Northwest Territories GST Calculator

How to calculate GST in the NWT

Adding GST: tax = price × 0.05, total = price × 1.05. Removing GST from a total: price = total ÷ 1.05, tax = total − price.

Worked example on $100

A $100 purchase: tax = $100 × 0.05 = $5.00. Total = $100 + $5.00 = $105.00. Working backwards from that $105.00 total: price = $105.00 ÷ 1.05 = $100.00, tax = $105.00 − $100.00 = $5.00.

What's taxed and what's GST-exempt

With no territorial sales tax, the only thing this calculator needs to work out is the 5% GST, and the usual federal exemptions apply on top: basic groceries, prescription drugs, most health and dental services, and long-term residential rent are GST-exempt. A $4 loaf of bread is tax-free; a $4 chocolate bar carries the full 5%. High shipping and freight costs into northern communities are baked into shelf prices before GST is ever calculated, which is a separate issue from the tax rate itself.

No PST, but a payroll tax instead

The Northwest Territories has never had a general sales tax of its own, so the only sales tax charged at checkout is the 5% federal GST. Instead, since 1993 the territory has funded itself in part through a 2% payroll tax, deducted from the pay of anyone who works in the NWT — regardless of which province or territory they live in — and remitted to the Government of the Northwest Territories by their employer.

What this calculator does and doesn't cover

This tool works out GST only, since that's the only tax that shows up on a receipt in the NWT. The payroll tax is withheld directly from wages before an employee is paid, so it never appears as a line item on a purchase — it's a completely separate tax from the sales tax this calculator estimates.

Northwest Territories at a glance

Registering to collect GST as a small business

With no territorial sales tax, the only registration to think about is GST/HST with the CRA. You must register once your total taxable revenue (including any associated businesses) passes $30,000 over four consecutive calendar quarters, or within a single quarter; below that you're a small supplier and registration is optional. Employers, separately, must register for the 2% territorial payroll tax if they have employees working in the NWT.

Official sources

• Canada Revenue Agency — GST/HST rates by province
• Government of the Northwest Territories — Department of Finance

Both sources checked 30 September 2026.

Frequently asked questions

Does the NWT have a territorial sales tax?

No — only the 5% federal GST applies at checkout. There's no PST, RST or HST in the territory.

What is the NWT payroll tax?

A 2% tax on wages earned for work performed in the NWT, withheld by the employer and remitted to the territorial government — separate from GST and not charged at the till.

Is the NWT payroll tax the same as income tax?

No, it's a separate tax specifically on remuneration for work done in the territory, in addition to federal and territorial income tax.

Why doesn't the NWT introduce a sales tax?

The territory has said a sales tax would raise the cost of living without a clear net benefit, given the NWT's already-high cost of goods.