Haida Gwaii residents are celebrating a major win as they will once again be eligible for the full Northern Resident Income Tax Deduction starting in the 2025 tax year. After nearly 30 years of being excluded from Northern Zone A and placed in the less favourable Intermediate Zone B, Haida Gwaii will now be fully recognized for the tax benefit that reflects the unique challenges of living on the islands.
This victory is the result of decades of advocacy led by Haida Gwaii’s own community members, with support from Skeena-Bulkley Valley MP Taylor Bachrach, his predecessor Nathan Cullen, and countless local leaders who fought for the rights of islanders. Through letters, petitions, and calls for action, they have succeeded in restoring this vital financial relief.
“There are few issues islanders mention to me more frequently than the Northern Residents Tax Deduction, commonly referred to as the ‘northern living allowance,’” said Bachrach. “I’ve been working ever since I was first elected to have the full deduction restored.”
For years, Haida Gwaii was classified in Zone B, meaning residents could only claim half of the available deduction. While other Northern Zone A communities received the full benefit, islanders were left at a disadvantage, with only $5.50 per day available instead of the $11.00 per day that residents of Zone A were entitled to.
“The cost of living in Haida Gwaii has always been high,” said Bachrach. “It’s a remote, isolated part of the province, and the cost of getting goods and services here is much higher. Restoring the full tax deduction is an important step toward addressing the unique challenges faced by those who call Haida Gwaii home.”
In addition to the cost-of-living relief, residents of northern communities also benefit from travel-related tax breaks. Unfortunately, while Haida Gwaii remained in Zone B, they again faced limitations on these travel deductions, receiving only half of the benefits enjoyed by those in the Northern Zone.
According to Living Wage B.C.’s 2024 report, Daajing Giids in Haida Gwaii ranks as the fifth most expensive place to live in the province, with a calculated living wage of $26.89 per hour. This figure starkly contrasts with the provincial minimum wage of $17.40 per hour, underscoring the financial strain many Haida Gwaii residents experience in their everyday lives.
In his recent op-ed, Bachrach expressed his long-standing commitment to achieving this change, saying, “This week, after years of pressure, the federal government tabled a Fall Economic Statement that finally includes a commitment to restore the full Northern Residents Tax Deduction for the people of Haida Gwaii!”
This shift in tax policy comes after the 2024 Fall Economic Statement, which guarantees Haida Gwaii’s eligibility for the full Northern Zone A tax deduction. To qualify, individuals must have lived on the islands for at least six consecutive months within a tax year.
Bachrach, who has championed this cause since his election in 2019, introduced a private member’s bill and presented a petition in the House of Commons in 2021 to reverse the unfair tax policy.
“Ultimately, remote residents deserve a better approach to determining which communities get the tax deduction,” said Bachrach, emphasizing his commitment to fairness. He continued, “A few months ago, I sat down for coffee in Ottawa with a public servant from Statistics Canada whose team has created a statistical Index of Remoteness… Daajing Giids comes out at 0.62, Port Clements 0.63, and Masset 0.64. Whitehorse? 0.39.”
Bachrach has made it clear that while the tax deduction’s restoration is a major step forward, there is still work to be done for northern communities. “Sometimes it can seem impossible to get the federal government to pay attention to the country’s remote communities. As someone born and raised in a tiny rural place, I’ve always believed they are essential to the fabric of our country,” he said. “There are many more issues on which these places need our advocacy – from postal service and public transportation to infrastructure investment and connectivity. We’ll keep raising our voices.”
This victory, which follows a longstanding push by both Bachrach and former MP Nathan Cullen, will provide much-needed financial relief to Haida Gwaii residents. As Bachrach said, “The government’s announcement this week shows your message has gotten through. Hawa’a for making your voices heard.”
With the tax deduction reinstated, Haida Gwaii residents will now be able to claim $11 per day for every day they lived on the islands, as long as they lived there continuously for at least six months. This change will significantly ease the financial burden on islanders and mark a major step in addressing the economic realities of life in one of the most remote regions of the province.