Provincial Tax: Understand how federal and provincial tax rates stack together with our Canadian Provincial Tax Guide.
Calculate the GST on purchases in Nunavut. Enter the amount before or after tax to see the full breakdown.
Quick answer: Nunavut charges only 5% GST. A $100 item costs $105 after tax — but be aware that prices in Nunavut are often 2-3x higher than in southern Canada.
Sales tax in Nunavut (2026)
Nunavut charges only the 5% federal GST (Goods and Services Tax). There is no territorial sales tax, PST, or HST — making Nunavut one of the lowest-tax jurisdictions in Canada for consumer purchases.
While the low tax rate is an advantage, the overall cost of goods in Nunavut is substantially higher than in southern Canada due to the high cost of shipping goods to remote northern communities.
The Nunavut paradox: Low taxes, high prices
Nunavut has Canada’s lowest sales tax (tied with Alberta, Yukon, and NWT), but the highest cost of living. This is due to:
- Geography — goods must be flown or shipped during limited seasons
- Limited supply — small population means less buying power and fewer stores
- High logistics costs — fuel, transportation, and storage costs are extreme
How Nunavut compares to other provinces
| Province / Territory | GST | PST/HST | Total Sales Tax |
|---|---|---|---|
| Nunavut | 5% | 0% | 5% |
| Alberta | 5% | 0% | 5% |
| Yukon | 5% | 0% | 5% |
| NWT | 5% | 0% | 5% |
| Saskatchewan | 5% | 6% PST | 11% |
| British Columbia | 5% | 7% PST | 12% |
| Ontario | — | 13% HST | 13% |
| New Brunswick | — | 15% HST | 15% |
Nunavut shares the lowest total sales tax rate in Canada at 5% with Alberta, Yukon, and the NWT.
What is exempt from GST in Nunavut?
GST exemptions follow federal rules:
- Basic groceries — unprocessed food items (milk, bread, fresh produce, meat)
- Prescription medications — prescribed drugs and certain medical devices
- Residential rent — rental of residential property is GST-exempt
- Resale homes — GST does not apply to existing home purchases (applies to new construction)
- Certain financial services — banking fees and insurance premiums
Prepared foods, alcohol, consumer goods, and services are subject to the full 5% GST.
GST on purchases in Nunavut
| Purchase Amount | GST (5%) | Total Cost |
|---|---|---|
| $50 | $2.50 | $52.50 |
| $100 | $5.00 | $105.00 |
| $500 | $25.00 | $525.00 |
| $1,000 | $50.00 | $1,050.00 |
| $10,000 | $500.00 | $10,500.00 |
Cost of living context
Although Nunavut has the lowest possible sales tax rate in Canada, the cost of living is among the highest due to:
- Grocery costs — staple items can cost 2x to 3x more than in southern Canada
- Shipping and freight — most goods must be flown or shipped in during limited seasons
- Housing costs — limited housing supply and high construction costs in Iqaluit and other communities
- Utilities — heating and electricity costs are significant
The Northern Residents Deduction helps offset these higher costs. Nunavut residents can deduct up to $22 per day ($8,030 per year) from taxable income.
Frequently asked questions
What is the sales tax rate in Nunavut?
5% GST only. There is no territorial sales tax, PST, or HST.
Does Nunavut have a PST or HST?
No. Only the 5% federal GST applies in Nunavut.
Are groceries cheaper tax-wise in Nunavut?
Basic groceries are GST-exempt, but food prices are 2x to 3x higher than southern Canada due to transportation costs.
Related guides
- Nunavut tax brackets 2026 — Territorial and federal income tax rates
- Nunavut mortgage rates 2026 — Compare current rates in Iqaluit
- Nunavut mortgage affordability calculator — What home can you afford in Nunavut?
- Nunavut real estate commission calculator — Commission on home sales
- Nunavut hourly-to-salary calculator — Convert hourly to annual salary
- Nunavut minimum wage 2026 — Current rates (highest in Canada at $19/hr)
- Income percentile calculator — See how your income compares
- Income needed to buy a home in Canada — Salary requirements by city
- Ontario sales tax calculator — Compare to a 13% HST province
GST/HST/PST rates across Canada
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy