Yukon Budget 2026-27
March 23, 2026
On March 19, the Yukon government presented the territory’s budget for the 2026‑27 fiscal year. Here are the key highlights.
Budget deficit and proposed spending
The budget estimates a consolidated deficit of $23 million in the 2026‑27 fiscal year, which includes Yukon government owned corporations. The consolidated deficit includes an $82 million deficit related to departmental operations and a $58 million surplus from other entities, such as the Yukon Hospital Corporation, Yukon Development Corporation and Yukon University. The deficit reflects that revenues, like income taxes, are not keeping pace with rising costs of the programs the government aims to continue delivering. Despite these challenges, the budget does not propose any income tax increases for individuals or business owners.
The overall capital budget decreased by $93 million over the prior year to an estimate of $385 million. Most notable are the capital spending cuts in Highways and Public Works of $85 million over the prior year to an estimate of $165 million. The overall operating budget for the year includes a significant reduction to Highways and Public Works of $101 million and a year‑over‑year decrease of $93 million in Energy, Mines and Resources. The overall non‑consolidated budgeted spending is $2.3 billion, an increase of $235 million from the 2025‑26 budget.
The government introduced amendments to the Financial Administration Act to establish a voted contingency fund of $100 million. This will allow the government to respond quickly to emergencies and other unexpected events without special approvals or extra budgets, saving time and resources while adhering to the same robust planning and reporting requirements.
Expenditures on loan programs have decreased to $43 million, $35 million of which is an estimate for the Receiver for Victoria Gold Corp.
The territory’s net debt is forecast to be $804 million on March 31, 2027, representing a $126 million or 19% increase over the projected net debt of $678 million on March 31, 2026. The debt is approaching the territory’s debt limit of $1.2 billion, set by the federal government. The Minister of Finance has asked the federal government to increase the debt limit.
While this is not welcome news, the government expects real gross domestic product (GDP) to increase by 1.2% and 2.6% in 2026 and 2027, respectively, with tax revenues increasing from strong employment and a budget surplus in 2028‑29.
For full budget details, click here.
Personal tax measures
No personal income tax rate changes were announced as part of the budget. The current personal combined income tax rates for 2026 are outlined below:
|
Taxable Income |
Yukon |
Federal |
Combined |
|
up to $58,523 |
6.40% |
14.00% |
20.40% |
|
over $58,523 and up to $117,045 |
9.00% |
20.50% |
29.50% |
|
over $117,045 and up to $181,440 |
10.90% |
26.00% |
36.90% |
|
over $181,440 and up to $258,482 |
12.93% |
29.29% |
42.22% |
|
over $258,482 and up to $500,000 |
12.80% |
33.00% |
45.80% |
|
over $500,000 |
15.00% |
33.00% |
48.00% |
Corporate tax rates
The budget includes no changes to corporate tax rates. The current corporate income tax rates for 2026 are outlined below:
|
Small business corporations |
General corporations |
|||
|
Rate |
Threshold |
Non‑M&P |
M&P |
|
|
Yukon |
0.00% |
$500,000 |
12.00% |
2.50% |
|
Combined federal and Yukon |
9.00% |
$500,000 |
27.00% |
17.50% |
Other tax measures
Tobacco tax
Effective Jan. 1, 2026, the tobacco tax has increased from 36 to 37 cents per cigarette. Under the Tobacco Tax Act, the tobacco tax rate is indexed to inflation each year, based on any increase to the Whitehorse Consumer Price Index (CPI).
This article is intended to provide general information only and does not constitute tax, legal or accounting advice. Please contact our office to discuss your specific circumstances.