Self-Employed Tax Guide — Yukon
Northern tax advantages — $11/day residency deduction, federal bracket mirroring, no PST.
Last reviewed:
Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact CRA. Read our editorial scope →
1. Provincial / territorial income tax brackets — 2025
| Taxable income | Rate |
|---|---|
| $0 – $57,375 | 6.40% |
| $57,375 – $114,750 | 9.00% |
| $114,750 – $177,882 | 10.90% |
| $177,882 – $500,000 | 12.80% |
| Above $500,000 | 15.00% |
Basic Personal Amount: $16,129. Top combined federal+territorial marginal rate: 48.00%.
2. Sales tax — GST
Combined rate 5.00% (GST 5.0%). Only the federal GST applies — no provincial sales tax. Lower compliance burden.
3. CPP / QPP & EI
Standard federal Canada Pension Plan applies (11.9% self-employed on YMPE band; CPP2 above). EI is optional for self-employed via voluntary opt-in.
4. Employer Health Tax
No Employer Health Tax — a real cost advantage for businesses scaling past the first employees compared to ON, BC, MB and NL.
5. Workers' Compensation
Body: YWCHSB. Coverage is typically mandatory for any business with employees and for construction-industry sole proprietors regardless of staff status. Most other self-employed can elect optional personal coverage.
6. Business registration
Body: Corporate Registries (gov.yk.ca). Typical filing cost $50-100, renewal annually. Sole proprietors operating under their own legal name may be exempt from registration.
7. Minimum wage 2025
$17.94/hour (effective Apr 1, 2025).
8. Employment standards highlights
- Vacation: 2 weeks (4%)
- Overtime threshold: Follows federal pattern
- Statutory holidays: Follows federal (11)
9. Provincial credits & programs
- Yukon Small Business Investment Tax Credit (25% non-refundable to investors)
- Yukon Mineral Exploration Tax Credit (25% refundable)
- Yukon Research and Development Tax Credit (15% refundable for CCPCs, +5% for UY collaborations)
- Yukon Manufacturing & Processing Profits Tax Credit
10. Trade licensing
Yukon Apprenticeship Branch follows the Red Seal program. Compulsory certification trades are electrician, plumber, oil burner mechanic and gasfitter. Most other trades are voluntary; the small workforce makes most cross-trade work common.
11. Corporate small-business rate
Provincial SBD rate 0.00% + federal 9% = combined 9.00% on active business income up to the small business limit ($500,000 federal). General corporate combined rate 27.00%.
Why self-employed choose Yukon
Yukon combines a 9% combined small-business rate with the Northern Residents Deduction — a self-employed Whitehorse owner-manager keeps materially more after-tax cash than a comparable Edmonton or Vancouver peer. The 6-month residency rule for the NRD is the only meaningful gating condition.
Calculators (pre-populated with Yukon)
Other provinces & territories
- Ontario — Canada's most populous province — largest market, highest compliance burden.
- British Columbia — Tech hub tax environment — seven brackets, high top rate, strong public services.
- Alberta — Canada's most tax-competitive province — no PST, no EHT, lowest top rate of any province with retail PST regime.
- Saskatchewan — Low SBD rate, simple bracket structure, growing economy.
- Manitoba — Moderate rates, competitive for small employers, frozen BPA.
- New Brunswick — Atlantic opportunity — HST province with a growing tech sector and ACOA support.
- Québec — dual filing (T1 + TP-1), QPP, QPIP, federal abatement
- All jurisdictions →
Last reviewed: