Northwest Territories Individual Tax Credits & Benefits Directory
Explore every major personal and family tax credit, benefit, and deduction available to residents of the Northwest Territories (NWT) for your annual tax return. Whether you're a parent, student, senior, renter, or facing health and disability challenges, this guide is your starting point for maximizing your NWT and federal tax relief.
Quick Links:
NWT Family & Children Tax Credits
The NWT offers key family and child-related tax benefits, often in partnership with federal programs:
- NWT Child Benefit: A monthly, income-tested benefit for families with children under 18.
Eligibility: Resident of NWT, have eligible children, file annual tax return.
Claim Process: No separate application; calculated automatically when you file your return and qualify for the Canada Child Benefit.
Tip: Ensure both spouses file returns to maximize benefits. Address changes must be updated with CRA.
Official info - Canada Child Benefit (CCB): Federal benefit, also available to NWT residents. Learn more
- Childcare Expense Deduction: Deduct eligible daycare and babysitting costs. Childcare Deduction Guide
NWT Senior & Pensioner Credits
- NWT Cost of Living Offset (COLO): Seniors (and all residents) receive an annual payment to offset higher living costs in the territory.
Eligibility: Resident of NWT as of Dec 31; filed a tax return.
Claim Process: Paid automatically based on your tax return. No separate application.
Calculation Example: For a single senior, the amount is based on net income and location (higher for remote communities). E.g., a senior in Yellowknife with net income of $22,000 may receive approx. $260.
Documentation: CRA Notice of Assessment. - Pension Income Amount: Deduct up to $1,000 of eligible pension income federally and provincially. See details
- Age Amount: Additional deduction for those 65+, income-tested. Claimed on your return.
NWT Student & Education Credits
- NWT Student Financial Assistance (SFA): While mainly a grant/loan program, SFA offers tax-free grants for NWT post-secondary students.
Eligibility: Long-term NWT residency, full-time or part-time studies.
Claim Process: No tax credit to claim, but SFA grants are non-taxable. Official SFA site - Tuition Tax Credit: NWT does not currently offer a territorial tuition tax credit, but you can claim the federal tuition amount.
Federal Tuition Credit Guide - Student Loan Interest Deduction: Deduct interest paid on qualifying student loans (federal and NWT). Claimed on your return.
NWT Renter & Housing Benefits
- Public Housing Rent Scale Subsidy: Income-based rent subsidy for low-income NWT residents renting public housing.
Eligibility: Must apply through local housing authority, income-tested.
NWT Housing Corp - Homeowner Property Tax Rebate: For eligible homeowners, not renters. Some communities offer local property tax rebates to seniors or low-income owners.
- Federal GST/HST Credit: Available to qualifying low/modest income renters and homeowners. GST/HST Rebate Guide
NWT Health & Disability Supports
- Disability Amount: Federal non-refundable tax credit for those with a severe, prolonged disability; available to NWT residents.
Claim Process: Form T2201 (Disability Tax Credit Certificate) must be approved by CRA.
Disability Tax Credit Guide - Medical Expense Tax Credit: Claim eligible out-of-pocket medical/dental expenses for yourself and dependents.
Tip: Keep all receipts. Can claim travel for medical care if unavailable locally.
Medical Expense Credits - Supplement for Attendant Care: If you require care, you may claim additional expenses federally and territorially.
Unique NWT Territorial Benefits
- Northern Residents Deduction: Special deduction for NWT residents to offset high cost of living and travel in remote regions.
Eligibility: Resident of a prescribed zone (all NWT) for at least 6 consecutive months.
Claim Process: Claim on federal return (Line 25500); keep proof of residency.
Calculation Example: If you lived in Yellowknife (Zone A) full year: claim up to $22/day for residency for self and each dependent, plus travel benefits.
CRA - Northern Residents Deduction - NWT Cost of Living Offset (COLO): (see above, also applies to all residents)
Frequently Asked Questions (FAQ)
- How do I claim NWT tax credits and benefits?
- Most are calculated automatically when you file your annual tax return as a resident of NWT. For some, like the Northern Residents Deduction, you must complete specific lines and may need receipts or proof of residency.
- Can I claim both NWT and federal credits?
- Yes! Many credits (such as the disability and medical expense credits) have both federal and NWT components, or NWT residents are eligible for the federal amount. Always check both sections of your return.
- Do I need to apply separately for the NWT Child Benefit?
- No. When you apply for the Canada Child Benefit, the NWT Child Benefit is calculated automatically if you are eligible and file a tax return as an NWT resident.
- Where can I get help?
- Contact the CRA, NWT Department of Finance, or a local community tax clinic.