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- Northwest Territories
On February 6, 2025, Minister of Finance Caroline Wawzonek presented the fiscal 2025–2026 Northwest Territories budget. This year’s budget aims to maintain fiscal stability while emphasizing efficiency, innovation, and sustainability.
This year’s budget contains no new tax announcements. However, it provides for a few tax increases, as noted below.
The Northwest Territories carbon tax rate will increase by $15 to $95 per carbon-equivalent tonne of greenhouse gas emissions, effective April 1, 2025. Carbon tax exemptions are in place for aviation fuel and diesel fuel used to generate electricity for community distribution.
The budget reminded taxpayers that the carbon tax on diesel heating fuel deliveries is now rebated at the point-of-sale for everyone except large emitters. This change took effect on April 1, 2024, and is consistent with the federal government’s measure to suspend the carbon tax on diesel heating fuel for three years under its carbon pricing backstop system. This rebate is scheduled to remain in place until March 31, 2027.
Consistent with previous years, property tax rates will be increased based on the level of inflation.
Further information on the 2025–2026 Northwest Territories budget is available on the territories’ website.
If you have any questions about how these proposed changes might impact your organization, please do not hesitate to contact the Ryan TaxDirect® line at taxdirect@ryan.com or 1.800.667.1600.