All Saskatchewan people are now paying less income tax while those in the lower income bracket are getting a boost in their tax credit amounts.
Finance Minister Kevin Doherty says personal income tax rates are dropping by half a percentage point as of July 1 with another half-percentage point drop in two years time
In a release, the government says these two reductions will lower Personal Income Tax rates from the current 11 per cent/13 per cent/15 per cent to 10 per cent/12 per cent/14 per cent when fully implemented. These rate reductions will save a single Saskatchewan taxpayer, with no dependents and an annual income of $50,000, about $77 per year in each of 2017, 2018, 2019 and 2020. This individual’s 2020 Saskatchewan Personal Income Tax will be $308 lower than his or her 2016 Saskatchewan Personal Income Tax as a result of these tax reductions.
Meanwhile, a married couple with two children and an annual family income of $100,000, will save about $117 per year in each of 2017, 2018, 2019 and 2020. This family’s 2020 Saskatchewan Personal Income Tax will be $468 lower than their 2016 Saskatchewan Personal Income Tax as a result of these tax reductions.
Doherty says this move supports the government’s growth agenda while improving the province’s tax competitiveness.
The provincial NDP isn’t buying this move.
They say the increase in the provincial sales tax means Saskatchewan people will be paying more money and will see no savings as a result of this initiative.