The Saskatchewan Government will be bringing back some provincial income tax credits as well as launch new tax-reduction initiatives in 2021.
All income tax brackets and tax credit amounts will be indexed in 2021 at 1 per cent, matching the national rate of inflation. They say it will save taxpayers an estimated $15 million.
Deputy Premier and Finance Minister Donna Harpauer says “we are pleased to resume the indexation of income tax brackets and tax credit amounts in 2021. Indexation protects Saskatchewan taxpayers from bracket creep, and helps keep the tax system fair, competitive and affordable.”
The province is also bringing back the Active Families Benefit which can be claimed by families with children enrolled in sports, arts and cultural activities. They say the benefit will be included as part of the 2021-22 Budget and will be retroactive to January 1, 2021.
“Restarting the Active Families Benefit to make children’s activities more affordable was a key election commitment of our government. As promised, the Active Families Benefit will provide a non-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.”
Residents planning to renovate their homes can also claim the Saskatchewan Home Renovation Tax Credit. Under the non-refundable tax credit, homeowners can claim a 10.5 per cent credit up to $11,000 on eligible home renovation expenses incurred from October 1, 2020 to December 31, 2021. Examples for eligible renovation expenses can be found on the government’s website.