Government of Saskatchewan
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    Thursday, November 27, 2014
The Saskatchewan Advantage
Minister of Finance
Highlights
Increase in Personal Tax Credit Amounts
Saskatchewan Low-Income Tax Credit
Impact on Saskatchewan Taxpayers
Provincial Policies to Assist Lower Income Families
When will Saskatchewan Taxpayers Receive Their Tax Reductions?
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This is the largest single-year income tax reduction in the Province's history and will save Saskatchewan taxpayers about $300 million per year.  All income tax filers over 18 will experience a tax reduction, retroactive for 2008.

  • Highest family - based tax exemptions in Canada - $1,320 in tax savings per year for a family of four.
    • Families with children receive the highest personal tax exemptions in Canada - a working family with two children can now earn up to $41,300 before paying provincial income tax.
    • A working family with two children earning $50,000 will see their Saskatchewan income taxes reduced by almost 60 per cent or $1,320.  This family will also see additional tax savings from the Low Income Tax Credit of $227.
  • 80,000 residents will no longer pay provincial income tax.
  • Low income tax credit now up to $600 for a family of four.
  • Up to $440 in tax cuts for single taxpayers.
  • Basic and spousal tax credit amounts (exemptions) significantly increased by $4,000, retroactive for the 2008 taxation year.
  • Child tax credit amount significantly increased by $2,000 per child, retroactive for 2008.

 

     Existing Amounts     New Amounts
Basic Personal Exemption

 $8,945

$12,945

Spousal Exemption

 $8,945

$12,945

Child Amount

 $2,795

$4,795


Interprovincial Comparison - 2008 Tax Year
Income Levels Where Income Tax Begins¹

 

      Single
      Person  

      Single
      Senior

      Single
      Parent (+2)

Single-Income
Family (+2)

Dual-Income
Family (+2)

Can    

$11,200

$16,880

 $29,070

$25,855

$28,260 

BC

$17,050

$19,510

$29,445

$21,905

$28,625

AB

$17,140

$21,915

$37,675

$34,460

$36,325

SK (old)

$9,400

$15,305

$25,200

$24,980

$28,345

SK (New)

$13,700

$19,305

$35,920

$37,900

$41,300

MB

$9,685

$16,395

$25,425

$24,915

$28,905

ON

$12,685

$17,450

$36,905

$33,690

$39,745

QC

$12,440

$11,695

$33,835

$24,640

$41,205

NB

$13,880

$16,830

$25,370

$22,230

$25,395

NS

$11,765

$15,635

$24,015

$22,135

$25,255

PEI

$10,815

$15,020

$23,150

$21,425

$24,565

NF

$12,355

$13,730

$18,055

$15,185

$18,305

¹ Includes the impact of CPP and EI deductions.  Assumes eligible families claim $3,000 in child care expenses.  Does not consider provincial refundable low income tax credits provided outside the income tax system.

  • Saskatchewan Sales Tax Credit is enhanced and renamed the Saskatchewan Low-Income Tax Credit, retroactive for 2008.  It is intended to help lower income residents including those on fixed-incomes, many of whom pay no provincial income tax (seniors, students, others).
  • Basic and spousal tax credits increased to $216 per person, and $84 per child for up to two children.
  • Maximum tax credits provided to eligible families with children increased to $600 per year.
  • Income thresholds where tax credits begin to be reduced increased to $28,335, up from a low of $13,935.
  • Lower income individuals no longer penalized for earning less than $7,200.

The Saskatchewan Low-Income Tax Credit will provide additional tax savings to over 300,000 lower income provincial residents.

Enhanced Tax Savings under the Saskatchewan Low-Income Tax Credit - Family with Two Children

  • Estimated $334 million in tax cuts provided in the current fiscal year, and about $300 million thereafter.
  • Combination of higher personal tax credit amounts and the enhanced Low-Income Tax Credit creates the widest possible distribution of tax savings among provincial residents.
  • A couple earning $50,000 with two children will see their Saskatchewan income tax reduced by almost 60 per cent while also receiving additional tax savings of $227 from the enhanced refundable tax credit.

Combined 2008 Tax Savings

Income Level¹

  Current
  2008
  Income Tax

  Income Tax
  Savings 

  Low-Income
  Tax Credit
  Savings²

Combined Tax
Savings
 

Single Individual:                                                                                     
$0

 $0

 $0

 $216

 $216

$15,000

 $575

 $440

 $108

 $548

$25,000

 $1,601

 $440

 $108

 $548

$35,000

 $2,628

 $440

 $21

 $461

$50,000

 $4,430

 $440

 $0

 $440

$75,000

 $7,680

 $440

 $0

 $440

$100,000

 $10,930

 $440

 $0

 $440

Married Couple with 2 Children:
$25,000

 $0

 $0

 $343

 $343

$35,000

 $718

 $718

 $420

 $1,138

$50,000

 $2,258

 $1,320

 $227

 $1,547

$75,000

 $4,949

 $1,320

 $0

 $1,320

$100,000

 $7,926

 $1,320

 $0

 $1,320

¹Income level is defined as total family income; the family is assumed to claim $3,000 in child care expenses.
²Tax credit savings refer to the increase in tax credits beyond the existing tax credit program

  • Lower income families also assisted by recent enhancements to the Saskatchewan Employment Supplement (SES) program.
  • When those additional benefits are considered, lower income families are significantly better off financially

Enhanced Benefits for Families

Income Level 

PIT
Savings

Low Income
Tax Credit
Savings 

  Increased
SES
Benefits¹

Combined
Savings
 

                                                                                                                   

 $25,000

 $0

 $343

 $1,440

 $1,783

 $35,000

 $718

 $420

 $1,210

 $2,348

 $50,000

 $1,320

 $227

 $0

 $1,547

 $75,000

 $1,320

 $0

 $0

 $1,320

 $100,000

 $1,320

 $0

 $0

 $1,320

¹Beginning May 1, 2008, program benefits and income thresholds were both increased under the SES program.

  • Income tax withholdings will be adjusted to reflect the higher personal tax credit amounts beginning in January 2009.  This will mean greater take-home pay for Saskatchewan taxpayers.
  • Because the tax cut applies for the current tax year, a significant tax reduction will also benefit Saskatchewan taxpayers once the 2008 tax returns are assessed in the spring of 2009.
  • Quarterly instalment payments for the Saskatchewan Low-Income Tax Credit will begin January 2009, with the increased 2008 benefits added to that payment.

For more information, please contact:

Saskatchewan Finance
Taxation and Intergovernmental Affairs Branch
1-800-667-6102 or
306-787-6722



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