Ben Nguyen 
The Northwest Territories (NWT) provides two beneficial programs for residents – the Northwest Territories Child Benefit (NWTCB), which complements the federal Canada Child Benefit, – and the Northwest Territories Cost of Living Offset (NWTCLO), which is related to the GST/HST credit. These initiatives help offset the costs of raising children and the impact of carbon pricing for families and individuals in the territory. This guide will explain everything you need to know about these valuable programs.
What is the Northwest Territories Child Benefit?
The Northwest Territories Child Benefit (NWTCB) is a non-taxable monthly payment made to eligible families with children under the age of 18 who are residents of the Northwest Territories. It is intended to help low- and middle-income families with the cost of raising children.
The NWTCB is administered by the Canada Revenue Agency (CRA) on behalf of the Government of the Northwest Territories (GNWT). It combines with the Canada Child Benefit (CCB) into a single monthly payment.
This program is fully funded by the GNWT and the amount received depends on the number and ages of children in the family, as well as net family income.
Who is Eligible for the NWTCB?
To be eligible for the NWTCB, you must meet the following criteria:
- Be a resident of the Northwest Territories
- Have one or more children under the age of 18 living with you
- Have a net family income below $80,000 per year
- File an income tax return annually
If you are already receiving the Canada Child Benefit and meet the eligibility requirements above, you will automatically qualify for the NWTCB.
How Much is the NWTCB?
The amount of the NWTCB depends on the number and ages of eligible children.
Here are the maximum NWTCB amounts by number of children:
Children Under 6 Years Old
| Number of Children | Maximum Total Monthly NWTCB | Maximum Total Annual NWTCB |
|---|---|---|
| 1 child | $67.91 | $815 |
| 2 children | $122.25 | $1,467 |
| 3 children | $166.41 | $1,997 |
| 4 children | $203.75 | $2,445 |
| Each additional child | plus $30.58 | plus $367 |
Children 6-17 Years Old
| Number of Children | Maximum Total Monthly NWTCB | Maximum Total Annual NWTCB |
|---|---|---|
| 1 child | $54.33 | $652 |
| 2 children | $97.83 | $1,174 |
| 3 children | $133.08 | $1,597 |
| 4 children | $163.00 | $1,956 |
| Each additional child | plus $24.41 | plus $293 |
Families with a net income above $30,000 may receive a partial NWTCB amount, with payments reduced based on their specific income level and eliminated entirely at a net family income of $80,000.
To estimate your potential NWTCB amount, you can use the CRA Child and Family Benefits Calculator. This will require entering your specific income details from your tax return.
How and When are NWTCB Payments Issued?
The NWTCB is combined with the Canada Child Benefit into a single monthly payment issued by the CRA. Payments are made on the 20th of each month, although this may shift slightly if the 20th falls on a weekend or holiday.
To receive the NWTCB, you must be signed up for direct deposit through the CRA. Paper cheques are no longer issued.
You can view your payment schedule and amounts by signing into your CRA My Account and selecting “View CCB and related provincial and territorial payments.”
What is the NWTCB Based On?
There are two main factors that determine your NWTCB amount:
Number and Ages of Children
As shown in the tables above, the amount of the benefit depends on how many children you have and their ages. More children and younger children result in higher payments.
Adjusted Family Net Income
Your NWTCB is also based on your family net income from your previous year’s tax return. Families with income over $30,000 may receive partial payments, while those over $80,000 do not qualify.
Therefore, it is important to file your taxes annually to provide accurate income information and receive the full NWTCB that your family is eligible for.
What is the Northwest Territories Cost of Living Offset?
The Northwest Territories Cost of Living Offset (NWTCLO) is a tax-free quarterly payment made to residents of the NWT to help offset the cost of the carbon tax. It combines with the federal GST/HST credit into a single payment.
This program is fully funded by the Government of the Northwest Territories, and the amount received depends on which region you live in. Additional payments are provided to those in colder, higher fuel usage regions.
Who is Eligible for the NWTCLO?
To receive the NWTCLO, you must:
- Have been a resident of the NWT for at least 3 consecutive months leading up to the payment date
- Have filed an income tax return for the previous tax year
You must file a tax return to get the NWTCLO even if you have no income or your income is non-taxable.
How is the NWTCLO Calculated?
The NWTCLO payment amounts are calculated based on which of 3 postal code zones you live in. The zones account for the different heating costs across regions of the NWT.
The 2024-2025 NWTCLO regional payment amounts are:
Zone A:
- $441 per adult
- $505 per child
Zone A locations: Yellowknife, Dettah, Ndilo, and others
Zone B:
- $451 per adult
- $515 per child
Zone B locations: Inuvik, Fort Simpson, Gametì, and others
Zone C:
- $470 per adult
- $534 per child
Zone C locations: Norman Wells, Tulita, Paulatuk, and others
The amounts are not subject to a benefit reduction based on income. All eligible residents receive the full amount for their zone.
See also: Average Household Income in Canada
How Do I Receive My NWTCLO Payment?
The NWTCLO is issued quarterly by the CRA through direct deposit or cheque based on your payment preferences with them. Payments go out in July, October, January, and April.
For tax and benefit information for individuals living in the territories, contact the CRA line at 1-866-426-1527.
Child Benefit Programs in Other Provinces
In addition to the Northwest Territories Child Benefit, families may also want to explore other child benefit programs offered in various provinces across Canada. These programs provide additional financial support tailored to the unique needs of residents in each region:
Understanding The New Brunswick Child Tax Benefit
Summary
The Northwest Territories Child Benefit and Cost of Living Offset provide significant financial support to NWT families and residents.
The tax-free NWTCB helps parents afford the costs of raising children, while the NWTCLO reduces the burden of carbon pricing across the territory.
To receive these benefits, file your taxes annually, even if you have no income. Payments are issued automatically to those who qualify.
Check your eligibility, payment details, and get answers to other questions by contacting the CRA or visiting the Government of the Northwest Territories website. These programs make a real difference in offsetting costs and supporting families in the Northwest Territories.
FAQs About The Northwest Territories Child Benefit and Cost of Living Offset
1. What is the Northwest Territories Child Benefit?
The NWTCB is a monthly payment made to qualifying families in the NWT to help with the costs of raising children under 18 years old.
2. Who qualifies for the NWTCB?
You must be an NWT resident with children under 18, have a net family income under $80,000, and file taxes annually.
3. How much is the Northwest Territories Child Benefit?
The NWTCB amount depends on the number and ages of your children. Maximum annual amounts range from $652-$2,445 per child.
4. When do I get NWTCB payments?
The NWTCB is paid monthly, usually on the 20th, combined with your Canada Child Benefit payment.
5. Do I need to apply for the NWTCB?
No, if you get the Canada Child Benefit and are an NWT resident, you automatically get the NWTCB too.
6. What is the NWT Cost of Living Offset?
The NWTCLO is a tax-free payment made quarterly to help offset the costs of carbon pricing in the NWT.
7. Who is eligible for the Cost of Living Offset?
You must be an NWT resident for 3+ months and file taxes to get the NWTCLO.
8. How is the Cost of Living Offset calculated?
The NWTCLO amount depends on which of 3 postal code zones you live in, based on regional heating costs.
9. When do I receive my Cost of Living Offset payment?
The NWTCLO is paid quarterly in July, October, January and April, combined with your GST/HST credit.
10. Do I need to apply for the NWT Cost of Living Offset?
No application is needed. If you file taxes as an NWT resident you automatically receive the NWTCLO.
