According to the provincial government, Saskatchewanians are expected to save $9 million in the new year, thanks to indexation.
The government released Thursday that the level of indexation in 2017 will be 1.4 per cent, matching the national rate of inflation.
Brian Miller with the ministry of finance said because of this, Saskatchewan people will benefit by having more purchasing power.
“Everyone is subject to inflation, whether it’s the price of gasoline or groceries, which have been rising in price a lot lately,” explained Miller. “If (Saskatchewanians’) tax credit amounts match that level of inflation, (Saskatchewanians’) will have more spending power and that’s how (indexation) will protect consumers and taxpayers.”
Since 2008, the Saskatchewan government has taken measures to reduce personal income taxes in the province.
For example, they increased spousal, personal and child exemption amounts, as well as introduced low income and first-time homebuyers’ tax credits.
In 2017, when income tax savings are combined with new tax reduction programs, the ministry predicts a single person with an annual income of $25,000 will save $941 in provincial income tax.