PIT Credits
Cost of Living Tax Credit
The Cost of Living Tax Credit is calculated as a percentage of adjusted net income, where adjusted net income is net income less social assistance payments, workers' compensation payments and foreign income.
Minimum Credits of $250 for single filers and $500 for couples were introduced for the 2002 tax year and were increased to $350 and $700, respectively, for the 2005 tax year.
| Adjusted Net Income | Cost of Living Tax Credit | |
|---|---|---|
| 2005-2009 | Less than $12,000 | Adjusted net income x 2.60% |
| $12,000 - $48,000 | $312.00 + 1.25% x (Adjusted net income - $12,000) | |
| $48,000 - $66,000 | $762.00 + 1.00% x (Adjusted net income - $48,000) | |
| Over $66,000 | $942.00 | |
| 2001-2004 | Less than $12,000 | Adjusted net income x 1.60% |
| $12,000 - $48,000 | $192.00 + 1.25% x (Adjusted net income - $12,000) | |
| $48,000 - $66,000 | $642.00 + 1.00% x (Adjusted net income - $48,000) | |
| Over $66,000 | $822.00 | |
| 1993-2000 | Less than $12,000 | Adjusted net income x 1.25% |
| $12,000 - $48,000 | $150.00 + 1.25% x (Adjusted net income - $12,000) | |
| $48,000 - $66,000 | $510.00 + 1.00% x (Adjusted net income - $48,000) | |
| Over $66,000 | $645.00 | |
Political Contribution Tax Credit
The Political Contribution Tax Credit allows personal and corporate donors to election candidates to claim a territorial tax credit against NWT income taxes payable. The Credit is non-refundable and non-transferable and unused amounts may not be carried forward to subsequent taxation years. The credit is calculated as 100 per cent of the first $100 donated and 50 per cent any additional donation to a maximum credit of $500.
Dividend Tax Credit
The Dividend Tax Credit is calculated as 6% and 11.5% of the grossed-up dividends of small corporations and large corporations, respectively.
