The Government of Saskatchewan is working to make the province more affordable for its residents.
To help people manage costs, they are using a key piece of legislation, the Saskatchewan Affordability Act and annual indexation.
“Every year our government adjusts the provincial income tax brackets and basic tax credits to protect Saskatchewan citizens from the rising cost of inflation, which is also known as indexation,” Deputy Premier and Finance Minister Jim Reiter said.
“This provides safeguards against the inflationary pressures that would otherwise push taxpayers into higher tax brackets and reduce the actual value of tax credits. Given the current affordability concerns, it is important we take these steps to help make life more affordable for the people of Saskatchewan.”
In 2025, the government will set the indexation rate at 2.7 per cent. This matches the national inflation rate average from October 2023 to September 2024. This adjustment will save Saskatchewan residents $40.5 million in annual taxes.
“A family of four will not pay any Saskatchewan income tax on the first $63,200 of their income, the highest tax-free threshold for a family of four in Canada,” Reiter said. “We have more than doubled this tax-free amount during our time in government, which continues to provide significant savings for people throughout the province and helps make life more affordable.”
The Saskatchewan Affordability Act, passed recently in the Legislative Assembly, adds more savings for residents. It raises personal income tax exemptions, including the basic personal, spousal, and child exemptions and the seniors supplement, by $500 annually for the next four years. These increases are in addition to the annual indexation adjustments.
The Act also increases and indexes the rate of the Saskatchewan Low-Income Tax Credit. Pensioners and others on fixed incomes will see significant benefits. Persons with disabilities and their caregivers will also gain from higher tax credits.
These measures build on more than $2 billion in affordability initiatives already included in every provincial budget. The Government of Saskatchewan remains committed to helping residents manage the cost of living and ensuring the province remains affordable for everyone.
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