Provincial income tax credits and indexation will help make life more affordable for Saskatchewan people in 2022.
“Indexation protects Saskatchewan taxpayers from bracket creep, ensuring tax savings are not eroded by inflation,” Deputy Premier and Finance Minister Donna Harpauer said. “Fair, affordable and competitive taxation is a key part of what makes our province a great place to work, live and raise a family.”
Income tax brackets and tax credit amounts will be indexed in 2022, saving taxpayers an estimated $36 million. The level of indexation in 2022 will be 2.4 per cent, which matches the national rate of inflation.
Saskatchewan has among the lowest personal taxes in the country. Since 2007 Personal Income Tax (PIT) exemptions have removed 112,000 people from the province’s income tax roll. In total, PIT reductions over the past 12 years are providing over $720 million in annual income tax savings to Saskatchewan people.
A family of four in the province with $100,000 in total income pays $2,084 less in combined provincial income and sales tax in 2022, compared to 2007. Also, a family of four pays no provincial income tax on their first, $53,435 of combined income which is more than twice as much as in 2007, when a family of four began paying income tax once their combined income reached just $26,150.
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 2022 taxes. The benefit was reinstated last year 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 enroll 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.
Saskatchewan residents who are planning to renovate their homes may also be able to claim the Saskatchewan Home Renovation Tax Credit.
Saskatchewan homeowners may save up to $1,155 in provincial income tax in 2021 by claiming a 10.5 per cent tax credit on up to $11,000 of eligible home renovation on 2021 income tax returns, for expenses incurred between October 1, 2020 and December 31, 2021, under this non-refundable tax credit.
A further $945 in savings may be claimed in 2022 for up to $9,000 of eligible expenses incurred between January 1, 2022 and December 31, 2022. Eligible expenses include the cost of permits, contractor labour and professional services, building materials, fixtures and equipment rentals.
For more information about the Home Renovation Tax Credit, including examples of eligible renovation expenses, please visit Saskatchewan Home Renovation Tax Credit | Tax Credits | Government of Saskatchewan
For further information about the program call the Canada Revenue Agency at 1-800-959-8281 for service in English or 1-800-959-7383 for service in French.