Heavy trucks and tractors in Nunavut
A Nunavut corporation buying heavy trucks and highway tractors on or after September 15, 2026 can deduct 100% of the cost in the year the property is available for use. Combined tax rates in Nunavut: 12.0% on small business income and 27.0% at the general rate.
Does Nunavut follow the federal rule? Follows the federal rule Nunavut calculates corporate tax on the federal tax base, so the federal deduction would flow through if it is enacted. Details and sources
Heavy trucks and tractors in Nunavut
Worked examples
| Purchase | Old year-one deduction | New year-one deduction | Tax reduction (small business) | Tax reduction (general rate) | NPV benefit (general) |
|---|---|---|---|---|---|
| $25,000 | $5,000 | $25,000 | $3,000 | $6,750 | $691 |
| $100,000 | $20,000 | $100,000 | $12,000 | $27,000 | $2,764 |
| $250,000 | $50,000 | $250,000 | $30,000 | $67,500 | $6,909 |
Nunavut's small business rate is 3%. A unit delivered and plated before year-end is available for use even if it has not started a route.
What sales tax does to your deductible cost in Nunavut
Nunavut charges GST 5%, no territorial sales tax on most equipment purchases. A business registered for GST/HST recovers that tax through input tax credits, so it is not part of the capital cost and not part of what you deduct. Enter the price before tax in the calculator.
If you are not registered for GST/HST, the tax you cannot recover does form part of the capital cost. Most businesses buying equipment at this level are registered.
See also: all assets in Nunavut · Heavy trucks and tractors in other provinces
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