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 the Government of Saskatchewan’s Income Tax Rates page for this year’s tax bracket rates.
Saskatchewan’s Tax Brackets for Tax Year 2021
Taxable Annual Income
|10.5%||on the first $45,677||$45,677|
|12.5%||on the next $84,829||over $45,677 up to $130,506|
|14.5%||on the portion over $130,506||over $130,506|
For 2020 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.
There is an allowable amount of income that you can earn before you must start paying taxes. That is called the “basic personal” or “personal amount.” For the 2021 tax year, the Federal Basic Personal Amount (BPA) is $13,808, while the Saskatchewan Basic Personal Amount is $16,225.
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 Credits & Deductions
- (New for 2021) – Home Renovation Tax Credit: 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. Learn more on how to claim this credit on your taxes in this CRA link.
- 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. Learn more on how to claim this credit on your taxes in this CRA link.
- Saskatchewan Employment Supplement This payment helps low-income families; it depends on the number of children, their age and the household income.
- 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.
For federal rates, review the following TurboTax article – Canada’s Federal Personal Income Tax Brackets and Tax Rates