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Northwest Territories: minimum wage, income tax and cost of living

Northwest Territories in numbers: minimum wage, provincial income tax, sales tax and rent, from official sources, and what they mean for a budget.

Updated: October 11, 2026

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 TerritoriesSource
General minimum wage$17.20 an hourGovernment of the Northwest Territories news release: NWT minimum wage set to increase Sept 1, 2026
Provincial income tax5.9 % to 14.05 %Canada Revenue Agency: Tax rates and income brackets for individuals, current year (2026)
Sales tax5 % GSTCanada 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.

Work out your take-home pay

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

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