Released on April 15, 2015
With the personal tax filing deadline for the 2014 tax year approaching, Saskatchewan people are encouraged to take advantage of the various provincial tax credits to help keep their taxes low.“If you’re a recent first-time homebuyer or post-secondary graduate, tax credits are available which can reduce your taxes payable and keep more money in your pockets,” Finance Minister Ken Krawetz said. “Saskatchewan people with lower incomes or with children enrolled in sports programs or cultural or recreational activities, as well as workers who are required to purchase tools as a condition of their employment can also take advantage of tax credits aimed at helping them keep more of what they earn.”
Provincial tax credits include:
First-Time Homebuyers Tax Credit
- A non-refundable income tax credit of up to $1,100, based on the first $10,000 of an eligible home purchase (a similar federal credit of up to $750 is also available).
- Income tax credits provided over a seven-year period that refund up to $20,000 of tuition fees paid by eligible post-secondary graduates who live in Saskatchewan and file a Saskatchewan tax return. For more information, visit the Saskatchewan Advanced Education website at www.saskatchewan.ca/live/post-secondary-education/graduate-retention-program.
- A refundable income tax credit paid quarterly to assist lower-income Saskatchewan people. The credit is paid in conjunction with the federal Goods and Services Tax Credit. For more information, visit the Canada Revenue Agency website at www.cra-arc.gc.ca/bnfts/rltd_prgrms/sk-eng.html.
- A refundable income tax credit of up to $150 per child 18 years of age or younger that helps Saskatchewan families with the cost of their children’s participation in cultural, recreational and sports activities. For more information, visit the Saskatchewan Parks, Culture and Sport website at www.pcs.gov.sk.ca/afb.
- A non-refundable income tax credit that helps with the cost of purchasing, replacing or upgrading eligible tools by qualifying employees as a condition of their employment. The credit consists of a one-time trade entry amount and an annual maintenance amount.
Last year in Saskatchewan, more than 270,000 households claimed the Low-Income Tax Credit, more than 56,000 recent graduates claimed Graduate Retention Program tax credits, more than 47,000 families claimed the Active Families Benefit, more than 7,000 new homeowners claimed the First-Time Homebuyers Credit, and more than 5,000 tradespersons claimed the Tool Tax Credit.
The changes announced in the 2015-16 Budget to the Graduate Retention Program (GRP) and the Active Families Benefit (AFB) are effective with the 2015 taxation year and have no impact on the filing of 2014 taxes. Starting with the 2015 tax year, the GRP credit will be applied against the graduate’s Saskatchewan tax liability, and unused amounts can be carried forward for up to 10 years after the year of graduation. Also starting with the 2015 tax year, the AFB will be subject to income-testing and available to families with combined net incomes below $60,000.
“Since 2007, our government has delivered the largest income tax cuts and the largest education property tax cuts in Saskatchewan history,” Krawetz said. “For the 2015 tax year, the personal income tax reductions introduced by our government are expected to save Saskatchewan people more than $485 million. Since 2007, Saskatchewan people have saved more than $3.3 billion as a result of these income tax measures.”
A Saskatchewan family of four with $50,000 in annual income will pay just $64 in provincial income tax for the 2015 tax year (filing in 2016), compared to $2,302 in 2007, representing tax savings of $2,238 annually. In terms of all provincial taxes, that same family will pay $489 in Saskatchewan for the 2015 tax year, compared to $3,032 in Manitoba, $4,293 in British Columbia and $1,103 in Quebec.
For more information about eligibility or about how to claim any of the credits listed above, visit the Canada Revenue Agency website at www.cra-arc.gc.ca.
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For more information, contact:
Brian Miller
Finance
Regina
Phone: 306-787-6605
Email: brian.miller@gov.sk.ca