Saskatchewan Personal Income Tax rates will be dropping 0.5% starting on July 1.
“Lowering Personal Income Tax rates supports our government’s growth agenda and also improves Saskatchewan’s tax competitiveness,” says Finance Minister Kevin Doherty.
He adds, “shifting tax away from income through lower personal and corporate income tax rates, and onto consumption through an expanded Provincial Sales Tax (PST), encourages productivity and keeps our province’s economy strong.”
The Personal Income Tax rates will drop another 0.5% in July, 2019.
For a single taxpayer with an annual income of $50, 000 and no dependents this will result in savings of about $77 per year. For a married couple with two children and an annual family income of $100, 000 this means $117 in savings per year.
Saskatchewan Low-Income Tax Credit amounts are also going up. The maximum basic adult, spouse and equivalent-to-spouse amounts are going up $100 to 346$. The dependent child amount is increasing by $40 to $136, to a maximum of $272 per family.
As well, starting on July 1, the Saskatchewan general Corporation Income Tax rate will drop 0.5%. This will drop another 0.5$ on July 1, 2019.
“At 11%, Saskatchewan’s general CIT rate will be tied with British Columbia for the lowest in Canada, and will be one percentage point lower than Alberta’s rate,” says Doherty.
The Manufacturing and Processing Profits Tax Reduction is staying the same. The Saskatchewan government says this means “that Saskatchewan’s effective CIT rate on eligible M&P income can be as low as 9%—the lowest tax rate on manufacturing and processing in the country.”