You probably know Saskatchewan is well known for its wheat exports. But did you know it’s also where the first ATM machines were made and used in Canada?
As with most provinces, Saskatchewan uses a progressive tax structure with only three tax brackets. The brackets increase each year based on inflation. Visit Saskatchewan’s income tax rates page for this year’s tax bracket rates.
- Saskatchewan uses a progressive tax structure with only three tax brackets. The brackets increase each year based on inflation.
- Your taxable income represents your total income minus federal deductions like the RRSP deduction and child care expenses.
- There are many unique credits for residents of Saskatchewan.
Saskatchewan’s tax brackets for Tax Year 2023
Tax Rate | Tax Bracket | Taxable Annual Income |
10.5% | on the first $49,720 | $49,720 |
12.5% | on the next $92,388 | $49,721up to $142,058 |
14.5% | on the portion over $142,058 | over $142,058 |
For 2022 tax rates, review this link from the Canadian Government.
How Saskatchewan’s tax brackets work
Under the current tax on income method, tax for all provinces (except Québec) and territories is calculated the same way as federal tax. Form SK428 is used to calculate this provincial or territorial tax, as well as non-refundable tax credits.
Your taxable income represents your total income minus federal deductions like the RRSP deduction and childcare expenses. Like its name implies, it’s the amount on which you pay income tax.
There’s an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal amount” or “BPA.” For the 2023 tax year, the federal basic personal amount (BPA) is $15,000, while the Saskatchewan BPA amount is $17,661.
Saskatchewan has a tax system similar to other Canadian provinces. Many of the provincial taxes and credits for residents of Saskatchewan complement similar credits at the federal level, but there are many unique credits for residents of Saskatchewan.
Saskatchewan’s provincial tax credits and deductions
- Home renovation tax credit (since 2021): This is a non-refundable tax credit that Saskatchewan homeowners can save up to $2,100 in provincial income tax by claiming a 10.5% tax credit on up to $20,000 of eligible home renovation expenses.
- Saskatchewan low-income tax credit (SLITC): The SLITC is a fully refundable, non-taxable benefit paid to Saskatchewan residents with low and modest incomes. To be eligible for benefits, you must file an income tax return as a resident of Saskatchewan and meet income and family criteria. The Credit provides quarterly payments to eligible residents and is issued by the federal government with the GST/HST credit.
- Saskatchewan volunteer firefighters and first responders amounts: These new tax credits came into effect with the 2020 taxation year. Individuals who perform at least 200 hours of certified, eligible volunteer services in a year will be able to claim a $3,000 tax credit amount.
- Saskatchewan employment supplement: This payment helps low-income families with children.
- Graduate retention program: This program provides a rebate of up to $20,000 on tuition fees for graduates to live in Saskatchewan and file a return in that province. Unused credits can be deducted as part of the Graduate Tuition Refund.
- First-time home buyers tax credit: This is a non-refundable credit of up to $1,100 for eligible tax payers who bought qualifying homes after December 31, 2011.
A complete list of non-refundable tax credits and other credits or deductions for Saskatchewan residents can be found in this CRA link: Saskatchewan tax and credits.
For federal rates, review the following TurboTax article – Canada’s federal personal income tax brackets and tax rates.
