commercial properties decreased by 10% in 2024, partly to soften the increase in property values determined under the 2024 General Assessment, a comprehensive revaluation of the territory’s taxable property value that takes place every 10 years.
