Indexation Will Save Saskatchewan People $10.6 Million in 2015

Released on December 30, 2014

Saskatchewan Has Highest Tax-Free Income Threshold in Canada for Family of Four

The annual indexation of the provincial income tax system will save Saskatchewan people an estimated $10.6 million in 2015.

“All Saskatchewan income tax brackets and tax credit amounts will go up 1.7 per cent in 2015, matching the national rate of inflation,” Finance Minister Ken Krawetz said. “Indexation helps protect Saskatchewan taxpayers from ‘bracket creep’ and is part of our government’s commitment to fairness and competitiveness in taxation.”

Individual taxpayers now pay no Saskatchewan income tax on their first $18,960 of income while a family of four pays no Saskatchewan income tax on their first $49,155 of income –- the highest tax-free income threshold for a family of four in Canada. A family of four with $50,000 annual income has now seen their provincial income tax cut by more than 95 per cent since 2007 –- from about $2,300 in income tax to less than $100 in income tax in 2015 -- a savings of more than $2,200 a year.

“By the end of 2015, a family of four with $50,000 income will have saved about $19,000 through our government's various tax reductions,” Krawetz said. “Overall, Saskatchewan residents have saved approximately $490 million through lower personal income taxes.”

Since 2008, about 112,000 low-income Saskatchewan residents have been removed from the tax rolls, and various measures to reduce personal income taxes in Saskatchewan have been introduced, including:

Increasing personal, spousal and child exemption amounts and introducing a new Low Income Tax Credit in 2008;
Introducing a new Active Families Benefit of $150 per child for cultural and sports activities in 2009;
Raising personal, spousal and child exemption amounts again in 2011; and
Introducing a new First-Time Homebuyers' Tax Credit in 2012 as well as expanding the Active Families Benefit to include all children 17 and under (previously, it only covered ages 6 to 14).

When income tax savings are combined with new tax reduction programs introduced since 2007 (including the refundable Low-Income Tax Credit and the Active Families Benefit), a single person with $25,000 annual income will benefit from $888 in lower provincial tax in 2015 than in 2007. A family of four with $50,000 combined income will see tax savings of $2,894 and a family of four with $75,000 combined income will see tax savings of $2,636, when comparing 2015 to 2007.

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For more information, contact:

Brian Miller
Finance
Regina
Phone: 306-787-6605
Email: brian.miller@gov.sk.ca

Indexation Will Save Saskatchewan People $10.6 Million in 2015

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