Saskatchewan’s small business owners can look forward to the new year knowing they will have the highest income threshold in Canada. Individual Saskatchewan taxpayers will benefit from a full year of the lower Personal Income Tax rates introduced last July, for a savings of more than $120 million in 2018.
The provincial small business income threshold—the amount of income up to which small businesses pay tax at the much lower two per-cent small business tax rate—goes up from $500,000 to $600,000 effective January 1.
“A higher income threshold provides small businesses with an incentive to hire more workers and invest new capital right here in Saskatchewan, supporting our government’s growth agenda,” Finance Minister Donna Harpauer said. “Meanwhile, Saskatchewan’s 12 per cent corporate income tax rate continues to be competitive and among the lowest in the country, further enhancing our province’s significant advantages when attracting new investment and jobs.”
Also in 2018, Saskatchewan residents will benefit for an entire calendar year from lower provincial Personal Income Tax rates, which dropped half a percentage point effective July 1, 2017.
“Lower personal taxes help to create jobs and attract people to our province by improving Saskatchewan’s tax competitiveness,” Harpauer said.
Saskatchewan Personal Income Tax rates will drop by another half point on July 1, 2019. 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 2018, 2019 and 2020.
As a result of these tax reductions, individual’s 2020 Saskatchewan Personal Income Tax will be $308 lower than his or her 2016 Saskatchewan Personal Income Tax. Similarly, a married couple with two children and an annual family income of $100,000, will save about $117 per year in each of 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.