Low nitrogen (N) availability in the Arctic and Subarctic constrains plant productivity, resulting in low litter inputs to soil. Increased N availability and litter inputs as a result of climate change, therefore, have the potential to impact the functioning of these ecosystems. We examined plant and microbial responses to chronic inorganic N (5 g m−2 year−1) and/or litter (90 g m−2 year−1), supplied during three growing seasons. We also compared the response to more extreme additions, where the total cumulative additions of N (that is, 15 g m−2) and litter (that is, 270 g m−2) were concentrated into a single growth season. Plant productivity was stimulated by N additions and was higher in the extreme addition plots than those with chronic annual additions. Microbial community structure also differed between the chronic and extreme plots, and there was a significant relationship between plant and microbial community structures. Despite differences in microbial structure, the field treatments had no effect on microbial growth or soil C mineralization. However, gross N mineralization was higher in the N addition plots. This led to a lower ratio of soil C mineralization to gross N mineralization, indicating microbial targeting of N-rich organic matter (“microbial N-mining”), likely driven by the increased belowground C-inputs due to stimulated plant productivity. Surprisingly, aboveground litter addition also decreased ratio of soil C mineralization to gross N mineralization. Together, these results suggest that elevated N availability will induce strong responses in tundra ecosystems by promoting plant productivity, driving changes in above- and belowground community structures, and accelerating gross N mineralization. In contrast, increased litter inputs will have subtle effects, primarily altering the ratio between C and N derived from soil organic matter.