On February 24, 2025, the Honourable Lorne Kusugak, Minister of Finance, presented Nunavut’s budget for 2025–26. Projecting a deficit of approximately $124 million, this year’s budget continues the government’s focus on supporting elders, increasing housing, improving healthcare, investing in education, and diversifying the territory’s economy.
The budget includes no new taxes. However, the government announced that property tax mill rates for all areas outside Iqaluit will increase by 10% for the 2025 taxation year.
In addition, the liquor tax on all alcohol consumed in or imported into the territory that became law in 2023 will be put into force once rates and other administrative matters have been finalized.
The government also reminded taxpayers that the federally mandated price on carbon is set to increase from $80 to $95 per tonne of carbon dioxide equivalent emissions, effective April 1, 2025, and the updated Fuel Tax Act introduced in the Assembly will be reviewed again during the winter session.
Further information on Nunavut’s 2025 budget may be found on the territory's website.
If you have any questions about how the tax changes proposed in this year’s Canadian budgets might impact your organization, please do not hesitate to contact Ryan TaxDirect® at taxdirect@ryan.com or 1.800.667.1600.