RRSP or TFSA in the Northwest Territories in 2026
The calculator applies the 2026 Northwest Territories rates to your RRSP contribution, and shows the same contribution in every other province and territory.
Refund or tax saved
$1,455
Average rate on the contribution: 29.1%; marginal rate before: 29.1%.
| Federal tax saved | $1,025 |
| Provincial tax saved | $430 |
| Taxable income after the deduction | $90,000 |
| Total tax before / after | $19,033 / $17,578 |
The “refund” is the drop in your tax for the year: it comes back as cash only if the tax withheld from your pay exceeded the tax owed.
| Province or territory | Marginal rate | Tax saved |
|---|---|---|
| Quebec | 36.1% | $1,806 |
| Ontario | 31.5% | $1,484 |
| British Columbia | 28.2% | $1,410 |
| Alberta | 30.5% | $1,525 |
| Manitoba | 33.3% | $1,663 |
| Saskatchewan | 33.0% | $1,650 |
| Nova Scotia | 37.2% | $1,858 |
| New Brunswick | 34.5% | $1,725 |
| Newfoundland and Labrador | 36.3% | $1,815 |
| Prince Edward Island | 37.1% | $1,855 |
| Yukon | 29.5% | $1,475 |
| Northwest Territories | 29.1% | $1,455 |
| Nunavut | 27.5% | $1,375 |
Prepared by Radif Partners · How we calculate · limits and tax tables read on canada.ca · estimates only, not a notice of assessment
In the Northwest Territories, 2026 territorial tax has four rates: 5.9%, 8.6%, 12.2%, 14.05%, starting at $53,003, $106,009, $172,346. The basic personal amount is $18,198, so no territorial tax is owed below about $18,200 of taxable income. A $5,000 RRSP contribution cuts total tax by $1,455 at $90,000, against $1,475 in Yukon and $1,375 in Nunavut. The NWT therefore refunds more than Nunavut at every income, and sometimes more, sometimes less than Yukon, with one quirk: its top rate, 14.05%, starts at $172,346, before the $181,440 federal threshold. Between those two amounts, a deduction saves 40.0%. The RRSP or TFSA choice depends, as everywhere, on expected retirement income, and for employees with a workplace pension plan, on the RRSP room left once the pension adjustment is taken off.
The 2026 territorial tax table
The Northwest Territories apply four rates: 5.9%, 8.6%, 12.2%, 14.05%, with thresholds at $53,003, $106,009, $172,346, according to the Canada Revenue Agency 2026 rates page. The July T4127 guide reports no mid-year change there. The territorial thresholds fall a little before Ottawa's: $53,003 against $58,523, $106,009 against $117,045, $172,346 against $181,440. Each time, there is a band of a few thousand dollars where the combined rate sits halfway between two steps.
A $18,198 basic amount
The NWT basic personal amount is well above Ontario's ($12,989) or Nova Scotia's ($11,932). It is credited at 5.9%, which removes all territorial tax below about $18,200 of taxable income. In practice, an RRSP contribution made below that level recovers at best the federal share, and nothing at all below the federal amount of $16,452. Unlike Ottawa's, the territorial amount does not shrink with income, so it adds no hidden rise in the marginal rate above $181,440.
Next to Yukon and Nunavut
All three territories have low tax tables, but they are not the same. The table gives the tax cut from the same $5,000 contribution at seven incomes, federal tax included.
| Taxable income | Northwest Territories | Yukon | Nunavut |
|---|---|---|---|
| $40,000 | $995 | $1,020 | $900 |
| $56,000 | $1,076 | $1,020 | $906 |
| $90,000 | $1,455 | $1,475 | $1,375 |
| $110,000 | $1,599 | $1,475 | $1,375 |
| $150,000 | $1,910 | $1,845 | $1,750 |
| $176,000 | $1,978 | $1,845 | $1,750 |
| $220,000 | $2,167 | $2,111 | $2,040 |
Nunavut refunds the least at all seven incomes in the table, a reflection of its rates, the lowest in the country. Between Yukon and the NWT, the order changes with income. At $40,000, Yukon refunds slightly more ($1,020 against $995), because its first rate, 6.4%, is above the NWT's 5.9%. At $56,000, the NWT takes the lead: its first threshold, $53,003, has already been crossed, while Yukon is waiting for the $58,523 federal threshold. Above $106,009, the NWT stays ahead, and the gap reaches $133 at $176,000, in the band where its top rate already applies. For someone choosing between two territories, the tax saved by an RRSP contribution is never the deciding factor: the gaps are counted in tens of dollars, while expected retirement income can swing the result by thousands.
The $172,346 step
The top territorial rate, 14.05%, starts at $172,346, about $9,094 before the 29% federal bracket. In that band, the combined rate is 40.0%; above $181,440, it moves to 43.3%, including the shrinking federal basic amount. A contribution that takes income from $185,000 down to $170,000 crosses both steps and saves $6,081.
RRSP or TFSA in the Northwest Territories
A tie
$0
| RRSP contribution for the same effort | $7,052 |
| Of which tax refund | $2,052 |
| TFSA at the end | $10,469 |
| RRSP at the end, before tax | $14,766 |
Two common profiles
First profile: an employee on $95,000 who belongs to a workplace pension plan. The pension adjustment, say $9,000, cuts new RRSP room to $8,100, as the CRA page on the deduction limit explains. The pension will likely keep this person in a bracket close to today's: with $70,000 of expected retirement income, the RRSP recovers 29.1% and pays 29.1% on withdrawal, the two accounts tie. With an equal or near-equal result, the more flexible TFSA deserves priority: its money stays available tax-free, and a withdrawal does not shrink future room.
Second profile: $65,000 of income, no pension plan, $30,000 expected in retirement. The RRSP recovers 28.6% and pays only 19.9% later; after 30 years, it leaves $1,481 more than the TFSA for the same $5,000 yearly effort.
One last point of timing applies to both profiles. An RRSP contribution counts for 2026 if it is made no later than 60 days after the end of the year, which is March 1, 2027; it is often decided once the year's income is known, which makes it possible to aim exactly at a threshold such as $172,346 or $106,009. The TFSA has no deadline: unused room carries forward with no end date, and you can contribute at any time.