What it costs to live and work in Northwest Territories: the minimum wage, provincial income tax, sales tax and rent, from official sources, and what they mean for your monthly budget.
| Northwest Territories | Source | |
|---|---|---|
| General minimum wage | $17.20 an hour | Government of the Northwest Territories news release: NWT minimum wage set to increase Sept 1, 2026 |
| Provincial income tax | 5.9 % to 14.05 % | Canada Revenue Agency: Tax rates and income brackets for individuals, current year (2026) |
| Sales tax | 5 % GST | Canada Revenue Agency: GST/HST calculator (and rates) |
| Rent (Median monthly shelter cost of renter households (rent plus utilities paid by the household), all renter households) | $1,450 a month (2021) | Statistics Canada, Census 2021, table 98-10-0253-01: Shelter cost by tenure including presence of mortgage payments and subsidized housing |
The general minimum wage is $17.20 an hour since September 1, 2026, up from $16.95. It is set each year by a formula using the consumer price index and the average hourly wage; the territory will consult again before setting the 2027 rate.
For 2026, the NWT taxes the first $53,003 of taxable income at 5.9 % and income over $172,346 at 14.05 %, across four brackets. The basic personal amount is $18,198.
The Northwest Territories have no territorial sales tax; only the 5 % GST applies.
What income does rent in Northwest Territories take?
A common guideline is to keep housing at or below 30 % of gross income. At $1,450 a month, that means a household income of about $58,000 a year before tax.
Good to know
- All of the NWT is in the prescribed northern zone: qualifying residents can deduct $11 a day, plus $11 a day more if they kept and lived in their own home and nobody else in it claims the basic amount (2025 rates), and claim some travel costs.
- In 2021, renters not in subsidized housing had a median shelter cost of $1,660 a month, the highest of the six regions covered here.
Sources
- Government of the Northwest Territories news release: NWT minimum wage set to increase Sept 1, 2026 (2026-07-31)
- Canada Revenue Agency: Tax rates and income brackets for individuals, current year (2026) (2026-06-25)
- Canada Revenue Agency: GST/HST calculator (and rates) (2025-04-01)
- Statistics Canada, Census 2021, table 98-10-0253-01: Shelter cost by tenure including presence of mortgage payments and subsidized housing (2022-09-21)
- Canada Revenue Agency: T4127 Payroll Deductions Formulas, 122nd edition, effective January 1, 2026 (2025-11-20)
- Canada Revenue Agency: Line 25500, Northern residents deductions (2026-01-20)