Northwest Territories
Northwest Territories sales tax is 5%, GST only.
The Northwest Territories charges no territorial sales tax, so 5% GST is the entire tax on a Yellowknife purchase. Its headline consumption levy is a 2% payroll tax charged to employees rather than employers.
How much is sales tax in the Northwest Territories?
Sales tax in the Northwest Territories is 5%, consisting only of the federal GST. The Northwest Territories levies no territorial sales tax, so the CRA rate table shows NWT at 5% GST and 0% PST, and a $100 taxable purchase costs $105.00.
- Federal GST
- 5%
- Provincial sales tax
- None
- Combined rate
- 5%
- Tax on $100
- $5.00
$100.00 plus $5.00 tax is $105.00 in Northwest Territories.
Northwest Territories charges 5% on most goods and services.
Rates verified July 2026. This is an estimate, not tax advice. Confirm the rate that applies to your sale with the Canada Revenue Agency or the Northwest Territories tax authority before you invoice or file. Not registered yet? Read how to get a GST number in Canada.
The arithmetic
What does a $100 purchase cost in the Northwest Territories?
A $100 purchase in the Northwest Territories costs $105.00. Multiply by 0.05 to add the GST, divide by 1.05 to take it back out, and stop there. With no territorial sales tax there is no second rate and nothing to compound.
| Amount before tax | GST 5% | Provincial | Total tax | Total |
|---|---|---|---|---|
| $100.00 | $5.00 | None | $5.00 | $105.00 |
| $500.00 | $25.00 | None | $25.00 | $525.00 |
| $1,000.00 | $50.00 | None | $50.00 | $1,050.00 |
| $5,000.00 | $250.00 | None | $250.00 | $5,250.00 |
Every line is calculated in whole cents, so the parts always add up to the total. Rates verified July 2026.
To work backwards in Northwest Territories, divide the tax-included total by 1.05. A $105.00 total comes apart into $100.00 before tax, $5.00 of GST. The reverse GST and HST calculator does that for any total, in any province.
The short answer
Why does the Northwest Territories have no sales tax?
The Northwest Territories has never levied a territorial sales tax, and the CRA rate table lists NWT at 5% GST and 0% PST. Because there is no provincial-style tax to add, there is also no compounding question: a $100 purchase costs $105.00 whether you buy it in Yellowknife or Inuvik.
The territory raises its own consumption revenue from a 2% payroll tax charged to employees rather than employers, which the Department of Finance itself notes is unlike other jurisdictions. It applies to anyone who works in the NWT no matter where they live, employers withhold it at source, and it does not appear on the T4 slip. In a territory with a large fly-in mining and construction workforce, that reaches income a till-based sales tax never would.
Fuel tax does the rest of the work, and it is split six ways by use: 10.7 cents per litre on on-highway gasoline against 6.4 cents off-highway, 9.1 cents on motive diesel against 3.1 cents on heating and other non-motive diesel, 1.0 cent on aviation fuel and 11.4 cents on railway fuel. Tobacco is 34.4 cents per cigarette and 47.3 cents per gram of loose tobacco, rates unchanged since August 1, 2022.
Special rates
What does the Northwest Territories tax instead of a sales tax?
The territory charges tobacco tax per cigarette and per gram, splits its fuel tax six ways by use, and taxes cigars at 75% of the suggested retail price. Only the cigar rate is a percentage.
| What it applies to | Rate | How it works |
|---|---|---|
| Cigars | 75% | Northwest Territories tobacco tax on cigars is 75% of the suggested retail price. This is an ad valorem rate, and the 75% figure has held in every rate schedule the territory has published back to 1989.fin.gov.nt.ca |
| Charge | How it is calculated |
|---|---|
| Cigarettes | Northwest Territories tobacco tax on cigarettes is 34.4 cents per cigarette, which works out to $68.80 on a carton of 200. The rate has been unchanged since August 1, 2022. This is a territorial excise-style tax charged in addition to the 5% GST.fin.gov.nt.ca |
| Loose tobacco | Northwest Territories tobacco tax on loose tobacco is 47.3 cents per gram, or $94.60 per 200 grams, unchanged since August 1, 2022. It is charged in addition to the 5% GST.fin.gov.nt.ca |
| Gasoline (on-highway) | Northwest Territories fuel tax on on-highway gasoline is 10.7 cents per litre under the Petroleum Products Tax Act. Off-highway gasoline is taxed at the lower rate of 6.4 cents per litre.fin.gov.nt.ca |
| Gasoline (off-highway) | Northwest Territories fuel tax on off-highway gasoline is 6.4 cents per litre, roughly 40% below the on-highway gasoline rate of 10.7 cents per litre.fin.gov.nt.ca |
| Diesel (motive) | Northwest Territories fuel tax on motive diesel is 9.1 cents per litre. Non-motive diesel, such as heating fuel, is taxed at only 3.1 cents per litre.fin.gov.nt.ca |
| Diesel (non-motive) and other fuel | Northwest Territories fuel tax on non-motive diesel and on fuel categorised as Other is 3.1 cents per litre.fin.gov.nt.ca |
| Aviation fuel | Northwest Territories fuel tax on aviation fuel is 1.0 cent per litre, the lowest fuel tax category in the territory and unchanged across every published rate schedule back to 1991.fin.gov.nt.ca |
| Railway fuel | Northwest Territories fuel tax on railway fuel is 11.4 cents per litre, the highest per-litre fuel tax category in the territory.fin.gov.nt.ca |
These are cents or dollars per unit. They are built into the shelf or pump price rather than added at the till, so they never appear as a percentage on a receipt.
Worth knowing
What else is worth knowing about tax in the Northwest Territories?
An employee-side payroll tax, a carbon tax switched off for consumers in 2025, a cigar rate unchanged since 1989, and a territorially administered property tax area covering almost the whole map.
Common questions
Questions about Northwest Territories sales tax.
What is the sales tax in the Northwest Territories?
The sales tax in the Northwest Territories is 5%, consisting only of the federal GST. The Northwest Territories has no territorial sales tax, so the Canada Revenue Agency rate table lists NWT at 5% GST and 0% PST.
Does the Northwest Territories have PST?
No, the Northwest Territories does not have a provincial or territorial sales tax. The CRA's GST/HST and PST rate table shows the Northwest Territories at 0% PST, so 5% GST is the only sales tax charged on a general taxable purchase in NWT.
How much tax do I pay on a $100 purchase in the Northwest Territories?
On a $100 purchase in the Northwest Territories you pay $5.00 in tax, for a total of $105.00. That is 5% GST with no territorial sales tax added on top.
Does the Northwest Territories charge HST?
No, the Northwest Territories does not charge HST. HST applies only in Ontario, Nova Scotia, New Brunswick, Newfoundland and Labrador, and Prince Edward Island; the Northwest Territories charges the 5% federal GST alone.
What is the tobacco tax in the Northwest Territories?
The Northwest Territories tobacco tax is 34.4 cents per cigarette ($68.80 per carton of 200), 47.3 cents per gram of loose tobacco, and 75% of the suggested retail price for cigars. These rates were last changed on August 1, 2022 and are charged in addition to the 5% GST.
Is there still a carbon tax in the Northwest Territories?
The Northwest Territories removed its carbon tax for all consumers except large emitters on April 1, 2025, delivering at-source rebates to everyone other than the diamond mines. The Northwest Territories carbon tax remains in legislation until Canada repeals the federal carbon tax, at which point NWT will repeal its own.
Across Canada
How does the Northwest Territories compare with the rest of Canada?
At 5%, the Northwest Territories is tied with Alberta, Yukon and Nunavut for the lowest sales tax in Canada, and sits well below every province that charges a provincial tax.
| Province or territory | Tax type | GST | Provincial | Total |
|---|---|---|---|---|
| British Columbia | GST + PST | 5% | 7% PST | 12% |
| Alberta | GST only | 5% | None | 5% |
| Saskatchewan | GST + PST | 5% | 6% PST | 11% |
| Manitoba | GST + RST | 5% | 7% RST | 12% |
| Ontario | HST | 5% | 8% provincial portion | 13% |
| Quebec | GST + QST | 5% | 9.975% QST | 14.975% |
| New Brunswick | HST | 5% | 10% provincial portion | 15% |
| Nova Scotia | HST | 5% | 9% provincial portion | 14% |
| Prince Edward Island | HST | 5% | 10% provincial portion | 15% |
| Newfoundland and Labrador | HST | 5% | 10% provincial portion | 15% |
| Yukon | GST only | 5% | None | 5% |
| Northwest Territories | GST only | 5% | None | 5% |
| Nunavut | GST only | 5% | None | 5% |
Rates verified July 2026 against federal and provincial government sources.
Where the Northwest Territories rates come from
Every Northwest Territories figure on this page was checked against the government sources listed below and verified in July 2026. Rates change, most often on January 1 or April 1, so treat this as a maintained reference rather than a filing document. It is an estimate, not tax advice. Verify with the Canada Revenue Agency before you rely on a number.
- canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate.html
- canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html
- fin.gov.nt.ca/en/services/licences-taxes-and-fees
- fin.gov.nt.ca/en/services/licences-taxes-and-fees/tobacco-tax
- fin.gov.nt.ca/en/resources/tobacco-tax-rates
- fin.gov.nt.ca/en/services/licences-taxes-and-fees/fuel-tax
- fin.gov.nt.ca/en/resources/northwest-territories-fuel-tax-rates
- fin.gov.nt.ca/en/services/licences-taxes-and-fees/payroll-tax
- fin.gov.nt.ca/en/services/licences-taxes-and-fees/payroll-tax-employees
- fin.gov.nt.ca/en/services/carbon-tax
- fin.gov.nt.ca/en/services/licences-taxes-and-fees/property-tax
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