REGINA — Low personal taxes and indexation are among the measures the provincial government is taking to help make life more affordable for Saskatchewan people this year, according to the Ministry of Finance.
“A family of four with annual income of $75,000 will save $322 in 2024, as a result of indexing personal income tax,” Finance Minister Donna Harpauer said.
The Saskatchewan Government will also stop collecting carbon tax on home heating, which it says will create a saving of $400 per family.
Indexation protects against bracket creep, which is the automatic tax increases caused by inflation, the ministry says.
“Combined with our government’s commitment to keep personal taxes low, indexation is an important component of affordability that is among over $2 billion of affordability measures built into our budget each year,” Harpauer said. “For a family of four, when taxes, utilities and housing costs are considered, Saskatchewan is the most affordable province in which to live in Canada.
Indexation of the provincial Personal Income Tax (PIT) system preserves the real value of personal tax credits, and the income tax brackets, since these also rise with inflation, the ministry explains. It says Indexation protects taxpayers from automatic tax increases that would otherwise occur when their incomes rise with inflation.
For example, indexing the basic personal amount preserves the real value of the amount that all taxpayers can earn without paying tax. Indexation also preserves the real value of benefits people can receive, such as the Saskatchewan Low-Income Tax Credit. Indexation, therefore, provides significant benefits to pensioners and others who are on fixed incomes.
Also helping with affordability, families in Saskatchewan with children enrolled in sports, arts and cultural activities will continue to be able to claim the Active Families Benefit on their tax returns.
The benefit was reinstated in 2021 and provides a refundable tax credit of $150 per year, per child to eligible families. Families of children with a disability will receive an additional $50, for a total tax credit of $200 per year, per child. Parents who enrol their children in sports, arts and cultural activities are reminded to keep their receipts so they may claim the benefit with their annual tax filings.
